Certified polished diamonds in India have experienced a notable decline in prices, plummeting by 35% during the Dussehra festival when compared to the previous year’s Navratri-Dussehra period. According to a report by Economic Times, certain categories of diamonds are currently priced at levels last witnessed in 2004. This price downturn can be attributed to several factors, including the Russia-Ukraine conflict, economic recessions in both the US and China, and the increasing popularity of lab-grown diamonds.

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Notably, the Indian diamond trade, responsible for cutting and polishing approximately 90% of the world’s diamonds, is now looking to clear its inventory in the domestic market by offering diamonds at lower prices. This presents an appealing opportunity for Indian buyers to acquire larger diamonds at more affordable prices.

Suvankar Sen, the Managing Director & CEO of Senco Gold & Diamonds, reported a 20% increase in sales during Dussehra at their stores in India due to the drop in diamond prices. Kirit Bhansali, Vice-Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), highlighted that the most substantial price reductions have occurred in diamonds ranging from 0.25 carats to 3 carats, enabling Indian consumers to access larger diamonds that were previously beyond their reach.

However, the domestic market may experience further declines in polished diamond prices as rough diamond prices have also started to decrease. Over the past three months, rough diamond prices have fallen due to a significant decrease in demand from the US, a major buyer of polished diamonds. Vijay Mangukiya, the Regional Chairman of GJEPC (Gujarat), warned that the Israel-Hamas conflict could further impact global demand for polished diamonds, potentially leading to more price reductions.

In comparison to 2004, when a carat of slightly included (SI) quality diamond was priced at approximately $7,000, today it still commands a similar price. The clarity grade of a diamond encompasses factors that affect the passage of light through the gem. Smaller diamonds, which are produced during the process of cutting and polishing rough diamonds, have experienced price declines of 10-15%. A prominent diamond trader with over 30 years of experience in the Surat diamond trading industry, who chose to remain anonymous, expressed that the current industry recession is more severe than the one experienced in 2008.

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