The Hong Kong Jewelry Show in late September is currently the largest trade fair in the world, and arguably the most important in Asia. And, since Asia is driving a lot of the economic growth of the jewelry industry, it may be the most important show in the world.

I was in Hong Kong on behalf of my client, the American Gem Society Laboratories, and met with a lot of diamond dealers and jewelry industry leaders. The mood of the show was dampened significantly by the downturn in the global financial markets, which were buffeted by the economic uncertainty in many developed countries today. Some were relating the softness of the market, and the show in general, to the defacto start of the “great recession” back in September, 2008, when Lehman Bros. went under. Others simply said that this, too, shall pass, and were cautiously optimistic about the coming selling season. From this writer’s standpoint, there is room for argument on both sides.

Diamond prices had risen significantly throughout this year, but softened in August, similar to gold. But prices still seemed firm for those with the capital to hold goods. Others, who were perhaps stretched at the banks, were forced to sell goods at less than optimum prices. This unfortunately creates more uncertainty in the diamond markets in general.

Martin Rapaport gave a stirring speech on the diamond markets during the show, stating that he simply reflects the prices that are being transacted in the global markets, and further stating that retailers should be able to sell whether prices go up or down, based on the margins they are getting.

One would not think that diamonds are rare when walking through the diamond pavilions of the Hong Kong Show. I saw more goods in Hong Kong than ever before, although many dealers still feel they have a hard time finding specific sizes and qualities in the marketplace. Some attribute this to people buying and holding goods off the market. Others simply say that demand in Asia is so high that the goods are moving to areas not before seen as robust diamond markets.

Traffic in many of the finer “designer” jewelry pavilions seemed light for the most part. Most manufacturers were concerned and less than satisfied with the buying done at the show. The most trafficked areas I saw were the rows of estate and vintage jewelry sellers, and those doing close-outs. But that may just be a fact of life with the second-hand and deep discount markets.

I spent a lot of time in the Grand Hall of the Hong Kong Show at the Convention Center. The size and quality of gems and jewelry is second to none in that area. Where else could one see $100 million in jadeite jade in one 20′ x 20′ booth? Or a similar amount in fine, large diamond jewelry. The Hong Kong Show is a must for any jeweler who wants to stretch his or her mind on the limitless possibilities available in the gem and jewelry industry. Here’s where to find more information for next year’s show.

Did you attend the show? Did something keep you from attending?