While buying in the precious metals has been slow, the diamond sector has shown a lot of resilience. Gold and silver prices are taking support as investors await more clarity on global uncertainties including the trade tensions and Brexit. Then it’s about the festival buying back home in India, especially in gold and silver, that is expected to pick up.
According to President of Forevermark Sachin Jain, the demand for diamonds in India has been solid in the first quarter of the year and the second quarter leading up to Akshaya Tritiya was also good enough. "We saw slowing down post-Akshaya Tritiya and over the last 20 days, I have seen that demand is going up. So, on-ground demand for diamonds in India is steady and strong,” he observed.
While domestic demand was strong, manufacturing side continues to be a little slow. "India is a very important centre for diamonds globally. A lot of manufacturing happens here. As many as 14 out of 15 diamonds coming to India for some reason or the other, be it cutting, polishing or trading, have been impacted,” he noted.
Talking about prices of diamond, he said, “From the Indian perspective, the demand has moved from very small diamonds to slightly bigger ones. Forevermark has been growing at the rate of about 30 percent CAGR over the last 7 years and 2019 has been the strongest year.”