The latest edition of VicenzaOro revealed a tale of two markets. Jewellery brands were in an optimistic mood, while many diamond dealers expressed low confidence due to recent price cuts.
The exhibition, which took place at the production hub in Italy from 6 to 10 September, got off to a quiet start. With many commenting that Italian retailers were still busy with the tourist season. And it quickly gained momentum with a large turnout over the next three days.
The bulk diamond and gemstone sections were not particularly well visited. However, the high-end and high-end jewellery and fashion brands attracted a notable volume of visitors and enquiries.
The atmosphere was «very weak,» observed a third-generation exhibitor in the diamond section, who preferred not to be named. Explaining that «traders are scared for their livelihood and have lost faith in the market».
Others expressed a more optimistic outlook. Chetan Jasani, marketing director of Komal Gems, pointed to good opportunities for business in Europe. As well as interest rates are falling and tourism is booming. «It is a good time for consumers to buy,» he said. «People in the industry are not negative. They are aware of the difficult market conditions and are careful with their purchases.».
Bhumik Gajera, managing director of Millenium Gems, noted the steady demand for packaging products and eye-catching shapes,. But he warned of destabilising supply following more price falls and lower production.
Among the recurring themes discussed were the problems arising from reduced production capacity. The shortage of specific commodities, including diamonds in the 2 to 3 carat range and fancy shapes such as hearts, concerned many traders.
The new sanctions against Russia by the Group of Seven (G7) and the measures to identify diamonds of Russian origin were not a major concern. With most assessing the issue as irrelevant. As for the rise in gold prices, the view was that it did not really affect diamond jewellery.
Brands known for their signature pieces with high gold content, such as Peruffo, had a more cautious reaction. In the minds of consumers, rising gold prices have increased the value of gold.
«We expect gold prices to continue to rise, influenced by current global economic conditions and geopolitical tensions. So there is some level of hesitancy in the market in general. But buyers had a big presence at the show,» said CEO Enrico Peruffo.
In the minds of consumers, rising gold prices have increased the investment potential of jewellery. And it could play in favour of the sector, observed Jasani of Komal.
Many exhibitors in the jewelry departments noticed that buyers had not yet ordered for the holiday season. Because the show was held two weeks earlier than usual. This was to accommodate the dates of the Bangkok and Hong Kong fairs. And it was difficult to decide on purchases in early September.
There was great interest in classic diamond jewellery and exclusive gemstone pieces. Filippo Picchiotti, general manager of Picchiotti, said that his US customers were interested in pieces in the $20,000 to $50,000 range (retail) and that tennis bracelets and diamond rings were popular.
Katia Olivucci, a designer at Giovanni Ferraris, pointed out that intricate titanium creations are trending among top American collectors. She also confirmed that orders for the celebrations would be placed after the show.
In total, the fair attracted 1,200 exhibitors and visitors from 132 different countries, according to VicenzaOro organisers. The share of visitors from Europe increased to 63,37% - up from 52% last September - led by Spain, France and Germany, while the share of visitors from Asia and the Middle East reached 21% (17% in 2023). The next event will take place from 17 to 21 January 2025.
Source: rapaport.com
