Good Start of Business at the Opening of HK June Show

Diamond traders report solid trading during the opening day of the June Hong Kong Jewellery & Gem Fair. Demand for polished diamonds typical of the region is good, and prices firm.

Organizers earlier concerns that the ongoing spread of swine flu (Influenza A HINI), may keep traveling buyers from arriving at the show proved to be premature.

Traders from Belgium and Israel exhibiting at the show reported that demand for goods weighing 1/4 - 3 carats, in clarities SI and better, HIJ colors, are in high demand and prices are firming up.

In larger sized goods, traders say that 3-5 carat goods, VS and SI1 clarities in GHI are also doing well, with a particular interest in SI/DE goods. One trader acknowledged that prices for these goods are not very high, but are “sufficient to sell and move on,” meaning sellers can use the takings to replenish their stocks and make a profit.

One carat goods, VS-VVS, GHI, are another category that is in demand. However, a diamond manufacturer at the trade show told IDEX Online that the price difference between manufacturer expectations and what buyers are willing to pay could be as wide as 7-10 percent. If trading is going well in these goods, undoubtedly, both sides are willing to compromise.

Indian buyers appear to have a large interest in buying polished diamonds in the wholesale market, with exhibitors reporting an exceptionally large number of Indian buyers walking the halls, willing to do quick cash purchases.

There is nothing exceptionally surprising about these demands. All the mentioned goods have been doing well for months. The good news is that after two mediocre shows for the diamond industry - Basel and JCK Las Vegas - traders are happy to come with goods, and see sales happen.