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<\/figure>\n\n\n\nWith hopes rising that restrictions may be eased in the spring, industry consultant Helen Dimmick feels that jewellery sales may be less impacted in the UK than alternative luxury spending such as travel and eating out in restaurants.<\/p>\n\n\n\n
\u201cWith the current routes to market limited to predominantly digital platforms, the performance of diamonds and coloured gemstones has plateaued during recent weeks,\u201d she said.<\/p>\n\n\n\n
\u201cHowever, with the \u2018light at the end of the tunnel\u2019 as we face a gradual reopening of physical markets, I believe the celebratory relief and pent-up demand will underpin a strong performance for the jewellery sector going forward. Especially as we anticipate other high spend options such as travel will continue to be subject to further restrictions and controls.\u201d<\/p>\n\n\n\n
For UK-based jewellery wholesalers, new rules surrounding Value Added Tax (VAT) under Brexit, Britain\u2019s recent departure from the EU, can boost trading opportunities, said Mehul Lodhiya, the GJEPC\u2019s UK representative.<\/p>\n\n\n\n
\u201cThe change in the new VAT rules is a boost to the industry as the importers are allowed to postpone their VAT payments,\u201d Lodhiya told the Mines to Market<\/em> website in February.<\/p>\n\n\n\n \u201cBefore, when we used to import, we had to pay the VAT upfront, but now you can pay VAT after you sell the goods and collect from the customer. You can also get your postponed import VAT statement online.<\/p>\n\n\n\n \u201cThis reduces the investment value in a big way as the VAT is 20%. Also, the import duty has been reduced to 2% from 2.5%.\u201d<\/p>\n\n\n\n Lodhiya added, \u201cThe only setback UK jewellers will face will be less overseas buyers as the \u2018tax-free\u2019 status for overseas visitors is now abolished.\u201d<\/p>\n\n\n\n A strengthening of the British pound since Brexit will enable importers to source jewellery made from dollar-denominated precious materials more cheaply.<\/p>\n\n\n\n However, there are concerns that the devastating impact of the pandemic on the UK economy may ultimately force the Bank of England to cut interest rates into negative territory for the first time in the UK\u2019s history, potentially dragging on the currency.<\/p>\n\n\n\n The UK base rate is currently 0.1%, a historic low.<\/p>\n\n\n\n The latest surge in platinum prices to an almost 6-1\/2-year peak may augur for a pickup in sales of imported Indian-manufactured gold jewellery in the UK engagement ring market.<\/p>\n\n\n\n Platinum engagement ring sales had benefited in recent years from platinum\u2019s price discount to gold, but as that discount narrows, against a backdrop of rising platinum and falling gold prices, gold could win back a competitive edge. While silver prices have risen since the start of the year, UK silver jewellery suppliers have predicted implementing only modest price rises in consumer markets.<\/p>\n","protected":false},"excerpt":{"rendered":" The impact of the pandemic on precious metal prices may create opportunities in the UK for Indian jewellery manufacturers. The UK jewellery sector has been hammered by the coronavirus pandemic, which has shuttered stores for months and eroded consumer confidence, but government supports have provided an essential lifeline. Non-essential retail stores, including jewellers, are currently…<\/p>\n","protected":false},"author":1,"featured_media":3870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[115,85,114,79],"tags":[],"thb-sponsors":[],"class_list":["post-3869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brand-innovation","category-demand-mapping","category-marketing","category-viewpoint"],"acf":[],"yoast_head":"\n