Despite reports from numerous diamond retailers and diamond mining companies that the diamond market is recovering in full force, the recent Hong Kong Jewelry & Gem Fair closed with many disappointments.
Hopes were high that the Hong Kong gemstone and jewelry show would help boost loose diamond and diamond jewelry sales before the winter holiday season, but many exhibitors reported overall thin traffic and resistance to higher prices.
The gemstone and jewelry show which opened on Tuesday, September 14, 2010 featured more than 3,200 exhibitors and was expected to bring in over 40,000 visitors. The show was held in two venues: The Asia World Expo lasting from September 14-18, and the Hong Kong Convention and Exhibition Center, lasting from September 16-20th.
The show hosted exhibitors of raw diamonds, semi-finished gemstone, precious metal and diamond jewelry, jewelry tools and jewelry packaging. According to reports, most visitors hailed from India, Bangkok, China, USA, Taiwan and the Philippines.
Within the first two days, exhibitors already noticed a high resistance to prices. The International Diamond Exchange reported that, after the first day of the show one long time trader already estimated the diamond price disparity at nearly 4%.
Retailers found that most diamond and jewelry buyers were holding out on purchases, shopping around for the best diamond price in hopes of pressuring sellers and lowering price tags.
An Israeli-based diamond manufacturer told Rapaport Networds Diamonds.Net that, “…there are fewer visitors than we expected and less movement of goods but you can still make sales.”
Many in the diamond industry believe that in order to keep rough diamond and polished
diamond prices strong, wholesalers will need to persuade their retail clients to raise prices which won’t be an easy task.
Other diamond industry experts voiced concerns that De Beers, Alrosa and Angola will continue to increase their diamond production forcing manufacturers to buy more and pay more for rough diamonds.
In addition to the disappointing sales, within the first day approximately $1 million worth of jewelry was stolen from the show, notorious for jewelry thefts. Two men have already been arrested by police and are suspected of replacing a seven carat diamond, estimated at $450,000, with a fake.
A $500,000 emerald necklace was also stolen as were $25,000 of pearls in two separate incidents.
