We've been reading about the glut of melee, and here we see its effect at the Hong Kong show.
Oversupply an Issue at Hong Kong Show Feb 28, 2019 11:56 AM By Joshua Freedman
"RAPAPORT... Dealers at the Hong Kong International Diamond, Gem & Pearl Show expressed concerns about sluggish polished demand and an oversupply of goods in the wholesale segment.
Inventory moved slowly despite busy traffic at the fair, which began this week, people who attended the event told Rapaport News.
“The mood looks OK, but conversion [to sales] still hasn’t happened,” said Rahul Jauhari, senior vice president of global sales and marketing at India-based manufacturer StarRays. “Not that we’re not happy with the…result, but it could be better.”
The exhibition still produced a better outcome than the September 2018 show, when activity suffered as a result of a major typhoon and religious holidays, Jauhari added. However, continuing challenges in India have dulled trading, he noted.
A surplus of lower-value polished has spooked the market, with attendees bringing a large volume of goods to the exhibition. The number of stones on the RapNet Show Listings service, an electronic catalog of inventory, grew to a record 160,000 for the Hong Kong event, compared with the usual 100,000 to 130,000.
Worries increased this week after more than 100,000 carats of melee diamonds became available in Mumbai, driving prices of those goods down 30%, The Times of India reported Thursday. That was sparked by ... " https://www.diamonds.net/news/NewsItem. ... ong%2bShow
PinkDiamond ISG Registered Gemologist
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The economic pressure on the middle and lower upper classes are taking away buying power. With more mines coming online "oversupply of goods in the wholesale segment." is driving down the prices across the board. Real estate and gold are doing better than diamonds since the supply became; how much do you want instead of how much can you pay. Should improve performance of all the natural stones except those where the supply has new mines and areas opening. “In the midst of the current economic instability, these jewelry trade shows help brace the industry for the challenges ahead,” said Benjamin Chau... I have to assume brace means bunker up for body blows. I will say the rock and gem shows I have seen are in the same boat, more sellers than buyers with old stock liquidations driving down prices from desperate sellers.
Would not be too surprised if all the talk about manufactured diamonds is part of the downturn. The average person buying diamonds was never to sure about the nature of stones, and now with even the biggest suppliers jumping on the bandwagon of producing, the trust in them has all but vanished.
