The Week On Jewel Market | 19 JAN 2023 |

JEWEL MARKET The week on

Risk of recession,

Russia sanctions eating into Surat’s diamond industry

Surat’s diamond cutting and polishing industry that employs nearly 5 lakh workers associated with it, is experiencing a crisis, especially due to the ticking timebomb of a looming global recession risk and also the Russia-Ukraine crisis that has resulted in sanctions against Russia.

A report in The Indian Express said that nearly 5,000 diamond workers have been furloughed since last year November. “We have got information from 24 small and medium-sized factories that have not opened after Diwali in October 2022. The actual number of layoffs could be more. Many units are also scaling down working hours,” Ranmal Jiliriya, president of the Surat Ratnakalakar Sangh or diamond workers’ union was quoted as saying.

Almost 90 per cent of diamonds that are mined in the world are cut and polished in Surat for either setting up in jewellery or selling them loose on the international market. So why are workers being laid off? Surat’s diamond factories get a lion’s share of the gems from Alrosa, a Russian diamond mining and trading company and amid sanctions on Russia by the US, UK, Canada and other prominent western nations, the

diamond supplies have reduced to a meagre 25-30 per cent.

Even though the diamond workers in Surat are somehow able to source rough diamonds but the sanctions have caused prices to soar and the supply chain has been disrupted. As such, the workers at the nearly 5,000 units of diamond cutting and polishing in the Gujarat city are living in constant apprehension of losing their jobs. The workforce mostly comprises migrant workers from Saurashtra and North Gujarat. Provisional data from the Gems and Jewellery Export Promotion Council has shown a sharp drop into imports of rough diamonds during April-November 2022. At 853.95 lakh carats, the import

has fallen down to almost 24 per cent from 1,122.32 lakh carats for the same period in previous year.

In a recent development amid the ‘diamond crisis’ in Surat, the Gem & Jewellery Export Promotion Council (GJEPC) has urged the Centre to allow sale of rough diamonds in Special Notified Zone through Safe Harbour rules by diamond companies.

“At least 20% of the rough diamond traded in the world will be shifted to SNZ in India due to the level playing field given to the foreign mining companies,” GJEPC Vipul Shah said.

The week on

JEWEL MARKET

QUOTES OF THE WEEK

IIJS Signature Shines Bright: An Estimated Rs 30k Cr Orders Booked

Vipul Shah, Chairman, GJEPC

“The year’s first, Green Expo and biggest-ever IIJS Signature got an encouraging response from domestic gem & jewellery business entrepreneurs as well as international buyers despite several global headwinds. International buyers showed keenness to source gem & jewellery from India after the recent successful FTAs with the UAE and Australia.” He added, “Genuine serious buyers added to the momentum of business generation even as enthusiastic Indian jewellers presented their best-ever creations of the last two years. Indian trade was buoyed by strong double-digit growth posted in Plain Gold jewellery exports in December 2022 y-o-y and for AprilDecember 2022 period. Overall, the sentiment is quite bullish.”

There were more than 20000 Trade Visitors, of which 800 were International Visitors from 60 countries, including the USA, Canada, UK, Hong Kong, Middle East, Europe, Bangladesh, Nepal, Russia, Thailand, and Egypt had visited the show.

2500 stalls and 1300 Exhibitors spread over 6 Halls

The recently concluded, IIJS Signature 2023, this years first & largest jewellery trade show, has booked orders worth Rs. 30,000 crore, as per the initial estimates by The Gem & Jewellery Export Promotion Council (GJEPC). The 15th edition of IIJSSignature, the biggest-ever and first-ever Green Expo saw several brilliantly designed gem & jewellery creations from diverse parts of the country over the course of five days.

GJC members and the Industry stakeholders mets for the Hallmarking issues.

The members of Expert Committee and Advisory Committee had a meeting with Secretary, Consumer Affairs for the Hallmarking issues.

GJC and the Industry stakeholders conveyed the pending concerns and also requested for a substantial time for the discontinuation of the old marking.

GJC also submitted a detailed representation and we are hopeful for a positive response to our concerns.

“Stay informed and stay connected with us.”

Mr.

The week on

JEWEL MARKET

Union Budget 2023-24:

GJEPC seeks Jewellery repair policy to make India a Global outsourcing service centre & hub

Seeks

Reduction in Import Duty on gold, silver and platinum to 4% for a healthy and transparent industry, decrease the blockage of working capital of exporters

National, 12thJanuary 2023: The Gem & Jewellery Export Promotion Council (GJEPC), the apex body of gem & jewellery trade in India, has urged the Government of India tointroduce a Jewellery Repair Policy to make India a global outsourcing service centre.This will increase India’s market share in the global jewellery repair market estimated to grow to around US$ 5.75 billion by 2026. At present, India has a miniscule market share of just 3% with a sale of US$ 196.8 million while the U.S. has around 30% of the market, followed by China with a share of 9.2%.

