Jewelers Push Diamond Sales as Gold Falls

The Economic Times reported that although the price of gold continues to fall, India’s weak rupee has not allowed jewelers to lower their prices for gold jewelry. As a result, they are pushing sales of diamond jewelry that contains less gold.

As quoted in the market news:

Several jewellers, including Gitanjali, Orra, C Krishnaiah Chetty and Popley & Sons, say they plan to hard sell diamond jewellery and innovative products that will ensure value addition of 25-30%. Although this may hurt sales to an extent, the change in strategy is attractive as the margins in gold are much lower – about 6-14%, the jewellers said.

‘As a jeweller we do not want to lose customers. So we have decided to push diamond jewellery with less gold content and also offering entry level products which have low labour charge. So we are reorienting business strategy for the time being to survive,’ said Rajiv Popley, director of Mumbai-based Popley & Sons.

Click here to read the full article from The Economic Times.