A significant increase in rough diamond prices over the past six months has forced Indian consumers to make the shift from diamond-studded gold jewellery to plain gold jewellery, The Economic Times reported.
Sandeep Kulhalli, vice president of Tanishq’s retail and marketing division, told the newspaper that rough diamond prices soared by around 50 percent in the last four sights held by diamond miners.
“While the value of diamond jewellery sales has gone up, we are noticing a gradual shift in buyers’ preference to gold from diamond jewellery because of [the dramatic rise in diamond prices],” Kulhalli was quoted as saying. Plain gold jewellery generates 70 percent of Tanishq’s total turnover, while the rest comes from studded jewellery sales.
Rajeev Sheth, chairman and managing director of Tara Jewellers, also noted the rising demand for plain gold jewellery. Sheth was reported to have said that investors who initially allotted $2,230 for purchases of diamonds weighing around 50 points were shifting to gold. The same amount could buy them 50 grams of gold, he added.