Editor’s Note
This article highlights a significant shift in the global diamond market, with India’s new exchange poised to influence pricing. We have trimmed the draft for clarity and conciseness, focusing on the core development.
India will now be able to set diamond prices in the global market. Starting Monday, the world’s first diamond exchange, the Indian Commodity Exchange (ICEX), will enable retail buyers and investors to purchase high-quality diamonds at affordable prices. The exchange will now determine diamond prices. Until now, there was no effective platform to assess diamond prices and their quality.
Currently, India is the largest importer and exporter of diamonds. India exports the most diamonds in the world, with annual diamond exports worth $20 billion. Approximately $16 billion worth of diamonds are imported each year. India accounts for over 50% of the world’s total diamond processing business, but we had no means to set prices.
ICEX will commence trading in diamond contracts of three sizes: 30 cents, 50 cents, and 100 cents (1 carat). Based on current prices, a 30-cent diamond will cost 27,000 rupees (900 rupees per cent).
Through a Systematic Investment Plan (SIP), you can purchase a diamond after two and a half years by paying 900 rupees every month. For this, you need to open an account with a broker on ICEX. Additionally, you must complete KYC rules and deposit some money.
ICEX CEO Sanjit Prasad explained that due to lab-grown diamonds, many people fall victim to fake diamonds. They lack accurate information about pricing. Now, they can purchase diamonds with certification from Natural Diamond Dealers. The price of such diamonds will be 30-35% lower than the price of diamonds at retail jewelers. Traditionally, most people do not invest in diamonds.
Surendra Mehta, National Secretary of the Indian Bullion and Jewellers Association (IBJA), says that gold is always the preferred investment option. The country has never had electronic trading of diamonds before.
