Diamond trade turns to certification

Diamonds are not far behind gold in global markets in terms of action.

The increasing number of jewellery brands in the market has led to a boom in the process of certification of diamonds, with buyers looking for improved quality and standardisation in the industry, according to the International Gemological Institute (IGI) that undertakes the certification and appraisal of gemstones.

Diamond certification is steadily growing in the country and has seen over a 70 per cent jump in the number of stones graded daily in the last year, from roughly 300 diamonds a day, to over 500stones today.

According to managing director of IGI, Tehmasp Printer, winning the buyer's confidence has become one of the most important factors in purchase of stones.

Rising exports has led to use of internationally valid common standards, he added.

In April 2004, IGI had opened a branch office in the gems and jewellery complex at the Santacruz Electronics Export Processing Zone (SEEPZ) with 20 gemologists.

Printer said IGI is planning to double the headcount over the next year owing to excellent response.

"A number of exporters and diamantaires are now using the facility in India to certify diamonds before exporting to certify pieces once and for all, rather than face rejection," said Printer.

The Indian chapter of the IGI, now stands third in certification only after the head office at Antwerp and New York.

Another clear trend in the sector is the rising number of co-branding exercises undertaken by jewellery brands with IGI.

In the recent past, Diamond Trading Company's (DTC) Sangini, Arisia and Asmi brands and Gitanjali's D'damas brand have been signed on.

Mehul Choksi, chief executive officer, Gitanjali group, said, "For years consumers were being cheated on the caratage of gold, but this has improved with hallmarking. Similarly, quality assurance is extremely important for diamonds, and that is why branded jewellery brands like ours are using the certification as an added tool to demonstrate the quality they offer."

It currently costs Rs 2000 per carat to assay the quality of a diamond.