Italian jewellery exports, mostly gold, may fall some 20-30 percent by volume in 2006 as competition from lower cost countries, high duties and a strong euro hit the industry, a sector expert said on Friday.
Italy's gold and silver jewellery industry used to dominate the world, but has been recently overtaken by India which has boosted its jewellery sector thanks to cheaper labour costs and improved quality.
Alessandro Biffi, chairman of the Italian association of jewellery, eyewear, leather goods and shoe manufacturers, FIAMP, said exports of machine-made golden chains - which account for about 60 percent of total jewellery export volumes - are expected to fall 20-30 percent this year.
In the first quarter, the value of Italian jewellery exports - which account for about 70 percent of all output - jumped 27 percent to 771 million euros ($974.5 million), on the back of soaring gold prices, FIAMP said.