09 Aug 2022
DiamondWorld Directory
Home |
Prices on the Upswing
The true is for both rough and polished, albeit that they have been increasing at a slightly different pace.
By: Diamond World News Service
May 4 2011 2:03PM
Reference: 5970  

Reformat to multiple page view:

Whether it was at the Hong Kong fair earlier in the year which saw phenomenally high polished prices, or it is Antwerp where ever increasing rough prices are causing some anxiety, prices have been the focus of the diamond industry worldwide. Diamond World reviews the situation.

It’s been a bull ride for diamond prices in recent times. This is true for both rough and polished, albeit that they have been increasing at a slightly different pace. The factors impacting the two seem to be interlinked.

At the Hong Kong Fair, in early March this year, diamantaires were ecstatic at the strong demand for, and the prices that their diamonds attracted, almost across the board.

“There is an incredible demand for polished,” said Kunal Mehta of Eurostar. “Pointers, grainers are doing very well.” Mehta added that larger sizes were picking up as there was investment interest in those, and there was scope for growth in that area.

This was a culmination of a rising trend and several people expected that after the fair prices would go down. But that was not the case. In March 2011, prices reached a new high outstripping the peak they had attained in August 2008. This was after a continuous downward movement from around October-November 2008 through much of 2009. Polished prices began moving up towards end 2009 and continued to climb steadily through much of 2010, but rose sharply in the first quarter of 2011.

Rough prices which plunged in the post-2008 crisis period began going up earlier in 2009 and also climbed steadily, and at a faster pace, since then. In the first few months this year prices rose even more vigorously to reach a peak. According to reports, in March DTC is said to have increased prices by 11%, BHP by 6% and Alrosa in the upper single digit region. Speaking at a Press Meet in Mumbai, Varda Shine DTC CEO said that the 2010 rough prices were effectively 27% higher than the 2009 levels.

Eurostar’s Mehta attributed the rising prices to shortage of rough in the market and lower production of polished in the manufacturing centre of Surat, which he says is still facing a labour shortage.

Antwerp-based Dinesh Narula of xxxx confirmed this view commenting, “The market is very hot right now. Prices are going up continuously, and the rough shortage in the market will mean that they go up even more in the coming months.” Narula was happy that polished prices were also moving. “That is a good sign,” he said, adding, “The Asian markets are moving very well and fast; the US has also picked up; hence, for the star and -2 categories the prices are very strong.”

Sounding a note of caution however, Narula stressed, “The prices should stabilise here. We need to also keep in mind the consumer market. People’s pockets are not changing and they may not accept such a rise in the finished jewellery product.”

There are some in the trade who feel that the high prices of rough reflect a speculative tendency. In the past there has been much concern about speculation in the trade and the negative impact it could have on the industry as a whole.

However industry analysts point out that the current situation may not be the outcome of such factors in the main, but rather the result of the fundamental situation in the business. The supply-demand equation is clearly weighted in favour of demand. Both rough supply and polished production have remained at lower levels than in the pre-2008 period. De Beers estimates that in 2010 the Indian diamond market grew by 31% while China grew by 25%, and the US market fared much better than expected. Overall diamond demand, the company estimates, rose by 8% in 2010. It is optimistic about growth in the two Asian countries this year as well.

Most forecasters and analysts feel it is safe to assume that prices will continue to rise, with minor ups and downs – at the very least they will continue to hold, unless some unforeseen circumstances arise.

Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet
Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Sort by: 
(Kolkata,West Bengal)
People often ignore kitchen appliances in comparison with other home appliances. But a kitchen appliance like Refrigerator or Water Purifier is no lesser important that the furniture, as far as the interior beauty is concerned. It's really gorgeous stuffs at www.rightgadgets.in/Items.asp?Category=KitchenAppliances_India_Online&cid=6 to enhance the beauty of the home.
*  Company:
*  Name:
*  Mobile:
*  Email:
Subscribe for DiamondWorld weekly Newsletter
Search News by City
Recent Issue
News in Pictures
Young Diamantaires
Pictures: 16
Stunning Jewellery from Cannes 2019
Pictures: 24
Sparkly Jewels at Oscars 2019
Pictures: 19
Golden Globes 2018
Pictures: 15
Spotted: Who Wore What (December 2018)
Pictures: 4
India Diamond Week
Pictures: 8
Spotted: Who Wore What (October 2018)
Pictures: 7
Spotted: Who Wore What (September 2018)
Pictures: 6
70th Emmy Awards
Pictures: 11
35th India International Jewellery Show 2018
Pictures: 46
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 31218
Diamond World Expert Hour with Evgeny Agureev, Deputy CEO, ALROSA
Views: 8519
GJEPC Chairman Interview
Views: 27413
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 38178
Promo for IJ Awards 2012 at NDTV Profit
Views: 55955
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 67505
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 21279
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 49886
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 51610
Member of:
Supporter of: