Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

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Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

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The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

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De Beers’ GemFair ropes in more than 160 Sierra Leone artisanal miners

De Beers inaugurated its GemFair pilot programme in Sierra Leone’s Kono District with 14-member mine sites in 2018 to create a secure route to market for ethically sourced artisanal and small-scale diamonds. GemFair programme manager Ruby Stocklin-Weinberg...

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Consumers Shift to Local Retailers to Buy Gold Jewelry

09 april 2014

Companies such as Titan, which weaned customers away from small stand-alone jewelry stores with the promise of purity, honesty, superior design and standardization, have faced the brunt of gold price volatility and curbs on imports. The result has been a lower price in local stores, Rapaport reported citing The Mint.
"Buying from Tanishq was becoming very expensive, whereas my local jeweler is giving me very good deals," said Suchita Bhanushali, a 34-year-old professional who has switched to buying her jewelry from a smaller jeweler, rather than the Titan brand store.
Titan's management, however, says it has not noticed a shift in buying patterns, adding that smaller unorganized shops are more susceptible to the volatility in the gold market.
"The supply side is not impacting demand; it's the weak consumer sentiment," said Sandeep Kulhalli, the vice president of marketing and retail at Titan, adding that a slowdown in demand due to weak economic conditions has impacted all jewelry companies.
"These restrictions have impacted the organized retailers much more than the unorganized channels," said Kulhalli.
For more modern firms, the procurement through official channels has caused a differentiation not only with local jewelers, but also with other international jewelry retailers, according to Vikram Raizada, the executive director and CEO of Tara Jewels Ltd., leading to a loss in sales from non-resident Indians as well, who are a significant part of the business.
"In the gray market, the jewelry will be sold at $498 (INR 30,338) per 10 gram and in the organized showroom, with value-added tax (VAT) and all taxes (including octroi), it will be  $511 (INR 31,120) per 10 gram," said Kumar Jain, the governing board of director at All India Gems and Jewellery Trade Federation, while explaining that the price of gold is generally lower in small jewelry shops because the quality and sourcing is not guaranteed.
The lower base price of gold, along with lower making charges, by smaller shops could also be swinging demand away from organized firms.