It’s a Diamond’s World!

Diamond prices have appreciated by almost 35 % to 50 % in the last two months. This price rise has appreciated after almost a decade. The RapNet Diamond Index noted a rise of 5.3% in December last year on 1-carat diamonds and 17.4% for 2021 overall. Currently the sentiment is mixed following the sharp rise in rough and polished prices. Sales during February are due to fill supply gaps. Rough is selling currently at unsustainable premiums on secondary market and is fueled by shortages and speculation. Diamantaires see a further increases likely at De Beers sight.

“2020-’21 proved that diamond business is rock solid!"

Manufacturers, dealers, traders, retailers and karigars, none has been spared from the effects of this volatile situation. Sachin Jain, MD, De Beers India Private Limited speaks with confidence, “As an industry we have grown and with the price rise, we’re happy, as it defines the evolving tastes of the consumer, it shows a demand. There is a demand for this gift of mother earth. Diamond and jewellery mean something to the consumer! Hey, they’re asking for diamonds – the miraculous souvenir from mother earth!” Commenting upon the anticipation of the market about the sight, he states, “The prices of rough do does not make any substantial difference to the cut and polished diamond scene,” he clarifies “and it takes almost 2 to 3 months for the prices to trickle down.”

Commenting about the pandemic affecting business he says, “Mining was stopped, manufacturing units had shut shop, retailers were out of business and thus the low stocks, but the health of the pipeline is excellent. No doubt rates of polished diamonds are high today. There has been a systematic increase in the prices and for the future, there is a new reality that everyone needs to accept. The process has been streamlined. Though the prices are high today and the scene perceived as volatile, most businesses have defined their end-consumer in the process as the pandemic has forced businesses to look within and grow. This only shows that the diamond business is rock solid!” he reasons.

Manoj Kumar Jha, MD, Kamakhya Jewellers sees the price rise as almost over. “I see a 10 to 15% rise, there will be a sideways movement and then a settling down of the prices will happen. Another increase is expected in the coming days.” He does not see any trash in prices till May. About the volatile situation Jha comments that sudden change is generally not acceptable. At the end of the day, one will be happy. Ultimately, one can witness diamonds move like gold! The last decade saw diamond prices almost flat, so there was consumer attraction. It will boost in the next few months,” he assures.  

Punit Jain of Venus Jewels, says that he has a very positive outlook for the future. “The value of all commodities is increasing, so if diamond prices increase, it is only welcome. The volatility of the prices is marked but the speed of the price rise is not acceptable to the industry and causes skepticism. We are waiting for the new prices and there should be a stability soon. Let us see tomorrow how the new prices are accepted by the industry. Till then the market is in rotation mode. Real business will take place after Monday.”

Jaymin Vora of Romil Jewellery is happy that diamonds have appreciated after almost 11 years. He recommends that people should invest in diamonds if they are looking for long term investment. “If I buy a Rolex for 5 lakhs and if its rate is 8 lakhs today, I will be happy and ecstatic. Diamonds are the ultimate luxury item. I see a steady market within three months and the industry will have accepted the diamond prices by then.”