Diamond Trade markets - Raj Ouellet

Jan. 30, 2013 - PRLog -- India’s ‘diamond discovery,’ isn’t just about the bling. It is being driven by price moves and currency devaluation. Persistently high gold pricesover the past year have been coupled with a depreciation of the rupee against the dollar. In fact, the rupee

has lost 25 percent of its value against the dollar over the same period. This exacerbated the price of gold for Indians, because gold is priced in dollars.

At the same time, diamonds became cheaper. By the end of the second quarter of this year, the average asking price for 1-carat diamonds dropped about 18 percent year-over-year, according to the Rapaport Diamond Trade Index. In dollar terms, diamond dealers can now purchase a 1-carat diamond for about $8,384, down from $9,175 last year, according to Rapaport’s index.

Yet varying cuts and qualities make the value of all diamonds difficult to assess. Diamond exchanges do not have official rates, and unlike gold, are not quoted on a daily basis.

“Before De Beers started marketing in India, the market was entirely gold focused. Now De Beers spends $4 to $5 million per year on consumer marketing in India,” said Forevermark CEO Lussier. Over the last five years, Lussier adds that DeBeers’ marketing investment has been rewarded with over 20 to 30 percent sales growth “year in and year out.”