Correction of prices for diamonds and diamonds would be a positive development for the Indian diamond industry, which is currently experiencing a liquidity crisis.
In addition to reducing opportunities to raise funds, price correction is also facilitated by the market's overstocking, which will soon cease operation for almost a month due to the beginning of the annual Diwali holiday on October 20.
"The prices for diamonds and diamonds are likely to decline by 5% -10% amid a decline in demand and a trend towards an increase in supply." The demand for diamonds in world markets is also low, so Indian diamantaires are waiting for difficult times, especially in the short term. we hope that the holiday season, which lasts until December, can contribute to some increase in export orders, "said Vipu Shah, chairman of the Gems and Jewelery Export Promotion Council (GJEPC) l Shah).
In his view, the liquidity crisis that has started, which is detrimental in the short term, may in the future strengthen the Indian diamond industry, as natural selection will take place during the crisis, which will result in weak players leaving the market.
In addition, Shah said, the crisis will make diamantaires more disciplined in matters of maintaining and managing stocks of products.