Price rise is good for the long run. A sudden sharp rise in prices is not expected nor is it taken seriously by the industry. Tracking the reasons is Manoj Kumar Jha, MD, Kamakhya who informs that “the driving factors for this price rise is shortage of rough, scanty labour, exceptional demand, increase in price rise by De Beers and the premium charged by the rough diamond traders which motivated the mining companies to increase their prices.”

Sumit Kamalia, Director, Uma Ornaments agrees, “Every asset appreciates over time and appreciation of diamond prices was due. However, it has been quite troublesome for all of us. The sudden price rise does not allow one to commit on one price and that shows as unprofessionalism on our part, as the process of recommitting and negotiating is repeated. We are blessed to have retail clients who are cooperative and have not lost their patience.”

Mitesh Gajera, MD, Laxmi Diamonds says that though the situation is volatile, they do not see the prices getting any lower. “We see diamond prices stabilizing. We are expecting a very positive outcome and there is optimism about the future of the diamonds industry. Our independent store clients initially doubted the rates; however, the retail clients understood the market scenario accepting the sudden rise in price.”

Explaining the many reasons for volatility, Gajera said, “Short supply, the price rise, a good demand, manipulation to a certain extent and like all commodities across various industries appreciate, there is no reason why diamond prices should not rise. It is high time the value of diamond be known and be appreciated. I recommend that one could easily invest in diamonds now on.” Jha from Kamakhya also recommends investment in diamonds and especially the Dossier diamond. “Fancy diamonds will see continuous shortage for another 2-3 months and because of that shortage, there will be an extra rise in price, especially pear, marquise,” Jha specifies and notes further that “the workforce prices will support diamond prices,” he deduces and further states that gold too will move sideways till 1.5 years, without any big hike in 2022.