Wednesday, 18th October 2006 (3561 views)

Increasing impurities in Indian gold jewellery has resulted in international buyers switching to diamonds, according to a government study.

Diamond exports will rise by five per cent by April 2007 because buyers from the US, Middle East and UK are showing a preference for the Indian jewels.

The level of gold impurity in India is now in the range of 13 to 44 per cent according to the Associated Chambers of Commerce and Industry in India (ASSOCHAM).

Surat and Maharashtra are the central hubs of Indian diamond exports and account for 40 per cent of domestic diamond jewellery export.

Previous government restrictions on the jewellery export market have made their mark on the industry but gold jewellery exports are now encouraged.

Therefore the import rate of gold bars to India has gone up this year as jewellery makers craft designs ready for export.

Shreyansh Kapoor, vice president of Kashi Jewellers, said: "Gold has traditionally been a safe investment option. But keeping in mind the erratic nature of the bullion market, we can see a definite shift in the consumer buying trends."

According to Mr Kapoor the price of a good diamond always appreciates at the rate of about five to seven percent per year.

 

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