The surprise demonetisation of 500 and 1,000 rupee notes in India on November 8, which has impacted the jewelry sector in the last few weeks, has led Gemfields to postpone its emerald auction for two months – until February, Gem Konnect reports.
In a statement issued late last week, Gemfields CEO Ian Harebottle commented: “The majority of our customers for rough emeralds hail from India. As has been widely covered in the international media, the new demonetisation programme will require an adjustment period to allow industries and stakeholders to adapt to the new policies”.
In mid-November, it was reported that following the Indian government crackdown on “black” transactions by many businesses, jewellers among them, and the demonetisation of the 500 and the 1000 rupee notes, jewellery retailers are reporting sharply reduced customer traffic. Consumers have cancelled large bridal orders placed before the surprise demonetisation announcement, while much of the standard impulse buying has also dried up. Industry analysts say jewellers are facing a sharp liquidity crunch.
