gems and jewellery sector and people fearing a recession may put off their purchases as such revival in the gem and jewellery sector will definitely take more time as compared to other sectors however the coming festival and marriage seasons will surely help in some revival of domestic sales of gems and jewellery besides usage of digital gold and other financial instruments including the existing gold monetisation scheme should be explored focus on promoting sale of low cost and high value addition jewellery such as imitation and silver jewellery through ecommerce will help in creating demand as well as increasing margin of profit embrace the diamond industrys ripple effect global diamond demand from the cutting centres may decline by 5060 in 2020 by chaim evenzohar and pranay narvekar the now inevitable economic slowdown will impact the entire diamond pipeline but each phase will be impacted in a different way with the diamond cutting centres taking the more severe beating only second to the producers the economic phenomenon that explains with considerable certainty the ways diamond and players are going to be affected is the ripple effect a theory that has proven itself over time within our industry if diamond jewellery retail consumption declines by only 15 by the end of 2020 i think we should consider ourselves extremely lucky it is likely to be higher we better prepare ourselves for more the destruction of trillions of dollars globally as a result of stock market crashes and bankruptcies the enormous unemployment which we will face in the postcorona era the recession if not outright depression in the united states the uncertainties about renewal of coronavirus attacks new peaks in winter the 10 or maybe higher decline in global gdp will reduce the level of income and the savings of virtually all consumers excess disposable income will fall or disappear the liquidity crunch and economic uncertainties are greater and globally wider now than they were in previous crises the destocking by the retail trade and in the jewellery manufacturing sector the resultant decrease in demand for polished diamonds and destocking in the cutting centres will have a most severe negative impact on the rough diamond market we are facing already a significant fall in rough demand downward pressures on rough prices shortage of liquidity and reduced pipeline profitability especially on the level of the producers consumers may not have any money left to purchase luxury items diamond jewellery will be impacted before explaining how the ripple effect economists also refer to this as bullwhip effect works allow me a graphic illustration another way to look at the ripple is shown in the following illustration it shows how a small change volatility at the retail level can create enormous wave as the cutting centres and rough diamond production levelshow the ripple works the ripple works both ways both in a growing and in a falling market it is premised on the facts that under certain circumstances increases of diamond retail