Jewelleries across Qatar have stacked up diamond and pearl ornaments as many customers look for ‘alternative’ to gold whose prices have mostly shown an ‘upward trend’ in the recent months.

Diamond and pearl jewellery are ‘gaining acceptance’ in the local market with international certification and exchange offers becoming ‘incentives’ for discerning buyers.

Inquiries, however, reveal the greatest demand is still for gold ornaments despite their escalating prices. This is because gold has an important place for use in jewellery, in import and export trade and as an investment commodity.

Many jewelleries in the country have displayed diamond and precious stones cast mainly on 22-carat gold. Diamond and precious stones are studded on 22-carat gold for durability.

“A majority of customers buy gold ornaments, but many now accept diamond and pearl jewellery mainly because of the spurt in gold prices,” said A.J.Joju, regional manager (Qatar) of Joyalukkas Jewellery.

“This is an emerging trend. Diamond customers are now assured of quality certification from the International Gemological Institute,” Joju said.

IGI-certified diamond-studded jewellery is finding many buyers these days, according to traders. It is also accepted by jewellers on ‘exchange offer’, but subject to specific terms and conditions, an industry source said.

Branded pearl ornaments backed by quality certification are also available with leading jewelleries across Qatar, the source said.

Gold prices remained high and closed at QR179.50 per gram for 22-carat and QR192.50 for 24-carat yesterday. Ten tolas (116g) was priced at QR21,845 at close of business yesterday.

Doha’s retailers secure most handmade ornaments from Dubai. Machine-worked ornaments come mainly from Singapore, Italy and Hong Kong.

A recent report by the Dubai Chamber of Commerce and Industry said the increased use of gold in making jewellery in growing markets such as India and China has pushed up the yellow metal’s prices.

Besides, the demand for gold as reserve and hedge against inflation and investment and speculative demand for gold with the intention to profit from the continuing uptrend also contribute to the uptrend in gold prices, DCCI said in its report prepared in association with the Dubai Multi-Commodities Centre (DMCC).

The investment demand is not the only reason for the price rise of gold, higher demand for converting it into jewellery in countries such as India and China, as gold plays an important role in their cultures, also led to the rise in gold prices, the report said.

The World Gold Council (WGC) estimates that jewellery and investment demand from these Asian countries represented about 40% of total global demand in 2010, and that demand from India is expected to grow overtime.