HK Show Opens: High Expectations, Tight Prices and Thefts

The September Hong Kong Jewellery & Gem Fair opened Tuesday, with more than 3,000 exhibitors, and an expectation for some 40,000 visitors. The first two days was marked by strong pressure on prices of polished diamonds, yet an anticipation for good trading activities.

The first of the two venues, the AsiaWorld-Expo (AWE) by the airport, opened yesterday. Exhibitors are reporting large buyers traffic at the venue and many inquiries about the goods. Despite the proximity to the emerging Chinese market, most of the buyers seem to be Indian traders.

The resistance to prices, something that many exhibitors hoped that won’t be strongly felt, is turning to be a major issue. One long time trader estimated the price disparity at 3-4 percent.

In the larger 5 and 6 carat goods, KL colors in the VS-SI quality range are most sought after, mainly by Indian buyers. J color items are somewhat less sought after. The 3 carat goods are seeing a small erosion in prices.

Toted as the largest diamond pavilion in the world with over 400 diamond companies exhibiting this year in addition to groups from the Belgium, Israel, India and the U.S., and competition among sellers is stiff. Show organizers responded to demand and greatly expanded over the years the number of exhibitors. However, as one noted, the number of buyers has not increased at the same rate. The result is a buyers market, adding further pressure on asking prices.

The Hong Kong show is notorious for its thefts, and this show is no exception. Local police reported that two men swapped a 7 carat diamond worth $450,000 for a fake on the first day of the show. In a separate incident, an emerald necklace worth more than $0.5 million was stolen.

On Thursday, the main Wan Chai location will open, and much of the traffic will shift to it from AWE. The trade show closes on September 20.