Gold manufacturers and wholesalers shifting towards diamonds
With a potential to grow up to 10-12 per cent, the Indian diamond industry is one of the booming industry in the country. Continuous Government support is encouraging more and more businessmen to foray into diamond industry. In the last few months, many gold manufacturers and wholesalers have expanded their business in diamonds as it offers good profits.
Rising gold prices and stringent norms imposed by the Government in the last two years has aided the shift from yellow metal to diamonds. According to an Assocham survey, diamonds and platinum are the most demanded in urban cities. The research team that interacted with 350 jewellery makers based in Delhi, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Bangalore, Chandigarh, etc. and found that most of the makers are looking at mix of strategy to sell jewellery in the current fluctuating market conditions.
In the 4th edition of Jewel Trendz Gems and Jewellery Show, Palak Jewellers – one of the leading manufacturers and wholesalers specializing in Emerald, Kolkata Jewellery, Antique Jewellery, Mangalsutra, Mumbai and Rajkot jewellery launched ‘Solitaa Diamonds’ exclusively for diamond jewellery. Shailesh Daga, Director of the company says, “Diamond is a booming market. While gold continues to be preferred choice for consumers, the elite class is gradually shifting towards diamond jewellery because of the novelty and richness diamond offers.”
The frequent price fluctuation in gold and silver have drawn attention of jewellery buyers towards platinum and diamond based jewellery, added majority of diamond jewellery makers. The unfavourable norms and policies introduced by the Government has created gold inventory crunch in the industry as well. All these reasons, have forced many gold manufacturers and wholesalers to foray into diamond market. The Assocham survey further revealed that there is an increasing interest among domestic consumers in diamond jewellery too.
Apart from the price factor, now-a-days consumers prefer investing in jewellery that can be worn more often. Diamond wear qualifies to be worn for varied occasions and not seen as over the top jewellery as well. Varuna D Jani, renowned jewellery designer says, “People prefer diamond jewellery because they can make use of it at all times rather than heavy gold jewellery. Whereas certain others would consider gold jewellery as a better investment as the value constantly increases and it can also be sold if needed. So it completely depends on the mind-set of a particular individual.”
L Javerchand Jewellers Pvt Ltd, a renowned wholesaler of gold jewellery in Mumbai, recently inaugurated Raj Diamonds exclusively for diamond jewellery. The company had already been foraying into designer products and the recently launched sister company will highlight their new line of products in the market. Anand Jain, Director of L Javerchand said, “Diamond jewellery is in great demand in the market. Though gold is favourite when it comes to investment, but in the last few years the consumers are opting for diamond wear as it can be worn at all occasions.”
Gold is considered auspicious in India; hence for any occasion gold jewellery is most preferred. In addition to this, gold also serves as a good investment hence consumers favour to invest in jewellery of gold. However, due to the uptrend in gold prices people have started looking at other options available for bridal jewellery wear. Diamond and platinum jewellery are coming up as good options for gold.
Ambica Gold, renowned manufacturer and wholesaler from Mumbai that specializes in Mangalsutra, Rajkot jewellery, diamond jewellery and bullion also believes that the diamond market is growing. Ashok Shah, Director of the company tells, “Diamond market is booming in India, but it is no competition to gold market. Gold has always been a preferred consumer choice when it comes to investment as it has greater resale value. However, consumers are shifting towards diamonds gradually because it’s aesthetically rich in look and can be worn for numerous occasions.”
Pradeep Jethani of Jet Gems says, “Diamond Neckpieces are largely preferred nowadays and are trending in Indian market. A discreet pair of diamonds is the most useful of all accessories – they pair well with traditional and Western wear; day and night looks and casual parties.” With a lot of things happening in India for the diamond sector, Indian diamond industry has the potential of growing at 10-12 per cent in 2015 compared to 8 per cent last year. Further, the introduction of tax free zones in India further is encouraging more and more people to invest in the diamond industry. An auction centre within India will also enhance the diamond industry in India.
–Rika Aash Pathak