Mr. Vipul Shah, Chairman, GJEPC, said, “Keeping in view India’s inherent skill in making handmade jewellery, we believe that India will outperform in jewellery repair sector also. With this Policy, India has the possibility of taking 10-20% of the world market share, which will bring in billions of dollars of business with high employment potential.”

The introduction of repair policy will result inrenowned brands setting their service centre in India which is currently in Dubai, Turkey, Hong Kong, etc.Import of all types of jewellery and their repair will involve technological upgradation of jewellery manufacturing in India.Also, this will help large exporters to service their customer’s requirement for repair from India only which they are now forced to do abroad.

For the Union Budget 2023-24, GJEPC has recommended a series of suggestions across verticals of gem & jewellery (G&J), which would help in propelling the exports from the sector and achieve the goal of USD 55 billion in G&J exports by 2025.

GJEPC has sought reduction in Import Duty on gold, silver and platinum to 4%asa prime recommendation in their wishlist to the Government of India. GJEPC believes that this import duty is draining off the capital from the exporters and is the generator of economic malpractices of all kind.

The other key request by GJEPC is to allow

sale of rough diamonds in Special Notified Zone (SNZ) through Safe Harbour rule by diamond companies. This will facilitate trade of rough diamonds to be done with Indian SMEs by the Diamond Mining Companies.As the safe harbour rate of income tax on the sale turnover from SNZ could not be determined, no sale has taken place at SNZ and all diamonds are going back to Dubai/Antwerp, billed and then exported back to India. At least 20% of the rough diamond traded in the world will be shifted to SNZ in India due to the level playing field given to the foreign mining companies. The Indian Government will be able to collect annually additional tax revenue of USD 3.48 million. MSME manufacturers of CPD, will save their margins. Russian companies may directly auction their roughs from SNZs and Indian manufacturers may explore buying from them through rupee route.

“Stay informed and stay connected with us.”

The week on

JEWEL MARKET

Gold prices seen rising towards record highs as rate rises near end

Gold prices are expected to rise towards record highs above $2,000 an ounce this year, albeit with a little turbulence, as the United States slows the pace of rate hikes and eventually stops increasing them, according to industry analysts.

Spot prices of the precious metal have shot above $1,900 an ounce, surging by about 18% since early November as inflationary pressures recede and markets anticipate less aggressive monetary policy from the U.S. Federal Reserve.

Fast-rising interest rates hammered gold prices last year, kicking them as low as $1,613.60 in September from a high of $2,069.89 in March – just shy of a record peak in 2020.

Higher rates lifted returns on bonds,

making non-yielding gold less desirable for financial investors, and pushed the

the yellow metal, pushing gold above $2,000/oz in the coming months,” said analysts at Bank of America.

With less pressure from the dollar and bonds, investors are likely to buy bullion as a hedge against inflation and economic turbulence, said WisdomTree analyst Nitesh Shah, adding that prices could easily move above $2,100 an ounce by year-end.

Gold is traditionally seen as a safe place to store wealth. “The risk of central banks overdoing it and pushing their economies into recession is high,” said Shah.

dollar to its strongest in 20 years, making dollar-priced gold costlier for many buyers.

The weakening U.S. currency and bond yields “will become macro tailwinds for

Speculators who in November were betting gold prices would fall have amassed a net long position in COMEX futures of 8.3 million ounces of gold, worth $16 billion, helping push up prices.

IAJA Offers Expert Vintage

Jewellery Assessment Service

The International Antique Jewelers Association (IAJA), a consortium of global antique and period jewellers committed to elevating the understanding and appreciation of irreplaceable collected treasures, launched their new IAJA Expertise service.

The bespoke, first-of-its-kind service provides a personal assessment of a heritage item of jewellery by the world’s leading experts, culminating in a signed “Letter of Expertise” which details the characteristics of the item in the trusted expert’s professional opinion.

Olivier Bachet, Director of IAJA Expertise and a Member of France’s Compagnie Nationale des Experts, stated, “There is a high demand and great need for swift, independent, and unbiased assessment of heritage, antique, and collectible fine jewellery. This bespoke and personalized new service by IAJA helps consumers, collectors, dealers, even curators to be certain that the item they are acquiring is genuine with regard to signature and period. A signed Letter of Expertise may also increase the value of an item. I have seen a jewel multiply in value by as much as ten times following my expert opinion.”

The IAJA has recruited a distinguished international team of trusted experts specialising in jewellery, precious objects and collectibles.

The team consists of former curators, archivists and directors from the world’s inimitable jewellery brands, including Cartier,

Van Cleef & Arpels, Bulgari, Tiffany & Co. and Harry Winston. his new service includes reliable consultation and an expert assessment based on careful examination and scrupulous research of an item. Upon successful completion of the process, a signed Letter of Expertise will be offered declaring the item an original in the expert’s opinion.

informed and stay connected with us.”

JEWEL MARKET

WTJS - Wedding Treasure Jewellery Show taking place on 14th & 15th March 2023

Dear Jewellers,

We are pleased to invite you to participate in the WTJS (Wedding Treasure Jewellery Show) a premier event for the jewellery industry. The exhibition will take place at THE ASHOK HOTEL, NEW DELHI on 14TH & 15TH March, 2023.

