Diamonds never leave you… men do! The ages old quotation has been changed in modern perspective. Of course, there are reasons behind the scene, but uncertainty of the future is the biggest factor to change the Indian traditions. Indians are known to love gold more than anything, however they are in search of new alternate of gold and stock market, when the word “investment” is the topic of debate.
Gold is touching new heights while stock market has been going to down, diamond is emerging as new favourite for serious investors. According to jewellers, diamonds offer a greater investment opportunity and are secure enough to gain profitable return.
In this mid-July, Diamond solitaires outpaced gold gaining 10 percent growth. Let’s see why Indian users are considering diamonds more secure than anything.
Gold has the highest import duty and other surplus taxes in comparison of diamonds and other gemstones. On Imports of rough diamonds in India is completely free from levy charges plus if you import polished diamonds, you have to pay only 2% import duty.
On the other side, there is no resale market which makes it hard to sell a diamond in return for hard cash. Traditionally diamonds are sold either in jewellery or in auctions.
To encourage the trend, companies are providing monthly price list for diamonds that helps consumers to trade their old stones for new gems, or cash as per current market rates.
“Prices for diamonds have increased by 80% in the last three years. This has started giving a lot of confidence to consumers to buy diamonds not only as an aspiration, but also as an investment,” says Jignesh Mehta, managing director of Mumbai-based jewellery company.
“The latest prices are obtained by entering the unique identification number of a diamond on their website,” he includes.
Other leading jewellery house expresses similar views. They say, “Demand for diamonds is picking up from our new and old customers. The fashion preference is also changing as diamond is more stylish than gold. We expect about 50% growth this year in diamond.” says a retailer.
Besides these, India is the largest hub of diamond processing acquiring more than 90 percent business of diamonds. This offers more opportunities to retailers and buyers because of available at affordable prices in comparison of international market.
In this scenario, we can hope that Indian will prefer buying more diamond instead gold in the near future but this will depend on how the diamond resale market approaches them. Till then we will continue to love gold.