In the recent past, demand for loose diamonds has escalated. There could be multiple reasons for this trend, but the most likely reason is savings induced by the recent lockdowns owing to the inability to spend on vacations abroad or in malls, multiplexes, and so forth.
Indian consumers, even from small towns, are changing their preferences, and buying diamond jewellery as against plain gold jewellery. This has, in turn, given an increased impetus to the demand for loose diamonds as more and more retailers are pandering to their customers’ demand for quality diamond jewellery. Those retailers who dealt only in plain gold jewellery earlier too are going in for buying diamond jewellery. Therefore, the whole supply chain has started moving rapidly.
Buying spree all over
Manufacturers from all over India are looking for diamonds in fancy shapes, cuts and colours. Designers, in turn, are unleashing their creativity like never before. IIJS 2021 has devoted a section to select loose diamonds, offering a large variety for consumers to choose from.
According to Mehul Dungrani, Varni Gems, “The market shows a boom for diamond jewellery. We deal in small sizes and we see that orders are pending, supply is slow. Price points rose a bit two-three months back.” Sometime back, prices of roughs rose, but, in turn, there was no rise in prices of cut and polished diamonds. Because of COVID, people have realized that investing in gadgets is not of much use, jewellery gives you good returns on investment. “The show is good for us. Response is good. Booths for loose diamonds are relatively fewer, and so, demand per booth is good. There is a variety of loose diamonds on display. We have retained good grading and so our long-standing clients are coming forward to meet us. They want to resume buying from us. They have realised that we offer good quality,” Dungrani added.
Diamond prices relatively stable in India
Diamond prices have remained stable to an extent. Now, cut and polished diamond prices are rising somewhat. Consumers at large have understood that today, only gold and diamond jewellery is giving good returns on investment. “After the second lockdown, markets have opened. People are stocking up for the upcoming festive and wedding season. In India, we see a good demand for 50 points to 2 carats, and IJK fancy coloured diamonds. So, we have displayed a good range of fancy coloured stones. We are also promoting them,” explains Ankit Shah, of Ankit Gems.
New destination brings new clients
IIJS has been taking place in Mumbai for a long time, and this is the first time it has moved to Bangalore. This has given a boost to the G & J industry of South India. “We have a large customer base in South India, we wanted to reach out to all our customers from the South. We have a very loyal customer base from IIJS. IIJS always brings together all the G & J people and so we are happy to be here in Bangalore. Post-COVID, people wanted to come together to connect with one another. This enables ongoing business. We get to meet new buyers, and therefore, we are happy to be here. Jewellers have started placing orders for the upcoming festive season. We have very short time before Diwali to fulfill our orders. The smaller sizes – below 11 points, pointers are also doing well: 30 40, 50 and upto 3 carat sized diamonds have good demand,” explains Vipul Sutariya, Director, Sales & Marketing at Dharmanandan Diamonds Pvt Ltd.
Adds Rohan Jain, KGK, “We have a global presence. We have offices in 17 countries the world over. We wanted to make our presence felt, it is more of a PR exercise so we are here at IIJS 2021. We have six manufacturing units world wide: Namibia, South Africa, Botswana, Angola, Russia and India.”
Market sentiment in India has been good for the last couple of months. “Everyone wants things to move fast, they cannot wait for two months to get their diamonds. They can’t work on order basis. Apart from that, demand is really good. Market in India rocks. One carat plus everything has good demand in India,” Jain adds.
Demand in India is stable
In India, the demand for diamonds has remained stable. “Prices of rough and polished diamonds are witnessing some increase, and also, there is a likely rise in demand in the near future. The consumption pattern is good and everything seems fine. Diwali is going to be great, if there isn’t another lockdown. We have seen that sales are rising all over. Finestar has moved towards large sizes and fancy shapes. With consumption and sales happening on our website also we are hoping for good business in future as well. We started making better cuts and Asians and Americans both have started appreciating it,” says Nilesh Chhabria, COO, Finestar Diamonds.
Taking IIJS out of Mumbai was in fact a good move to expand business. “We buy roughs of VVS, VS and these are sold mostly in the South and we wanted to tap into our clients in the South. I like the positioning to move out Mumbai. They should go to every new city each year. This will help everyone increase their geographic area,” adds Chhabria.
“We have been with IIJS since the past six years as De Beers. The show is good, physical meets are important. It resonates strongly. We are lucky to be a part of this business – the market has grown tremendously. It is going to be one of the strongest years the industry has witnessed,” believes Sachin Jain, MD, De Beers Forevermark.