Hong Kong Show ‘Phenomenal’ for Diamonds

(IDEX Online News) - The 2011 March addition of the Hong Kong International Jewellery Show was a smashing success, as far as the diamond industry is concerned. Prices were high, demand was strong, traffic was larger than usual and the mood was good. White goods in high clarities in sizes of 1/3 to 3 carats were “on fire,” especially the three caraters.

With a record 37,000 buyer turnout, the show left many exhibitors without any goods by the end of the show. With one exception - round 4 carat goods - every other item had very strong demand, allowing wholesalers to command high selling prices. “The prices are pretty high, nothing cheap, but the buyers paid,” one trader told IDEX Online.

Most of the goods were bought, it seems, by Indian buyers, though many items were purchased by buyers from China, Japan and even the U.S.

The Chinese seemed most interested in 1 ct+, GHI / VVS goods. Strong demand was also noted for 1-5 ct (skipping 4 ct), D / VVS rounds. As for the four caraters, some manufacturers simply polish them down to 3.88 carats to sale them. Eight is considered a lucky number among the Chinese.

Another trader told us that L-O color goods, sizes 1 ct+ in VVS-SI clarities did very too, also in pointers (0.20-0.90 ct). The strong demand for fancy cuts was very clear at the show, and today they are selling at the same price as round cuts. Hearts in particular were in demand and ten pointers are selling at higher prices than rounds, doubling in price during the past year, according to a Hong Kong based wholesaler.

The pique goods were sought after by U.S. and Japanese buyers but mostly by Indian traders.

Semi-precious gems, notably rubies and sapphires, were reportedly as popular as diamonds. Finished jewelry sold very well, though the jewelry booths were not as busy as the loose diamond booths.

With growing economies and new jewelry shops opening at a growing rate, the need to stock stores in China and India are offering wholesalers the back wind they sought after since mid-2008, as the Hong Kong clearly proves.