 "Investors find diamond solitaire safe bet, price up 37% in a year")
Diamond solitaire’s price rose sharply to 37 per cent in a year on robust demand, as investors sought refuge in precious stones in anticipation of favourable returns, following lacklustre performances by other asset classes.
Data compiled by Divine Solitaire, a city-based online retailer of polished diamonds, showed the benchmark VS2 clarity, with G colour and round shape of 0.40 carat polished diamond, was 37 per cent to Rs 77,600 apiece on Tuesday as compared to Rs 56,400 apiece a year ago. Similarly, the price of 0.9 carat of SI1 clarity, G colour and round shape, moved up 22 per cent to Rs 3,30,300 apiece on Tuesday compared to Rs 2,70,000 apiece on January 28, 2013.
Gold has offered negative returns after 12 years of average double digit growth. Other asset classes, including real estate and equities, have performed unfavourably, leaving investors with negative returns. In contrast, precious stones have been a preferred investment option for all classes of investors.
Data compiled by Divine Solitaire, a city-based online retailer of polished diamonds, showed the benchmark VS2 clarity, with G colour and round shape of 0.40 carat polished diamond, was 37 per cent to Rs 77,600 apiece on Tuesday as compared to Rs 56,400 apiece a year ago. Similarly, the price of 0.9 carat of SI1 clarity, G colour and round shape, moved up 22 per cent to Rs 3,30,300 apiece on Tuesday compared to Rs 2,70,000 apiece on January 28, 2013.
Gold has offered negative returns after 12 years of average double digit growth. Other asset classes, including real estate and equities, have performed unfavourably, leaving investors with negative returns. In contrast, precious stones have been a preferred investment option for all classes of investors.
| Round shape diamond solitaire price (Rs) | |||||
| Size | Colour | Clarity | Jan 28’13 | Jan 28’14 | Variations (%) |
| 1.3 | H | VS1 | 6,07,100 | 7,00,700 | 15.42 |
| 0.4 | G | VS2 | 56,400 | 77,600 | 37.59 |
| 0.9 | G | VS1 | 2,70,000 | 3,30,330 | 22.33 |
| Source : Divine Solitaire | |||||
Cut and polished diamond has seen increased demand from markets abroad also.
Data compiled by the apex trade body Gems & Jewellery Export Promotion Council (GJEPC) showed 40.59 per cent spurt in exports of cut and polished diamonds in rupee term and 27.75 per cent growth in dollar term in the period between April and December, 2013. Total exports of cut and polished diamond shot up to Rs 88,102.99 crore ($14,703.83 million) in the first nine months of the current financial year as compared to Rs 62,667.88 crore ($11,509.86 million) in the corresponding period last year.
Many jewellers and individual solitaire retailers offer buyback with 80-90 per cent lifetime guaranteed returns.
There are over 123 parameters for determining the price of solitaire which common consumers do not know. Despite size, cut, colour, clarity and certification, there are around 25-30 important parameters along with dark spots in solitaire, which play an important role in fixing up its price. Hence, it is important for consumers to understand the product they are purchasing.
With the global economy on a revival and diamond gaining popularity with confidence created by the industry, solitaire demand is expected to move further up, especially as an investment avenue going forward, said Jignesh Mehta, founder and managing director of Divine Solitaire, a venture of R S Diamonds.