Mumbai Polished Diamond Prices Down By Up To 15%

(IDEX Online News) – Polished diamond prices are declining in Mumbai. From the smallest to the carat-plus sizes, prices for the +VS clarity rounds have come fallen, some by as much as 15 percent.

Prices of lower clarities have also softened, though to a lesser extent. Even at reduced prices, business activity has slowed down significantly.

There has been strong buyer resistance to higher polished prices for nearly a year. An uncertain global economic outlook, with fears of European countries failing financially and an uncertain U.S. economic recovery, has been instrumental in slowing consumer spending.

In India, a monsoon that has so far dropped 25 percent less rain than normal has also raised fears of poor agricultural output accompanied by higher food prices. This means that the growth in the country’s diamond consumption, which has been fuelled by strong rural demand, is likely to flag.

Business sentiment is at very low levels and even the upcoming India International Jewellery Show (IIJS), the country’s single biggest gem and jewelry trade show, has generated no lift in demand for diamonds in Mumbai.