Over the past year and a half, diamond prices have plummeted by approximately 35%, primarily due to a global economic slowdown, the Russia-Ukraine conflict, and the increasing popularity of lab-grown diamonds. Remarkably, the current prices now mirror those of 2004 for specific qualities of one-carat diamonds.
For instance, a one-carat ‘slightly included’ (SI) quality diamond that was priced at around $7,000 in 2004 now commands nearly the same price.
“The US is the largest diamond market, and now is the ideal time for buyers. At these levels, it presents a unique opportunity as natural diamonds are becoming increasingly rare,” remarked Girdhar Gajera, a diamond manufacturer based in Belgium.
Indian buyers who invested in diamonds 15 years ago are now reaping the benefits of their foresight, thanks to the depreciation of the Indian rupee against the US dollar. In 2004, the exchange rate was ₹45 for $1, but today it stands at ₹83 for $1.
“Natural diamonds are scarce, and their supply is limited. It’s a golden opportunity for enthusiasts like me. The price correction in solitaire diamonds is truly enticing,” shared Meena Patel, a homemaker from Adajan, who plans to purchase a solitaire worth Rs 5 lakh at a reduced price of Rs 1.5 lakh.”The current pricing of solitaire diamonds is favorable for buyers interested in larger stones,” stated Dinesh Navadiya, the former regional chairman of the Gem and Jewellery Export Promotion Council (GJEPC).With reduced prices, jewelry manufacturers are now setting their sights on thriving in both domestic and global markets. “The affordability of diamonds above one carat presents a significant opportunity for local and international jewelers. We anticipate robust business growth,” commented Amit Desai of Charu Jewels.
“In sum, the diamond price corrections represent a promising development for the gem and jewelry sector. We remain optimistic about recovery from this level,” concluded Vijay Mangukiya, the regional chairman of GJEPC.