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Quite the opposite, demand for plain gold jewelry has picked up in West Asia and Australia, particularly as a secure haven asset at a time when geopolitical tensions are rising.
India’s complete exports of plain gold jewelry in December 2023 stood at Rs 4,983.6 crore, up 82.17% as in comparison with Rs 2,735.62 crore a yr in the past. Nonetheless, exports of minimize and polished diamonds fell 32% year-on-year through the month.
“Except the Fed cuts the speed, the restoration of diamond gross sales within the US is unlikely. However plain gold jewelry exports will go up because it (gold) is seen as a hedging device through the time of danger,” stated Vipul Shah, chairman, Gem & Jewelry Export Promotion Council (GJEPC).
Since March 2022, the Fed has elevated charges 11 instances to curb inflation, which had surged on the quickest fee in many years.
The US accounts for nearly 50% of the full diamond exports from India. Within the first 9 months of 2023-24, India’s complete exports of minimize and polished diamonds amounted to Rs 98,638.48 crore, down from Rs 1,32,075.49 crore a yr in the past.“It’s not solely the Fed fee that’s hurting the sentiment of US shoppers. Elections are additionally going to be held within the nation, which is impacting the gross sales of diamonds. There isn’t a excellent news general available in the market,” stated Colin Shah, managing director, Kama Jewellery.He stated the demand scenario within the US is not going to enhance for the whole 2024.
On the identical time, the Israel-Hamas and Russia-Ukraine wars have spurred demand for plain gold jewelry.
“Gold has change into a secure haven asset now. Additionally, Indian jewellers are reaping the advantages of the Complete Financial Partnership Settlement with the UAE, resulting in a surge in exports,” stated Vipul Shah of GJEPC.
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