As one of the leading companies in the industry, we believe that your presence at the exhibition would greatly enhance the experience for all attendees. The exhibition will bring together a diverse range of exhibitors, including manufacturers, suppliers, and designers, creating a unique opportunity for you to showcase your products and connect with potential customers and partners.

In addition to the opportunity to exhibit your products, we also offer a variety of sponsorship and advertising opportunities, which can help increase your visibility and reach among attendees.

If you are interested in participating in the exhibition, please let us know as soon as possible. We will be happy to provide you with more information and answer any questions you may have. We look forward to seeing you at the WTJS.

Please Feel free to connect for any information +91-7291928883

The week on

JEWEL MARKET

with Reliance Jewels Unlock diamond dreams

It’s time to experience the unparalleled sparkle and shine with Reliance Jewels “Dream Diamond Sale”. Reliance Jewels is committed to offering the best possible shopping experience to its customers through its focus on unique design, unique collections &various exciting offers. With the Dream Diamond Sale, the brand is offering its patrons an opportunity to experience a wide range of Diamond Jewellery Designs with exquisite craftsmanship. With sparkling diamonds and designs hand-crafted to perfection, the diamond collection showcases mesmerizing designs in necklace sets, pendant sets, bangles, bracelets, rings and more that are sure to bring the wow factor to any special occasion. Patrons can shop and enjoy unbeatable savings on the diamond Jewellery collection during the Dream Diamond Sale with an exciting discount of Up to 25% off on Diamond Value. The offer is Valid till 14th February 2023 only, T&C apply. From Contemporary designs to timeless classics, the collection has something for everyone. Each diamond piece is crafted with precision and attention to detail, making them a perfect choice for any special occasion.

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JEWEL MARKET

Celebrities stunned in Platinum jewellery at Golden Globes Awards

The 2023 awards show season was off to a glamorous start as Hollywood’s most notable celebrities showcased an array of breathtaking platinum jewellery designs at the 80th Annual Golden Globe Awards.

“Since platinum is naturally white, it enhances the brilliance of diamonds and colored gemstones, while holding these important stones most securely,” said Platinum Guild International CEO Huw Daniel. “It’s the ideal setting for celebrities to wear on the red carpet.”

Platinum jewellery is made of 95% pure platinum with minimum use of other ingredients – making it the finest metal available to us today. Platinum is the metal of choice for most red-carpet events around the world. The who’s who of the fashion and glamour world love to style their ensemble with this naturally white, precious metal from Elizabeth Taylor to Lady Gaga – they have all dressed in platinum for the red carpet.

The most prominent platinum jewellery trends at the Golden Globe Awards were dramatic earrings as seen on Selena Gomez and Hilary Swank, and statement necklaces worn by Lily James and Hannah Einbinder.

Platinum Guild International is pleased to share that leading red carpet jewellery brands such as Harry Winston, De Beers, Tiffany & Co., Fred Leighton, Kwiat, Rahaminov, Lorraine Schwartz, and Mindi Mond chose to style A-list celebrities in naturally white platinum.

Nootan Thawai named Director of Production and services for GSI

Gemological Science International (GSI), one of the largest gemological organizations, announced today that Nootan Thawai has been named Director of Production and Services for the organization.

Thawai, who joined GSI in 2011, has held several positions within GSI as the organization expanded within India and globally. In her new role, Thawai will be responsible for all production and services related to export activities. She will continue to supervise and manage production and service teams in GSI India, Hong Kong, Dubai, Israel and will work closely with the leadership teams to create new processes and procedures as GSI continues to expand its reach globally.

“I congratulate Nootan for this well-deserved promotion and I am confident that with her experience and leadership GSI will continue to thrive and expand its services globally” says Debbie Azar, President and Co-Founder of GSI. “The majority of GSI’s leadership are women, embodying GSI’s commitment to inclusive executive culture. We support women across all segments of the business, further strengthening our commitment to empowering women across our value chain.”

The first edition of JMAIIE, the one and only exclusive show for jewelry machinery and allied products / services was a winner. The show was powered by JMA Forum without whom the show wouldn’t have been possible. They stood by KNC Services right from the conceptualization till execution, every step of the project. The show received immense love from the industry across the world and especially from India. Renowned companies across the globe participated at JMAIIE. It

was indeed a huge opportunity for Indian companies to showcase their work to the fraternity. The show had created a lot of awareness via

online & offline promotions which drew people to the show in large numbers. It’s a very proud moment to share that 8000 odd hard-core, serious visitors visited JMAIIE. KNC Services and JMA Forum definitely bridged the massive need gap of the jewellery trade. The history was created and the show, JMAIIE will only grow year on year. It will become the guiding force, a calendar event for the trade. People are already queuing up to participate in the second edition which is scheduled in February 2023.

“Stay informed and stay connected with us.”