Mumbai: The gold and diamond jewellery business is likely to be negatively impacted in short-term following rising prices, depreciating rupee and geopolitical tensions between the US and China, according to a report.
The report further said the jobs in the gems and jewellery industry, which employs a significant number of people, would also be negatively impacted in case of any continued slowdown, especially in exports.
Gold prices: Currently, gold prices are ruling at $1,281.12 an ounce while in India standard gold was at around Rs30,765 per 10 grams, the report said.
Even as the medium-term prospects remain steady due to overall economic growth and a greater proportion of middle-class consumers, in the short-term, geopolitical tensions, mainly between the US and China would continue to impact the diamond sector, while rising prices and falling rupee would weigh negatively on the gold jewellery segment. (Care Ratings)
Overall decline in exports in May
- The gems and jewellery industry in May 2018, witnessed a double-digit drop of 11% in exports. ‘Care Ratings, quoting industry body Gem Jewellery Export Promotion Council (GJEPC),’ said the exports were mainly affected due to sharp decrease in gold medallions, bars and silver jewellery.
- Gross exports of silver jewellery declined to $43.2 million in May compared to $746.6 million in the same month of 2017
- Similarly, gross gold medallion exports reached $0.1 billion compared to 0.5 billion, a drop of 88%.
- However, cut and polished diamonds and gold jewellery supported the overall exports in May, the report concluded.