Companies

Diamond beckons as gold turns dearer

Suresh P. Iyengar Mumbai | Updated on June 13, 2011 Published on June 13, 2011

diamond





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.

Published on June 13, 2011

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.