India’s diamond market is showcasing remarkable resilience and even growth, challenging perceptions of a global downturn. Insights from industry leaders paint a picture of increasing demand and positive market sentiment.
Key players in the Indian diamond industry are reporting a significant uptick in sales and demand. Devansh R. Shah, partner at Venus Jewel, says, “Sales have been good in the month of August, especially in the last two weeks. As per our internal pricing system, prices have increased in many areas and the supply is not sufficient to replace what has been sold.”
Ankit Shah, director of Ankit Gems believes that diamond prices have stabilised in recent weeks. “August has been one of the strongest months of 2024 for polished sales. As we approach the festive season, we are witnessing a resurgence in demand for diamonds. Additionally, with rough diamond supplies being curtailed in August due to two major miners cancelling their sights, polished supply will be limited, resulting in price rises in September.”
Demand for fancy shapes heats up
While round diamonds continue to hold a significant market share, fancy shapes are gaining ground. Devansh Shah from Venus Jewel says, “The demand for fancy shaped diamonds is more than for rounds. Emeralds and radiants across all sizes are selling well, as are ovals.”
Vikesh Shah, partner at Star Rays, adds, “Despite the increase in the price of certain fancy shapes, the movement in shapes like long cushions, long radiants, and ovals seems to be leading the sales of our fancy lineup.”
Vipul Sutaria, Director of Sales and Marketing, Dharmanandan Diamonds says that this likely has to do with manufacturers investing a lot of effort to hone their craft. “At Dharmanandan Diamonds, we have mastered hearts, radiants, pears and emeralds. Another company might have mastered ovals, so it depends on how one does their R&D on cut improvisation.”
Ankit Shah of Ankit Gems agrees that fancy shapes are growing in popularity, but attributes this to visibility in the media and celebrity culture. He adds, “Modern buyers are drawn to the individuality and elegance that these shapes provide.” Popular shapes include ovals, long cushions and long radiants. “Prices for these shapes are currently stable and showing an upward trend.”
Gearing up for the festive season
Several factors are contributing to the current market optimism including the upcoming festive season. Devansh Shah from Venus Jewel says, “Our expectations for the upcoming season — right from Diwali and Christmas to the Chinese New Year — are positive. Stocking across the world has already begun.”
Demand is coupled with supply challenges that could impact prices. Shreyans Dholakia, Entrepreneur – Brand Custodian, Shree Ramkrishna Exports (SRK) explains, “Miners have cancelled their official supply this month, including De Beers and Petra, so there will be less or negligible supply, leading to greater scarcity in the near future.”
This supply constraint, combined with the typical two to three-month production cycle, suggests that the market may face shortages during the festival of Diwali and spill over into the months of November and December.
Dholakia says, “In certain segments, there are definitely chances of price increases because there is a scarcity of diamonds.” The dearth of supply is likely to impact the rest of the year. Dholakia adds, “The wedding season will further contribute to the scarcity until December.”
Positive forecast
Devansh Shah of Venus Jewel believes that the strong Indian economy is also a contributing factor. “The Indian market is doing exceptionally well, the confidence in the economy is high, thanks to the higher spending power in the upper and upper-middle classes,” he says.
While the current sentiment is positive, industry experts advise keeping a close eye on market dynamics. The interplay between increased demand, supply constraints, and evolving consumer preferences will shape the market in the coming months.
Venus Jewel’s Devansh Shah expresses confidence: “Stocking across the world has already begun. The Indian market is doing exceptionally well, the confidence in the economy is high.”
As the industry navigates supply constraints and changing consumer preferences, the coming festive season promises to be a crucial period for the diamond trade. “Markets seem positive after months and we hope the trend continues,” adds Vikesh Shah from Star Rays.
