Buying Diamonds: An Insightful Interview with Amit Pratihari

Hyderabad: As the festive season approaches, many consider purchasing jewellery and ornaments. While gold has long been the traditional choice, an increasing number of people are exploring the allure of diamonds. Amit Pratihari, vice- president of De Beers Forevermark, shares insights into what makes buying diamonds an appealing option, with B Krishna Mohan .

Excerpts:

Key considerations when buying diamonds:

When purchasing diamonds, there are crucial factors to bear in mind. Firstly, it is imperative to choose a reputable retailer and a trusted brand. This ensures that the diamond you purchase is genuine and authenticated as a natural diamond. Beyond this, you should focus on colour and clarity.

Pricing dynamics:

Unlike gold, where pricing is straightforward and based on weight, diamonds have a a different pricing structure. The price of a diamond is influenced by its colour, clarity, carat weight, and cut. In South India, consumers tend to favour diamonds with better colour quality, while in North India, colour may be of less concern. This diversity in preferences leads to a wide range of pricing options. You can find diamonds priced anywhere from Rs one lakh to well over a crore. For those interested in diamond jewellery, there are options available starting from Rs 30,000 to 40,000 and upwards.

Diamonds as an investment:

Diamonds hold a unique place as both an emotional purchase and an investment. People often buy diamonds to celebrate special milestones with loved ones, rather than with future returns in mind. However, it's worth noting that diamond prices have shown a consistent upward trend over time. Buyers find comfort in the idea that their investment in diamonds can provide financial security for unforeseen circumstances. Unlike gold, diamonds may not have a clear price tag, but they offer a secured form of investment.

Reselling diamonds:

The process of reselling diamonds depends on the exchange policies of the retailer. Depending on the condition of the diamond, one can expect to receive up to 80% to 85% of its prevailing value in cash or up to 100% in exchange value. The value is determined based on the invoice, which factors in labour, diamond quality, gold, and other components.

Lab-grown diamonds: A contender?

In recent years, lab-grown diamonds have found a place in the market. However, they are not a direct threat to natural diamonds. The emotional significance of a natural, responsibly sourced diamond remains unmatched. Natural diamonds are associated with love, emotion, and trust, which are attributes that consumers hold dear.

Demographics of diamond buyers:

The target demographic for diamond purchases typically falls within the age group of 25 to 45, comprising individuals with disposable income. Diamonds are accessible at various price points, starting from around Rs 30,000. This accessibility widens the audience for diamond jewellery. Men typically purchase items like rings, bracelets, earrings, and wedding bands. Current trends in jewellery, especially with diamonds, emphasise daily wear pieces. Consumers are seeking iconic designs that are both international and simple, yet carry a story behind them.  International design and self-purchase segments account for most sales. They cater to those who wish to celebrate personal milestones with the assurance of a trusted purchase. The focus is on daily wear jewellery- engagement and wedding rings, and 'mangal sutra'.

Brand presence in Hyderabad:

De Beers Forevermark maintains a strong presence in South India, notably in Hyderabad, a city with a blend of international flair and a high acceptance of global design. The brand is available in numerous organised retail outlets, with one exclusive store as well in Hyderabad. Our focus remains on being a diamond mining company and not getting into manufacturing .

Sourcing and Market Outlook:

De Beers sources its diamonds from its own mines, ensuring a direct connection to the source. The diamond industry is poised for significant growth, with expectations that it will reach nearly $18 billion by 2030, from the current about $ six billion.

Distinguishing real from fake diamonds:

Identifying a fake diamond with the naked eye can be challenging. Therefore, purchasing from a trusted brand is paramount. De Beers Forevermark, for instance, employs a unique encryption number on diamonds, assuring buyers of the authenticity, rarity, and responsible sourcing of the diamond.