Closure of Antwerp Diamond Bank (ADB) will not affect Indian #Diamond Industry; #GJEPC India pic.twitter.com/7vdShe2ZXE
— Press Release Watch (@PrReleaseWatch) October 9, 2014
Closing of ADB does not have any immediate direct impact on the trade neither has it created an overnight liquidity crunch as stated in the news reports. Any International Bank while closing down provides an adequate time period for their clients for repayment of loans and does not demand an overnight settlement. In case of ADB it provides a minimum period of one year to their clients in India and similar if not more period to the clients in Antwerp and other centres which is adequate for the trade , and gives no reason to emerge in a havoc scenario as wrongly stated.
For the Diamond Jewellery industry, the mood is upbeat with the coming festive season with sales progressing as the season approaches. The industry witnesses largest sales during the period of October to December annually for Diwali and Wedding season and the Christmas, gift giving season abroad. Indian market consumes Diamonds worth US$2 billion and in no circumstances trade has offered a discount of 20% in the past, neither is expected to offer such steep drop in price in near future or resort to distress selling, as there is no reason for the same. (I think we should talk about the whole trade including exports rather than just indian domestic market)
The long term fundamental of the diamond industry remains strong and robust as there are no new major finds and the sales of diamonds growing in emerging markets of China and India. The raw material /Rough Diamond prices by DTC has gone up by 3-5% while the Russian goods have witnessed an increase of 2-5% in the recent past. This only adds to the Diamond and Diamond Jewellery prices witness an upward trend in the coming festive season and in the future.
India is the largest consumer of gold and soon emerging as the largest consumer of Diamonds globally. Both Domestic and global markets show a positive sign in the coming festive, wedding and thanksgiving season. Diamond traders are upbeat and look forward to the business in this quarter.
This statement was made by Gem & Jewellery Export Promotion Council India (GJEPC India) today.
