April 21: Diamond jewellery seems to be in vogue this wedding season. The good resale value owing to the sale of certified stones coupled with the rising prices, have made diamond jewellery a lucrative option for couples. “Diamond prices have gone up by up to 25 per cent year-on-year, and its sales have also shot up by the same amount compared to gold in volume terms,” says Mr Mehul Choksi, managing director, Gitanjail Gems Ltd.
The wedding season, which generally accounts for maximum sale of jewellery, has seen a steady rise in the demand of diamond accessories. Though the sentiment for gold is still high, the young and affluent are now opting for diamonds set in gold both as a fashion statement and future investment, he says. Confirming the trend, Ms Anantha Padmanabhan, MD of NAC Jewellers says, “There has been a 10-15 per cent increase in diamond sales this season as added incomes have helped many to migrate to higher levels”.
People are able to absorb the price increases in precious metals as their salaries too have gone up, he feels. Increased thrust on the sale of certified diamonds by industry bodies such as GJEPC has lent credence to diamond sales. “Customers are well informed and people buying diamond jewellery are now demanding to see quality certificates, which come in handy during resale time,” says Mr Prakash of Nakoda Jewellers. The ensuing Akshaya Tritiya on May 6, an auspicious occasion to buy jewellery, is also expected to boost sales of gold, diamond and platinum considerably.
“Generally, Akshaya Tritiya day alone accounts for about 6-7 per cent of our total diamond sales,” says Mr Choksi. Most jewellers have lined up their best designs in diamond jewellery to milk the sentiment of this season. On the export front too, diamonds have outperformed others this year. Cut and polished diamonds alone registered 55 per cent growth this year earning $28251.9 million.