Gems, jewellery exports may touch 20 bn by 2007

Press Trust of India

New Delhi, September 17, 2006

Gems and jewellery exports from the country are likely to touch 20 billion dollars by 2007 with buyers from the US and European Union increasing bulk purchases of diamond studded jewellery from India because of its affordability, according to a report.

The study by ICRA said India has achieved a reputation of being world’s leading diamond cutting and polishing centre for smaller stones. Now industry leaders are looking to process larger stones to clock greater growth by utilising modern advanced technologies besides cheap abundant labour.

Quoting figures released by GJPEC, ICRA said exports of gems and jewellery were expected to touch 20 billion dollars by 2007.

Although, the positive development in the industry has also been due to pick up in demand in major markets like the US, Belgium, Israel and Hong Kong and decline in growth of its major competitors.

The improved perfomance of the Indian GJ industry is also due to the decline suffered by its competitors like Belgium whose polished diamond export declined by 3.8 per cent in 2005 to 9.36 million carats. The volumes of Israel’s polished diamonds also decreased by 3.2 per cent in 2005 to 4.49 million carats.

Exports of gold jewellery have increased to Rs 170.15 billion in 2006 from Rs 52.20 billion in 2001, but are constrained by an inability to compete in global markets on the basis of price and superior design capabilities, the report said.

However, India has a positive future in gems and jewellery sector, that would be driven by increased exports to the US and other markets and growth in domestic consumers.

Significant opportunities would also arise because of promotional programmes launched by DTC for leading Indian diamond and jewellery manufacturers and exporters to boost the marketing of their products in India and abroad, the report said.

In domestic market too, diamond industry is optimistic because the healthy growth in world GDP and increased marketing expenditure would result in increased demand growth with countries like India and China becoming a potential new sources of demand for diamonds.

In India, diamonds are an established consumer product, but compared to gold the potential size of the market is only just being recognised, but the country draws a competitive advantage with its skilled labour, technology and increased degree of vertical integration.

Dazzling rise for diamonds

Simon Fleundy, Mail on Sunday
17 September 2006

Starlet Lindsay Lohan was lucky to track down the diamonds she lost at Heathrow airport last week – soaring gem prices mean replacing them would probably have cost her a lot more than their reputed $1m (£530,000) value.

Tim George, chairman and chief executive of diamond prospector Xceldiam, said prices were expected to rise 30% annually for the next few years after last year’s 95% surge.

‘There is a supply issue with some large mines becoming played out, but there is also a lot of new demand,’ he said.

‘China, which represents only two to three per cent of the £16 billion-a-year retail gem trade, is growing incredibly rapidly. India is also seeing sales soar 15 per cent a year.’

Small, rough diamonds trade in bulk for about $150 (£80) a carat. Bigger stones cost much more – about $10,000 for a ten-carat stone or millions of dollars for a 50 or 60-carat rock. Cutting and polishing quadruples the price before a jeweller sets the stone and sells it to a celebrity or a man about to go down on one knee.

Gemscience.net Adds Report, Tracking Tools to Website

By Jeff Miller

Gemological Science International (GSI) launched a new website called The GEM Experience, which provides the trade two value-add tools:  1) the ability to view their final grading report online as soon as it is processed and 2) to track the status of their diamonds from anywhere at anytime.

“Both the online actual report accessibility and the real-time tracking system significantly reduce the communication time between the lab and its clients, which is a benefit for both parties,” said Mark Gershburg CEO of GSI.

The website (www.gemscience.net) requires a unique combination of proprietary registration numbers known only to the lab and the stone’s owner for extra security login.

“The human relationship with gemstones is an important yet often overlooked aspect of what we all do, which is why we named the website ‘The GEM Experience,’” Gershburg said.   Users may also   “scope” a diamond at 60 power or take a virtual tour of his lab on the website.

A pictorial “Tour Our Lab” section invites web visitors inside the lab to have a better understanding of how a diamond or colored stone is graded.

The virtual tour begins with the security features of take-in, where the diamond is identified for tracking purposes, and then follows the diamond through color and clarity grading, gem identification, and laser inscription, among other services.  It concludes with the printing of the report and an interactive explanation of each term.