Mumbai Polished Market Shows Signs of Cooling

(IDEX Online News) – The Mumbai polished diamond market is showing some signs of cooling down after the burst of activity and strong prices prior to the Hong Kong show. One of the reasons for the current situation is liquidity concerns.

Demand seems to have fallen off and polished prices show signs of softening. Given the rough price hikes by all the major mining firms, there is now an element of caution in the Mumbai market. Traders worry whether the higher rough prices can indeed be passed on to buyers.

At the same time, there is a great deal of enthusiasm for the upcoming India International Jewellery Show (IIJS), which kicks off on August 4 and therefore no drastic drop in prices are expected.

Industry watchers are cautioning that a further slight softening in prices is very likely. Already, market leaders in the larger size goods have reduced polished selling prices a little and all across the board, there is more inventory visible in the market.