Rising Gold Puts Pressure on Jewelry Exporters
Source: PTI (4/17/11)
"As jewelers switch more and more from gold to silver, 'hybrid' pieces are finding renewed popularity."
"Exporters are absorbing high input cost, which has left them with a wafer thin margin," Gem and Jewelry Export Promotion Council (GJEPC) Chairman Rajeev Jain said.
This apart, to maintain demand, "exporters are trying to push silver jewelry. For that they are making designer jewelry in white metal which otherwise was made in gold only," added Jain.
"Out of every 700 jewelry items, around 500 pieces are being crafted in silver these days. Silver prices are also rising but they can't match the yellow metal's rally," he said.
Jewelers are increasingly opting for making ''hybrid jewelry''—a mix of gold and silver metals in equal proportion. "It not only helps in keeping a check on prices but also produces trendy jewelry items," said Sara Jewels Managing Director Ajay Kala.
However, this ''gold rush'' is not likely to impact the growth of gems and jewelry exports.
The council closed this fiscal year with a growth of 30% over the last year. Emerging strongly from the global recession, it has clocked exports of around U.S.D 28 billion which is around 15% of the country's total exports of U.S.D 200 billion.
"The U.S. is still the biggest market for us. We have been able to increase our share in the U.S. market from 26% to 34%," said Jain.