Right time to buy diamonds? Certified polished diamond prices drop by 35% to 2004 levels; now get larger diamonds at lower prices

Certified polished diamonds prices have dropped significantly, falling by 35% during Dussehrawhen compared to last year’s Navratri-Dussehra period. Some categories of diamonds are now priced at levels last seen in 2004, according to an ET report. Several factors, including the Russia-Ukraine war, economic recession in the US and China, and the increasing popularity of lab-grown diamonds, have contributed to the decline in prices.
The Indian diamond trade, responsible for cutting and polishing 90% of the world’s diamonds, is looking to sell off its inventory in the domestic market at lower prices. This presents an opportunity for Indian buyers to purchase larger diamonds at a more affordable price.
Suvankar Sen, the managing director & CEO of Senco Gold & Diamonds, stated that the decrease in diamond prices has resulted in a 20% increase in sales during Dussehra across their stores in India.
Kirit Bhansali, vice-chairman of the Gem & Jewellery Export Promotion Council (GJEPC), mentioned that the maximum price drop has occurred in diamonds ranging from 0.25 carats to 3 carats. This allows Indian consumers to own larger diamonds that would have otherwise been out of their reach.
However, the domestic market may witness a further decline in polished diamond prices as rough diamond prices have also started to fall. Over the past three months, rough diamond prices have decreased due to a significant decrease in demand from the US, the largest buyer of polished diamonds.

Vijay Mangukiya, regional chairman of GJEPC (Gujarat), stated that the Israel-Hamas conflict will further impact the demand for polished diamonds in other global markets, potentially leading to further price reductions.
In 2004, a carat of slightly included (SI) quality diamond was priced at around $7,000, and today it still commands a similar price. A diamond’s clarity grade encompasses any factors that hinder the unobstructed passage of light through the gem. The prices of smaller diamonds, which are produced during the process of cutting and polishing rough diamonds, have fallen by 10-15%.
A leading diamond trader with over 30 years of experience in diamond trading industry in Surat, who preferred to remain anonymous, expressed that the current recession in the industry is worse than the one experienced in 2008,.
Between April and September of FY24, the overall gross exports of cut and polished diamonds have decreased by 28.76%, amounting to US$ 8702.23 million compared to the same period in FY23.