Gold-bar and rough-diamond imports into the country have declined in June 2008 owing to the rise in their prices coupled with the slowdown in the overseas sales of finished products (jewellery). Gold-bars and rough diamonds are the basic raw materials for the gem-and-jewellery sector.
The country imported 149.09 lakh carats of rough diamonds with a declared value of $1.258 billion in June, down by nearly 10% (in volume) over the previous year while gold-bar imports in value also declined at $163.83 million in June over $360.41 million, down by half (in value), according to latest figures released by the Gem and Jewellery Export Promotion Council (GJEPC).
?With the global shortage of rough diamonds and rise in gold prices, neither local nor overseas demand has shown any improvement. Many traders expect that the IIJS show in August will improve the market condition which has been dull for sometime,? a local diamond trader said.
The Diamond Trading Company (DTC) – a major supplier of rough diamonds across the globe – increased rough-diamond prices by around 10% recently. Supply shortages were expected to keep prices strong and help to lift the 2008 sales figures, sources said. The combination of the rise in value and the decline in volume in June reflected the rise in prices of rough diamonds.
The export of rough diamonds has continued to grow in the recent months. In June, India exported 3.021 million carats of rough diamonds valued at $95.53 million. Some traders are also taking advantage of the fluctuation in currency, a trader said. The net export of polished diamonds declined by 4% in volume, while the import of rough diamonds also decreased by 17% during the first half of 2008.