Indian Report: Polished Diamond Prices Up 4-5% On Shortages

Finance and Trade
25/02/2016 08:39

Prices of some categories of polished diamonds have risen by 4-5% since the start of the year in India due to shortages in the market, according to the Economic Times. The report cited Vipul Shah, the managing director of diamond manufacturer Asian Star Company, as saying: "It is good for the manufacturing industry, which has been languishing for so long. But rising prices can affect the retail demand for diamond [jewelry] in India," he said. Meanwhile, Ashok Gajera, the managing director of Laxmi Diamond, said that shortages are expected to support diamond prices throughout the first quarter of 2016 as rough diamonds bought in January will take a few months to pass through the manufacturing process. And an unnamed industry executive commented: "That, together with the De Beers' rough price correction, should help restore some profitability and confidence in the manufacturing sector."