At the Salon International de la Haute Horologerie (that's a fancy watch fair for those in the know) in Geneva last week, luxury goods group Richemont was plying its brand portfolio, including names such as Cartier, Piaget, IWC and JaegerLeCoultre in an exclusive environment where watches encrusted with diamonds can sell for well over 1m.

Speaking from Switzerland, Dublin-based jeweller Sheeran described the event as the "equivalent of Paris fashion week" for the watch industry.

Gushing fans of John Galliano or Miuccia Prada may sniff at the comparison in a country equally famous for Toblerone. But Swiss timekeeping is big business. Over 40,000 people are employed in the country's industry, exporting over 7.5bn worth of watches last year.

While there may not be too many Irish takers for a 1m watch, Sheeran said he will find buyers for pieces that cost 50,000, maybe slightly more.

That's less than what a well togged-out C-Class Mercedes would set you back.

In Switzerland last week to help the Richemont group entice buyers was Ronan Keating, who was singing at a blacktie soiree arranged by its IWC (International Watch Company) subsidiary at a Geneva airport hangar now home to old fighter aircraft.

"Things have changed an awful lot in Ireland in the 12 years that I've been coming to this show and you'll always find a lot of celebrities here now. It's like 'Carlsberg does parties', " Sheeran said. Access to the exclusive watch fair is by invitation only and, once in the door, even showcase stands are off-limits unless visits are pre-approved.

"We'll typically spend a significant seven-figure sum buying stock while we're here, " said Sheeran, who over the course of the week-long show will bring along nine of his staff. In the year to the end of January 2005, his company made a profit of over 740,000, according to accounts filed at the Companies Registration Office.

But despite Ireland's wealth, Sheeran said he's still taking a "massive risk" at the fair when he buys new ranges.

"Our business is very capital-intensive and you could be buying 30 watches from one brand at prices between 5,000 and 10,000 each, so it's a lot of money, " he said, pointing out that well-heeled Irish buyers may spend 20,000 on a watch, but will already have a number of other expensive timepieces they wear depending on the occasion.

But with the razzmatazz of Geneva comes some danger, according to one industry insider, who said Irish buyers can get dazzled by the generous hospitality and bite off more than they can chew.

"I know of one Irish jeweller who stocked a lot of high-end watches and can't even shift them, but it is where many retailers are making their money, " he said.

Many more are making their money on diamonds, and in Basel, 250km northeast of Geneva, another major trade fair was running last week, attracting about 100,000 visitors. Open to the public, the Basel fair is "more cosmopolitan, " according to Sheeran, with jewellery and watches from hundreds of different manufacturers on show.

One industry expert reckons that between the two shows, 40% of watches sold by suppliers in a year are offloaded in a two-week period.

At Basel, buyers such as Liam Shannon, who runs Dublin-based Facet Jewellers, which sells to customers including US television retailer QVC, is also eyeing up trends. In a six-hour period at the Basel fair he had meetings with 14 sellers.

"We buy while we're there and would often be agreeing to a full year's supply of material, " he said.

Neville McDowell, Weirs' diamond buyer, says he had 30 appointments in one week at Basel, and also makes "significant" purchases during his visit there.

The rivalry between the Geneva and Basel shows has been going on for years. The latter may do more business, but can be perceived as a poor cousin.

"The smells in the Basel Fair are more sausage than perfume, " commented former Cartier president Alain Dominique Perrin when once asked about the difference between the two.

Gerard Appleby of Appleby Jewellers was also at the Basel event to check up on new jewellery trends, but does most of his diamond buying at traditional ice spots such as Antwerp.

"We're the largest Irish retailer of diamonds, " said Appleby, whose firm reported a pre-tax profit of just over 1m in the year to the end of April 2005, according to recently filed accounts. "But you do notice that Irish consumers remain quite savvy."

He said that as Irish people are buying more jewellery abroad, particularly engagement rings, he has to keep an eye on international diamond prices in places such as New York, Dubai and Hong Kong to remain competitive.

"That erodes margins, " he said. "But at the same time, we're making it up in volume, so it's not a zero-sum game."

Appleby said the average price spent on a diamond engagement ring 10 years ago would have been the equivalent of around 1,900. That has now doubled to roughly 4,000.

While Irish consumers may feel they can wheel and deal abroad to get good deals, some still get stung.

"An awful lot of people get scalped, " said Appleby. "I see it every week." He recalled one salutary lesson in which an Irish buyer haggled for a 35,000 ruby in Thailand, eventually wearing the seller down to 12,000. The buyer found out too late that a gem of the same quality could have been bought in Dublin for just 400.

While some hunt for bargains abroad, many more are willing to spend increasingly extravagant sums at home.

"Younger people are financially stretched due to the property bubble, but if you look at people buying for a birthday or special anniversary, all bets are off, " he said.

"You could easily be into six figures."