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Dubai: Dubai consumers are willing to shell out more to purchase expensive and branded diamond jewellery, industry sources said yesterday.
Gold is still considered a better option in terms of investment, but the aesthetic value of diamonds is gaining popularity in the maturing jewellery market. Besides, the growing segment of upscale consumers, those with ample discretionary income, is driving diamond sales up.
According to Karim Merchant, managing director and CEO of Pure Gold Jewellers, the growth rate of diamond sales has outpaced that of gold jewellery, although the latter's sales output is still higher in terms of volume.
"I can't say that diamonds have taken over the gold jewellery sales, but for sure the growth rate for diamond jewellery is higher than gold jewellery, but in terms of volume, gold is much higher," Merchant said.
The Dubai-based jewellery group reported that its diamond sales this summer rose 60 per cent over a year ago.
The increase has topped the 50 per cent total growth for all of Pure Gold's jewellery sales during the first half of 2008.
"Middle East consumers in the last five years have become more brand conscious. They are willing to pay top dollar for design. Resale value of the jewellery is still an important factor, but not so much anymore, especially for the young buyers," Merchant told Gulf News.
Rolf Schneebeli, former head of the World Gold Council, confirmed there has been a shift in jewellery preference among consumers, a sign that the jewellery market is maturing and people's purchasing power has risen significantly.
"A lot of wealth is created. We have seen more consumers coming into the market who can now afford to purchase high-end jewellery," Schneebeli told Gulf News.
He said diamonds are still not a better investment alternative compared to gold, but their artistic value is what attracts many consumers.
The number of super-rich residents in the region, those with net assets of at least $1 million, rose 8.3 per cent in 2006 to 9.5 million.
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