Industry Outlook with David Brough: April

01 May 2024

By David Brough

Istanbul Jewelry Show impacted by strong gold prices

ISTANBUL - The April 17-20 edition of Istanbul Jewelry Show saw strong turnout from buyers including from the UK, with the main talking point being the impact of buoyant gold prices.

Trade sources said privately that recent upside volatility in gold prices, which hit a record high on April 12 against a backdrop of rising geopolitical tensions in the Middle East, had sidelined some wholesale buyers.

Attendance was high, but trade sources said visitor numbers may have been impacted by uncertainty in the gold jewellery market caused by the gold price surge to successive all-time highs in recent months.

Lately, the gold price has come off from near record peaks as risk premiums over tensions in the Middle East eased, but some analysts expect gold prices to be strongly underpinned this year, especially if U.S. interest rates start falling.

Gold prices tend to perform better in a climate of falling interest rates because bullion bears no yield.

Turkish jewellery exports are targeted to rise by around 8 per cent to USD$8.2 billion in 2024, from USD$7.6 billion in 2023, according to the Jewellery Exporters Association (JTR). A higher average gold price in 2024 would help the JTR to achieve that goal.

The Istanbul Jewelry Show (IJS), staged twice a year, is an export showcase for Turkish-manufactured gold, silver, diamond, and gemstone-set jewellery, as well as loose stones, machinery, and accessories.

A handful of UK-based gold jewellery wholesalers attended the event, including those who primarily serve the 22-carat British Asian retail market.

IJS, where more than 1,500 brands from 16 countries including Turkey exhibited, hosted more than 30,000 visitors from 139 countries in an area of 70 thousand square metres, organisers said.

The show reported an 8 per cent increase in international visitors in April 2024 compared to the March 2023 edition.

Design innovation

Among the special features of IJS is a Designer Club showcasing Turkish jewellery designers who have expressed exceptional creativity and innovation in recent years, sometimes influenced by Turkish heritage.

Turkey has a centuries-old tradition of jewellery craftsmanship centred in areas such as around the Grand Bazaar in Istanbul.

The IJS fair, organised by Informa Markets Jewellery, has consistently promoted Turkish jewellery design creativity.

Turkish jewellery design flair and branding efforts have stepped up markedly, intensifying competition with Italian - so-called “Made in Italy” - manufactured gold and silver jewellery exports.

Shankar Ramnathan, a London-based gold and diamond jewellery wholesaler and director of jewellery supplier Diarossa, who was one of the UK-based wholesalers visiting the show, said,

“Turkey's jewellery industry has undergone a remarkable transformation in recent years, distinguishing itself through its unique designs and advanced manufacturing capabilities.

“Traditionally, Italy has been renowned for its exquisite jewellery craftsmanship and design aesthetics. However, Turkey has emerged as a formidable competitor, offering a diverse range of innovative designs that blend traditional Turkish motifs with modern trends."

Source: David Brough (Jewellery Outlook)