The Indian gems and jewellery industry has recorded a 21.5% increase in its exports for first six months of 2007 to value at $9.38 billion, as compared to $8.01 billion earned during the same period of 2006.%%The Reserve Bank of India (RBI) has mentioned that although India’s export is feeling the pinch of the rupee appreciation of over 10%, contrary to this the gems and jewellery sector is gaining ground with exports, with increased demand from international markets. Analysts believe that the rupee appreciation has made imports of raw materials including uncut gems and gold cheaper.%%According to RBI, the gap between supply-demand of gold is responsible for increase in gold prices all over the world. According to The World Gold Council (WGC), gold supply during the second quarter of 2007 came to 840 tons while demand was for 944 tons.