Taiwan set a record high of NT$20 billion (HK$4.6 billion) in diamond retail sales in 2000, but since then trading has fluctuated with the uncertain economy over the ensuing three years.

    Now, however, The Diamond Trade Council's (DTC's) managing director, Chu Tsui-hua, is confident that turnover could reach NT$19 billion (HK$4.4 billion) this year, surpassing last year's NT$17.9 billion (HK$4.1 billion).

    According to Chu, Taiwan's diamond retailing market is performing in a unique way, with consumers buying for themselves and as gifts each representing an equal share of the market.

    Women in the West usually receive a diamond ring from their boyfriends when they become engaged, but a very high percentage of Taiwanese women buy diamond jewellery for themselves.

    On average, diamonds are expensive in Taiwan, which is a high-end market second only to the oil exporting countries of the Middle East.

    Confident of the spending power of Taiwan consumers, DTC plans to introduce new lines of products next year on top of its Duet and Heart series of diamonds - and does not preclude the possibility of cooperating with leading international brands.

    According to DTC, demand still exceeds supply in the global diamond retailing market, in spite of successive price hikes. Diamonds ranging between 50 points and 1 carat in weight are particularly in demand.

    Taiwan's diamond retailing grew by nearly 10% year-on-year in the first half of this year, and DTC is optimistic that there will be a 10% growth for the whole of this year.

    A DTC survey shows that Taiwan ranks third in the world in the ownership of luxury goods such as watches and handbags and fifth in diamond ownership, which means that there is still much room for growth for diamond retailing.

    Gucci, Christian Dior, Omega and Georg Jensen Silver all have plans for launching diamond jewellery, suggesting that market potential for brand-name jewellery is considered favourable.