FOCUS 焦点 JNA November/December 2024 | 11 Damien Cody, president of the International Colored Gemstone Association (ICA), said sluggish demand for luxury items in 2024 had adversely affected the jewellery supply chain. “While jewellery carries a significant emotional, personal and cultural meaning, it is a discretionary purchase by its nature, so sales are heavily influenced by financial circumstances,” remarked Cody. Inflation and high interest rates may have played a role in people’s decision to cut back on non-essential spending such as jewellery. For businesses to thrive, consumers must feel both “confident and happy,” he said, noting that the global financial and political climate “has not been conducive to robust sales of jewellery.” For his part, Dvash explained that current headwinds are part of a “recovery process” for the industry. “It has been painful, but it was essential. The industry will grow from these challenges,” he noted. Trends With Chinese demand on the downtrend, the US remains a beacon of hope for the diamond trade. According to Dvash, the fastest-moving products in this market are round and fancy shaped diamonds of F to H colours and VS to SI clarity grades. Diamond prices are likewise stabilising, partially due to De Beers limiting the supply of rough diamonds to buyers and consolidating Sights. Several industry players have also started collaborating to promote natural diamonds to younger buyers and emerging markets. In the coloured gemstone trade, finer goods and rare coloured gemstones continue to command high prices, according to Cody. Gemstone prices have likewise become more stable, thanks to improved production post-Covid. Cody expects prices to return to more reasonable levels in 2025. Markets other than China are also fuelling demand for coloured gems. He noted growing interest from buyers in India, Taiwan, Korea, Singapore, the Philippines, Indonesia and Australia at the September Fair in Hong Kong. seeing a 17 per cent decline. WGC described it as “the weakest second quarter since 2020, when jewellery demand felt the worst impact of the pandemic.” First-half gold jewellery demand fell 10 per cent year on year. Jewellery retail sales in Hong Kong likewise lost their initial lustre, recording a 12.8 per cent drop in the first half of 2024 due to fluctuations in consumption patterns and a strong Hong Kong dollar. China's jewellery sales were down, too, falling 7.8 per cent year on year in September and 3.1 per cent during the first three quarters of 2024, reflecting muted domestic demand amid continued economic woes. The diamond sector was particularly hit hard, with De Beers’ interim 2024 results showing a 20 per cent downtrend in rough diamond sales to US$2 billion from U$2.5 billion in June 2023. Citing continued oversupply in the market, De Beers opted to combine its August and October 2024 Sights. A year of adjustments Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB), described 2024 as one of the most challenging years for the diamond industry in the past 30 to 40 years, with difficulties such as excess supply being felt in markets across the globe. Uncertainties in China, which is a major market for diamond companies in Asia, have also dampened global demand, he continued. “Demand for diamonds was down in general,” noted Dvash, adding that in some major markets, including the US and Australia, increased sales of lab-grown diamonds made a dent on the natural diamond business. Nishith Mehta, vice president of fine jeweller Varsha Inc, said lower demand for natural diamonds resulted in a drop in both prices and sales volumes. Lab-grown diamond jewellery, for instance, is becoming more mainstream and has found favour beyond the bridal jewellery category. “This change is happening faster than expected, especially as labgrown diamond prices are falling quickly,” remarked Mehta. US$979.5B to US$989B 9,795亿至9,890亿美元 Projected holiday spending in the US by end-2024, according to the National Retail Federation 美国零售联合会预测2024年年底美国假日购物季的消费额
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