Diamond Prices May Increase

‘Beau Sancy’ Diamond Fetches High Price

‘Beau Sancy’ Diamond Fetches High Price
‘Beau Sancy’ Diamond Fetches High Price | Source

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One Should Be Careful While Buying Diamonds


‘Beau Sancy’ Diamond Fetches High Price

Gold prices are glittering literally. Investment in gold is increasing because of its standard. But nobody invests in diamond for investment purpose. This is because diamond does not have a standard quality like gold. There are different types of diamond with different shapes and colours. Price of the same diamond piece differs from place to place and from dealer to dealer. Recently a royal diamond from India fetched a dazzling $9.5 million at Sotheby’s in Geneva in Switzerland. This diamond was coveted by queens, princes and kings for centuries. It was called by the auction house as ‘Beau Sancy’ diamond. The diamond fetched the fancy price because of its historic value.

One Should Be Careful While Buying Diamonds

The diamond was first mined in Golconda, Deccan in India. Nicolas de Harlay, Lord of Sancy acquired the diamond in Constantinople in around 1500. French King Henry IV purchased the diamond in 1604 for 75000 livres for presenting it as a gift to his wife Marie de Medici. After this, the diamond changed hands many times and was last found by the British troops in Berlin at the end of World War II. Maybe, this piece of diamond could have brought havoc and ruins to Berlin and Germany. Some diamonds are known to bring misery to the people who acquire them whereas some other diamonds bring prosperity and peace to the people who buy them. There are experts in South India who can say whether a particular piece of diamond will bring prosperity to the purchaser by analysing the diamond and the person’s horoscope. Some diamonds bring good to some people while bringing bad to some other people.

Women Love Diamonds but Men Hate It

In another auction in New York, a diamond-platinum ring with a Kashmir sapphire of 8.99 carat was acquired for $527500 (Rs.2.86 crore). Gem stones like sapphires can also bring good or bad to people depending on the piece they buy. But there is no such thing associated with gold. Gold can be purchased by anybody at any place and it will not inflict good or bad to the person concerned. Women love diamonds but men hate it as it does not fetch any investment value. Diamond trading had brought so much bloodshed in various wars in the past.

India Is a Big Diamond Centre

Nine out of ten diamonds in the world are cut and polished in India. Surat in Gujarat is the biggest diamond centre in India. India is capable of becoming a diamond processing and trading hub in the world. Belgium and Israel have become such hubs in the world. Presumptive tax regime has helped the two countries to establish themselves in diamond trading in the world. Under presumptive tax regime, tax is calculated on average income instead of actual income. Demand for diamond from Japan and China is increasing. Last year, Chinese demand went up by 40%. Japan is interested in buying premium diamonds in large volumes. Chinese are interested in buying cheaper diamonds.

La Peregrina

La Peregrina
La Peregrina | Source


Demand Has Not Reached the Earlier Peak Yet

Last year, diamond exporters underwent a lean period because of the slowdown in the US economy and debt problem in European Union. Political unrest in the Middle East was also a reason. Diamond cutting and polishing industry in Surat is worth Rs.65000 crore. More than hundred exporters in Surat have their order books full with orders flowing from foreign countries. Exports increased in April-Dec 2011 to $3219449 from $2883424 in the corresponding period of the previous year. Sales have shown a double digit growth. Japan’s buying of diamonds in large volumes has surprised the industry. But overall demand for diamonds dropped by 30% last year and has not increased to the pre-2008 levels. Diamond industry is exploring ways to cut costs as demand is ebbing. December is a vacation time for the foreigners and so not much buying of diamond takes place during the period.

La Peregrina

De Beers’ list of sight holders has surprised the market. Asian Star has been dropped and the leading firm Rosy Blue has also been left out of the list. Rosy Blue is world’s largest polished diamond maker. Auction of actress Elizabeth Taylor’ world famous jewels fetched $116 million. It is more than double the record for any single collection auction so far. Her 33 carat diamond ring which was given as a gift by Richard Burton was a fancied item. Other items that attracted the attention were the Elizabeth Taylor diamond and the ‘La Peregrina’.

Big Diamond Worth Rs.3 Crore Unearthed In Panna

After a change of guard in De Beers, focus in diamond trade has shifted to Botswana from London. Botswana is a key supplier of rough diamonds in the world. Diamond demand has expanded twice its supply. Increasing middle class demand from China and India is the main reason for the boom. Demand is expected to increase by 6.4% per annum until 2020. But production is expected to grow only by 2.8%. Diamond production is also not a standard one. Sometimes big diamonds are unearthed and sometimes small and medium sized diamonds are found under the soil. Recently NMDC has unearthed the biggest ever diamond from the Panna diamond mines that has been measured as 37.68 carats. It has been valued at Rs.2.5 to Rs.3 crore.

De Beers Output May Reach 40 Million Carats

Domestic diamond traders in India are divided on impact of global slowdown on diamonds. Some big exporters expect demand for diamonds to pick up in the second half of the current year because of demand from Middle East and China. But the economies in USA and European Union may recover only next year, according to some other diamond traders. But everybody agrees that the weakening of Indian rupee is helping diamond industry. De Beers’ output is expected to peak to 40 million carats in 2012. Forevermark, the brand of De Beers, has made its entry for the first time in Chennai city. South Indians are very fond of diamonds. Even as the European demand dips, the prices of diamonds are headed north because of buying in India and China and also due to demand-supply gap.

Diamond Jewellery Outshines Gold Jewellery In Volumes

Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source
Diamond Jewellery Outshines Gold Jewellery In Volumes
Diamond Jewellery Outshines Gold Jewellery In Volumes | Source

Alrosa Discloses Its Profits And Reserves

Diamond Jewellery Outshines Gold Jewellery In Volumes

After a 40% rally of diamond prices, there is a dip in price by 10% now. But a further fall is unlikely. Price of commonly worn one carat diamond earring produced at Tara Jewellers has declined from a high of Rs.1 lakh to Rs.75000. Diamond Trading Corporation (DTC) is keeping the price of its rough diamonds steady. Depleting rough supply is the main reason behind this. Shrenuj & Company, a DTC sight holder, has posted nearly 60% export growth to Rs.104 crore as on 31.03.11. Diamond jewellery sales have outshined gold jewellery sales by an average of 30% in volume in recent times. Youngsters are buying diamond jewellery online at competitive prices.

Alrosa Discloses Its Profits And Reserves

Twin blasts hit the diamond trading hub in Mumbai, the financial capital of India. But after a short while, business was back to normal. During the blast, diamonds worth crores flew into the air. As gold turns dearer, diamonds are attracting people more and more. SBI stopped fresh working capital loans to diamond merchants because of regulatory concerns and mounting bad loans. For the first time, Russia’s State-owned diamond major Alrosa disclosed its profits and reserves before listing. It possesses diamond reserves of 1.28 billion carats. Alrosa is now world’s largest owner of the precious stone. Probably Russia has world’s largest reserves of diamond.

Bharat Diamond Bourse

All India Gems and Jewellery Trade Federation have launched a diamond retail benchmark. This index will ensure more transparency in pricing of cut diamonds. During the current year, the price of rough diamonds may increase by 25% due to shortage of supply. But whatever maybe the case, India and China will continue to be the growth drivers of diamond industry in the times to come. Bharat Diamond Bourse has been set up to promote the export of diamonds from India. Bharat Diamond Bourse is expected to act as a catalyst to aid India emerges as a strong diamond player in the world.

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