Good Reviews for JCK

RAPAPORT… The organizers of JCK Las Vegas have plenty of reasons to cheer, considering the overwhelmingly positive feedback from show participants and buyers, including the Indian attendees. Raj Dholakia of Bhavani Gems called the 2011 show “perhaps the best JCK show in the last decade. We are extremely pleased with the response received and with the orders we have managed to generate. The show has restored our confidence that the American market is taking a positive shape once again.”

Harsh Arora from Shairu Gems was equally enthusiastic. “We saw very good demand for SI to I1 goods and everything from 30 pointers up to 1 carat was doing well, too.” Commenting on the shift in venue of the Indian pavilion, Arora said, “It was quite a welcome change and the place allotted was much bigger and brighter. The power of the Indian market was felt throughout the show. One thing I would like to add is that this year, we saw a very good presence of American buyers compared to the past two years. In fact, this year, there was more demand and less supply. There weren’t too many European customers but we witnessed a healthy presence of buyers from Hong Kong.” 

Good Traffic, Good Sales

“The show started off on a high note and remained the same throughout the show,” said Anil Shah from Venus Jewels. “Our booth was located in the Diamond Plaza and the flow of visitors was high from the U.S. and India, as well as Belgium and other countries.

“As far as goods are concerned,” continued Shah, “quality goods were in demand. We witnessed healthy demand in round and fancy shapes like cushions, square radiants, princesses and pears in size of 4 carats and above with clarity of SI to I1 in all colors. In addition, we saw good demand for rounds, cushions and princesses in 3 carats and less, with clarity of VS to SI in D to F colors. There was also a pretty decent demand in SI clarity diamond layouts. Overall, the show was great and we hope to participate again next year.” 

First Online Auction

India’s first online rough diamond auction  — by Arjav Diamonds Pvt. Ltd. — has caused quite a stir in the industry. It is widely believed that the continuation and, hopefully, expansion, of online auctions could have a very positive impact on the gems and jewelry industry in India. The auction generated $12.5 million for 3,664 carats. Of the 60 lots offered, 46 were sold.

Arjav, a subsidiary of Blue Star group, sold two big stones in the auction — the 61-carat Star of Gujarat and the 74.70-carat Star of Surat — to a diamond trading house based in Antwerp that retails in the U.S. The 120 auction participants were from Antwerp, Surat, Mumbai and Israel.

Commenting on the auction, Dinesh Navadia, president of the Surat Diamond Association (SDA), said “India is the ultimate user of rough diamonds mined across the world. Until now, the diamantaires were visiting the mining countries to purchase rough. But after the success of the online diamond auction, we would like the diamond mining companies to come to Surat and sell their goods through auctions or tender systems.”

Market Dynamics

The price of rough is becoming a serious matter and if the shortage of rough continues, the industry could once again be faced with a mismatch of demand and supply similar to that experienced in 2008. “The only alternative I can see is exploring opportunities to discover new mines or finding means and ways to extract more rough from the existing mines,” said Rajiv Jain, chairman, Gems and Jewellery Export Promotion Council (GJEPC). He noted that “the Zimbabwe issue too needs to be resolved soon,” referring to the continued embargo of Zimbabwe diamond shipments pending a resolution of human rights abuse charges by the Kimberley Process Certification Scheme (KPCS). 

“The shortage of rough is to be taken seriously to avoid any hiccups later,” said Jain. India has plenty of reasons to worry because Surat may soon face a serious threat from China with regard to getting a direct supply of rough diamonds from Zimbabwe. That’s because Anjin Investments Pvt. Ltd. from China is expected to become one of the biggest diamond miners in Zimbabwe and the Chinese government has assured the Zimbabwe government of its complete support to ensure that the country’s diamonds are sold without any strings attached to them. Dholakia said that “if the Zimbabwe rough is allowed to enter the market, we can expect some stabilization as the demand for polished in the domestic, as well as international market, is very good.”

Still, more is needed. “The government has to get involved in helping with the sourcing of rough like what the Russian government is doing,” said Dev Bulchandani, director, Diamantina Fine Jewels, “and it needs to become more active in dealing with the African countries, like the Chinese government has done. We also need to change the system related to the duty structure and allow diamond goods and jewelry to come in as consignments. This would help the industry quite a bit.”

The Marketplace

  • Polished prices continue to remain strong and rough diamonds are commanding high premiums.

  • Demand is strong for goods up to 1.50 carats across the board.

  • Manufacturers of fancy shapes are shifting their focus toward rounds to gain a price-point advantage.

  • Exports of colored stones are on the rise.

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