“American youths are going to splurge on diamonds”
Gems and Jewellery Export Promotion Council (GJEPC), the apex body of diamond industry, expects polished gems exports to increase by at least 15 per cent to the United States under the presidency of Donald Trump.
GJEPC chairman Praveen Shanker Pandya said, “It is believed that under the policy drafted by the President-elect of the United States Donald Trump, more jobs would be created in America. This will indirectly translate into more spending by Americans on luxury goods, including diamond jewellery. Diamond jewellery is the most preferred commodity for American youths and they are going to splurge on it.”
Polished gems and jewellery export
Industry sources said over 60 per cent of India’s polished gems and jewellery export goes to the US, which accounts for 40 per cent of the world diamond jewellery demand. The pro-citizen policies, as promised by Trump, may well turn on the fortunes of jewellery chains across the country.
Recently, DE Beers Group CEO, Bruce Cleaver stated that the much-awaited people-centric polices of Donald Trump regime were all set to boost diamond jewellery sale a bit in 2017.
Pandya added, “America is a big market for diamond jewellery in the world consisting of more than 40 per cent of the world share. After the global economic slowdown in 2008, the market took a beating, but now it is firming up again.”
India’s polished gems exports in the last eight months till November have jumped by almost 12 per cent to $15.4 billion, while the rough imports also surged. This time around, the orders for Christmas from the US doubled compared to the last year. However, there is a big opportunity waiting for Indian diamantaires from America.
Hot picks for American consumer
Sources said lower quality diamonds processed in India are hot picks for consumers in America. Most of the lower quality diamonds are studded in the gold jewellery below 18 carats. Diamond analyst Aniruddha Lidbide said, “Small diamantaires processing lower quality diamonds have been facing tough days due to demonetization policy of Indian government. There are many small traders and manufacturers who are yet to open their account after Diwali festival. If this continues then the industry is in for yet another recession.“
