Good News! Diamond Prices Drop by 35%; Could Fall More

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• Oct 26, 2023 | Dhupali Das

The prices of certified polished diamonds have plummeted by a staggering 35 percent month-on-month during the Dussehra festivities...

Digital Desk: The diamond market has witnessed a remarkable transformation this festive season, offering a unique opportunity for buyers to adorn themselves with the sparkling gems. According to recent reports, the prices of certified polished diamonds have plummeted by a staggering 35 percent month-on-month during the Dussehra festivities, in stark contrast to the prices during last year's Navratri-Dussehra period. This significant drop has resulted in certain categories of diamonds now being priced similarly to their rates in 2004. Notably, smaller diamonds, often byproducts of the cutting and polishing process, have seen a 10-15 percent reduction in their prices. The unexpected shift in the diamond market is attributed to a confluence of global and industry-specific factors, as reported by the Economic Times.

Several factors have contributed to this price drop. The ongoing Russia-Ukraine conflict, economic recessions in major economies such as the United States and China, and the growing popularity of lab-grown diamonds have collectively played a significant role in driving down the prices of polished diamonds. India, known as a global powerhouse in the diamond industry, responsible for cutting and polishing 90 percent of the world's diamonds, now finds itself with an excess inventory that it is keen to offload into the domestic market.

This situation has created a golden opportunity for Indian consumers to purchase diamonds at more affordable prices. This trend has been well-received by consumers and jewelry retailers alike. Suvankar Sen, the Managing Director & CEO of Senco Gold & Diamonds, pointed out that "The fall in diamond prices has resulted in a 20 percent increase in sales this Dussehra at our stores nationwide."

The most noticeable price drop has been observed in diamonds ranging from 0.25 to 3 carats. Kirit Bhansali, Vice-Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), emphasized that this price adjustment is enabling Indian consumers to acquire larger diamonds that might have been financially out of reach before this market shift.

Furthermore, there is potential for the domestic market to experience a further reduction in polished diamond prices as rough diamond prices start to decrease. This is compounded by a significant reduction in demand from the United States, the largest buyer of polished diamonds. Over the past three months, rough diamond prices have seen a substantial decline, reflecting the evolving dynamics of the global diamond industry.

In conclusion, the current diamond market presents an unprecedented opportunity for Indian consumers to invest in these precious gems. With prices falling to levels not seen in nearly two decades, the festive season is shining even brighter for those looking to add a touch of sparkle to their celebrations.