Kolkata: Sales of solitaire diamonds of 1 carat and above have picked up in India‘s top cities after the pandemic, as weak demand in the western markets and a resultant drop in prices have made the precious stone more affordable for local buyers.
Global diamond conglomerate De Beers as well as local chains such as Senco Gold & Diamonds and Malabar Gold & Diamonds estimate the increase in demand for solitaire, or one-piece, diamonds in India to as much as 20% compared with the pre-Covid period. Many in the age group of 25-30 years are purchasing solitaire diamond jewellery for wedding, while among the wealthy aged 40-45 years, it has become a favourite anniversary gifting option, said industry executives.
In the past year and a half, diamond prices have reduced by about 35%, as the economic slowdown in developed markets has hurt demand. Meanwhile, sanctions on Russian mining companies by the western world over the Ukraine war and growing popularity of lab-grown diamonds helped increase the availability of natural diamond in India.
While demand is strong for cluster diamond jewellery as well, it is more pronounced for solitaire diamonds, which are more sought-after and costlier.
“Post Covid, we have seen high net worth individuals buying solitaires as they had travelled less and had money in hand. And in FY24, India has emerged as a bright spot and its economy is growing when other countries are struggling with recessionary pressure,” said Amit Pratihari, vice-president at De Beers Forevermark, a subsidiary of the De Beers Group. “Sales of solitaire will see a similar trend if not more in the upcoming wedding season,” he added.
While the price depends on the size and quality of the diamond, the popular categories of solitaire cost between ₹1.5 lakh and ₹4.5 lakh.
Some categories of one-carat diamonds are now available at 2004 prices, said trade sources.
“Even the smaller diamonds are being bought by people living in tier-2 and tier-3 cities. For us, 60% of the business comes from the metros and 40% from tier-2 and tier-3 cities,” Pratihari said.
Not only one-carat, one-piece diamonds of 20 cents and 30 cents have become popular, said Suvankar Sen, managing director & CEO of Senco Gold & Diamonds. “Solitaire sales will be 20% more this year as people will buy it for the upcoming wedding season that will start from November and will continue till March.”
MP Ahammed, chairman of Malabar Gold & Diamonds, said there has been a noticeable surge in the demand for solitaires, “aligning with international market trends”.
The retailer’s solitaire sales have grown over a period of three years, with sales more than doubling between fiscal 2021 and FY23.
