Indians are splurging on diamonds buoyed by a decline in solitaire prices since last Diwali. This has also raised hopes of robust sales of solitaires in the upcoming festive season, jewellers said.
Prices of the most common variety of solitaire diamonds of 1 carat have fallen from a high of Rs 4.2 lakh last Diwali to Rs 3.4 – 3.5 lakh currently, making it more affordable for consumers to buy the gemstones, particularly for wedding rings. Also, those buying 1 carat solitaire rings previously are now moving to purchase 1.5 carat. The price drop has happened following a drop in exports of cut and polished diamonds from India to the US, and a complete drying up of exports to China.
Jewellers are restocking solitaires in anticipation of good sales this festive season that will kick off with Navratri.
In South India, the largest consumer of gold and diamonds in the country, the price fall has prompted buyers to upgrade to higher quality diamonds, which are colourless, flawless and have excellent cuts. The price of a diamond depends on 3Cs – colour, clarity and cut.
Chaitanya V Cotha, executive director at 155-year-old Bengaluru-based jewellery firm C. Krishnaiah Chetty Group said, “In South India, people prefer high-end diamonds of clarity of IF (Internally Flawless) and VVSI (very, very slightly included). The prices of these diamonds start from Rs 6 lakh onwards. In this category too, prices have fallen by 12-15% in the last six months. As a result, we have seen an increase of 15% in sales of higher-caratage solitaire diamonds. Also, people have upgraded to higher quality diamonds.”
“With the recent adjustment in solitaire diamond prices, demand has risen sharply. Indian buyers, especially when purchasing wedding rings, are now spending well beyond the traditional three-month salary benchmark, surpassing the global average. Diamond has become a gifting item nowadays, which was not the case a few years ago,” said Rajiv Popley, director at Bandra-based Popley & Sons that specialises in fine jewellery.
Colin Shah managing director at Mumbai-based Kama Jewelry said gold prices have fallen after the budget, which too led to a spurt in demand for diamonds. “Everybody aspires a solitaire and now they are able to fulfil it,” he said.
“Rapaport price list is the main guide for diamond pricing, across the globe,” explained Dinesh Navadiya, former president of Surat Diamond Association. The RapNet Diamond Index (RAPI) is the average of the cheapest/best-priced 10 diamonds based on colour, clarity and cut.
According to RAPI, diamond prices have fallen by 17.4% from January 1 to August 1, and by 26% from May 2023 to May 2024 for 1-carat solitaires.
According to a survey by De Beers Forevermark in May, 13% of Indian customers desire diamond jewellery as a gift, 51% wear diamond jewellery every day and 12% want to self-purchase jewellery with natural diamonds. Also, 23% buy natural diamonds to celebrate relationship milestones or to express love, 12% want to self-purchase jewellery with natural diamonds and 22% look to buy natural diamonds to celebrate personal milestones or to be ready.
