Diamond - slash in price

The $65 billion global diamond market is reeling. The price of polished gems dropped by an average of 31 percent since an August peak as the worst recession since World War II deterred buyers of luxury items like necklaces and earrings, according to diamond data company www.PolishedPrices.com. Antwerp, the world’s biggest gem trading hub, has seen exports drop as much as a third. De Beers, the largest diamond producer, slashed output by 91 percent.

People are not buying earrings, bracelets, things they can do without if they want to tighten their belts, they are still buying rings for weddings, engagement.

Wholesale diamond prices have dropped about 20 percent to 25 percent from their highs around June last year.

At the cheapest end of the market, Internet retailer Amazon.com Inc. is selling a platinum ring with a 0.5-carat diamond for $1,675, down from a list price of $3,425. The gem’s clarity is SI1 or SI2, meaning there are slight defects that normally can’t be seen by the naked eye.

Jewellery exports

India's export of gems and jewellery will regain the shine within next 6 months.

Mehul Choksi, managing director of Gitanjali Gems, is of the opinion that earlier there was huge inventory and it is over now and the situation is improving.

Due to order cancellation and late payment from markets, the sector witnessed a decline of 18.8% in exports in second half of previous fiscal. The exports declined 30-35% during Feb-Mar 2009 compared to same period of previous year. The decline was 50% during Dec, 2008 - Jan 2009 compared to same period last year.

The export market comprises of cut and polished diamonds and coloured gems.