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With gold prices perched near its all-time high, buyers seem to have shifted their loyalty to diamond studded jewellery, especially in the southern region which is ranked among the largest markets for gold jewellery in the country.
Mr Nitin Goenka, Managing Director, Goenka Diamonds, said the recent spike and fluctuation in gold prices has facilitated customers move to diamond jewellery. Besides, the exquisite design, rich look and great offers extended by jewellers have also wooed many traditional gold buyers.
“We had already witnessed the shifting trend in the northern and western markets which are very vibrant and design conscious. A similar drift was witnessed in the southern region from the first quarter of this year when many were seen purchasing diamond jewellery for weddings,” he added.
The domestic gold and diamond jewellery market is valued at $150 billion (Rs 675,000 crore) with gold ornaments dominating 60 per cent share. The growing demand for diamond jewellery should shift the scale in favour of diamond capturing 65 per cent market share by 2015, said Mr Goenka.
Wedding collections
The launch of exclusive diamond jewellery collections for wedding has induced customers change their preferences, particularly in India where about 60,000 wedding takes place in a year, said a Mumbai-based jeweller.
Gitanjali Gems had recently launched ‘The Great Indian Wedding Carnival' that offer a slew of discounts and gifts for the lucky few slated to tie the knot before the end of this month.
Goenka Diamonds has Ceres and Gwild brands. While Ceres targets high-end customers with a price range of Rs 60,000 running up to crores, Gwild is reasonably priced between Rs 5,000 and Rs 5 lakh. The Ceres brand uses three to five per cent gold and 35 carat diamond worth Rs 11.50 lakh.
Customers trust on diamond will get a major boost if the jewellers association can convince the Government to certify the quality by opening its own testing laboratory, he said. Presently, jewellers issue their own certificates for the diamonds sold at their shops and its validity is questioned if put under third party scrutiny.
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