New Document top_band
 
Business Standard

Use of gold in diamond jewellery increases

Related News

The unabated depreciation in the rupee has forced manufacturers and exporters to change the content mix of ornaments in favour of gold, to keep the price of finished products within consumers’ reach.

After hitting a lifetime record at 56.225 intra-day, the rupee on Wednesday at 56 against the dollar, the fifth consecutive day’s decline. It has depreciated 24 per cent in the past year and 14 per cent in three months. Analysts forecast it to dip further.

Both, gold and diamonds are imported, but the latter is costlier.

“Whenever the price of raw material increases for whatever the reason, the product mix changes. To adjust for gold price increase, jewellers use lesser caratage of the yellow metal. For diamonds, its size is reduced in order not to raise the overall price of jewellery items,” said , vice-chairman of the Gems & Jewellery Export Promotion Council.

The content mix in the average jewellery item has changed significantly in three years. Three years ago, around 75 per cent of the cost of diamond contributed to the overall price of the ornament, which has reduced to 60 per cent now. Against that, the use of gold content has gone up from 25 per cent three years ago to 40 per cent now.

“The product mix is likely to go further in favour of gold if the current trend continues for some more time,” said , joint secretary, Gujarat Heera Bourse, and a veteran diamond jewellery exporter based in Surat.

According to , director, Popley & Sons, a city-based jewellery manufacturer and exporter: “In diamond jewellery, consumers prefer to focus primarily on the diamond piece, which should shine and look bigger. Hence, the use of gold remains immaterial, which gives liberty to the jeweller to tweak the overall product mix.”

Total gem & jewellery exports from India were $42,839 million (Rs 2,04,823 crore) in 2011-12 as compared to $42,995 million (Rs 1,95,735 crore) in 2010-11. Though in dollar terms there is a marginal drop of 0.4 per cent, exports mark an increase of 4.6 per cent in rupee terms. The sector accounted for 14 per cent of India’s total merchandise exports in 2011-12.

Read more on:   
|
|
|

Read More

Asian gold up, but set for worst May performance in 30 years

Gold rose back above $1,570 an ounce on Thursday as expectations of an Irish vote in favour of Europe's fiscal pact lifted the euro, but this month's ...

Quick Links

 

Market News

FIIs may still buy around $135 billion of stocks in Nifty: UBS

Says markets may consolidate after the run up but significant downside may be limited

PSU divestment hopefuls outperform markets

Stocks like BEML have risen as much as 300% in the past one year

Palm oil up 0.4% on rising demand

Oil for delivery in July edged up by 0.26%

Silver up 0.5% in futures trade

Metal for delivery in far-month December traded higher by 0.29%

Mentha oil falls 0.58% on profit-booking

Oil for delivery in the August traded lower by 0.48%

Back to Top