idex india dec 2010 no hindi

8/7/2019 IDEX India Dec 2010 No Hindi

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Special ReportPredicting HigherDiamond PricesNext Diwali

Mumbai DiamondMarket ReportWhat’s hot; what’s available& how much it costs

December 2010

magazineIndia retail

N e w !

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N D R e

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B e N c

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A p r i c e

l i s t t o

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y o u r c u

s t o m

Can You AssureYour Customer

About TheDiamond?


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D E c E m b E r

Contentsmagazine india retail

05 From thE EDitor’s DEskby Vi od Kuriy

06 mumbai DiamonD markEt rEportS ro Do r, Fi ci Uphe v s D mp tr di I Mumb i

10 spEcial rEportPredic i Hi her Di mo d Prices nex Diw i

11 DiamonD rEtail bEnchmarka di mo d price is o ssure your cus omers

18 covEr story C You assure Your Cus omer abou theDi mo d? She’s Sure abou he go d

24 polishED DiamonD pricEsPrices We ke i l e Oc ober

26 rEtail Et cEtEratrue love never Dies: B ub es for overs

30 Gia outrEachDi mo d tre me s

08 e qEcbZ f gjk cktkj dh f jik sVZMk Wyj c< +u s] vkfFkZd mFky&i q Fky gksus l s e q EcbZ ds dkjksckj e sa eanh

12 f o'k s"k f jiksV Zvkxkeh f nokyh ij Mk;e.M dh dherks a e sa o ` f ) dh laHkkouk

22 vkoj.k dFkk Mk;e.M m|k sx dks f o’okl dh ryk’k

THE ONLY GLOBAL, REAL-TIME, NEUTRAL DIAMONDMARKETPLACE. GO TO WWW.IDEXONLINE.COM

iDeX oNliNe

w w w . i d e x o n l i n e . c o m

D E c E m b E r 2 0 1 0 VOL. 1 No. 01

EDITORIAL DEPARTMENTEDItOR-In-CHIEF v d k

EDItORS Ed G , D e e m xIDEX OnlInE RESEaRCH ke G

IntERnatIOnal CORRESPOnDEntSt k z , W e he

ADMINISTRATION & MARKETINGManagIng DIRECtOR y b z MaRKEtIng ManagER k d bed

SalES ManagERS a k e, o D d , t k z , y b z

PRODUCtIOn & CIRCUlatIOn he e D , ve p d aCCOUnt ManagER s D

ART DEPARTMENTgRaPHIC DESIgnERS

b m de (red De g e s d )i a e d (red De g e s d )

p ed sap p e , l we p e , m 400 013

IDEX INDIAOFFICE # 20, Kala BHaVan, 4tH FlOOR, 3 MatHEW RD., OPERa HOUSE,

MUMBaI 400 004, InDIatEl: +91-22-6633-2187, FaX: +91-22-6633-2186

EMaIl: [email protected]

IDEX USA

7 WESt 45tH St. SUItE # 1602 nEW YORK, n.Y. 10036, U.S.a.tEl: +1-212-3823528, FaX: +1-212-3822671

IDEX BELGIUM74 langE HEREntalSEStRaat, 2018 antWERP, BElgIUM

tEl: +32-3-2341157, FaX: +32-3-2342463

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IDEX ISRAELMaCCaBI BlDg., 1 JaBOtInSKY St., P.O.BOX 3107,

RaMat gan 52130, ISRaEltEl: +972-3-575-7455, FaX: +972-3-7511203

iDEX m g z e - i d re ed i d idex o e s.a.. re f d d e e e

e ed . a g e e ed. n f e e d ed, ed e e e

ed f e w e w e

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PUBlISHED BY YaROn BaRzIlaY FOR IDEX OnlInE S.a

ISSn 0334-68382003 IDEX OnlInE S.a.


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From theEditor’s Desk

B elief in the intangible requires a lot of work. Tomaintain that belief, the believer has to know that his or her belief is shared by others and

that there is no variance in this shared belief. Withoutthis certainty, without the assured support of one’s peersin endorsing and participating in the same belief, onestands alone and in danger of ridicule. No one wantsto stand alone and no one wants to be r idiculed.

Diamonds are essentially a belief system. Their value isin the eye of the beholder and this value is maintainedbecause enough people around the world perceive that

value as something worth holding. In today’s competitive world, there are a myriad other luxury products thatall offer the consumer some intangible value -- anexperience, the approval of others, some social markthat sets them apart or even a neighbour’s envy. Al l of these products carry with them the promise that the

stated attributed, whatever it is, will be delivered withoutfail. And all of them make good on that delivery.

Apart from their symbolism in the relationship betweenmen and women, diamonds offer their owners theperception of great beauty and very importantly, theperception of great value. All of these attributes requireuniversal acceptance in order to even exist. Universalacceptance of these attributes is in turn based on

widespread and unvarying adherence to a specifiedset of rules in assessing value. Use different rules and

you destroy the attributes themselves because they nolonger have universal acceptance.

Diamonds in India are today teetering on the edge of a dangerous precipice because in different parts of the country, they are assessed and valued differently.This is causing a great deal of consumer angst andposes the poses the imminent threat of the diamond’sattributes being rejected altogether because they arenot universally accepted.

It is to the Indian jewellery retail industry’s credit that itrecognizes this danger and is will ing to take immediatecorrective action. But it is faced with a daunting task. Itneeds to quickly and collectively institute a nationwidesystem of ensuring that both the assessment and theperceived value of the diamonds it sells is based oncommon systems that will return the same resultsanywhere in the country. The grading of diamondsand the way they are priced need to be standardizedon a common platform. This is far more easily saidthan done and the pitfalls are many.

The very first is the reality that no matter how hard onetries, not everyone can be convinced to make the necessary change. Which then throws up the first hurdle. Won’t the

willing adopter of a nationwide system be at a disadvantagein his own market if his nearest rival refuses to accept thesystem and continues to his own arbitrary rules?

The answer is yes, in the short term, adopting a standardgrading and pricing system might be a disadvantage

when faced with competition that doesn’t adhere tothe same rules. But in the long term, adopting andadhering to standardization is a clear advantage. Thisis borne out by the “one gold price” policy adoptedby the vast majority of retailers under the umbrella of the All India Gems & Jewellery Trade Federation (GJF).Those who have refused to abide by the one-price normhave, after enjoying a short advantage, only succeededin shrinking their own profit margins.

So our exhortation is, go for it! Whatever the short-term problems, you’ll be a winner in the end. And if

we don’t adopt standardization as an industry, we allstand to lose a great deal more. ■

Vinod KuriyanEditor

The Vital Need To Bolster Belief


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MumbaiDIaMOnD MaRKEt REPORt

t he Mumbai diamond market is experiencinga slowdown just before Diwali due acombination of factors. A prime rea son is

the rupee, that has strengthened a great deal againstthe US dollar. Manufacturers who bought roughsome weeks ago, did so when it took over R s.46 tobuy a single greenback. Today, the dollar is tradingat just over Rs.44. What this means is that in dollarterms, the same goods fetch manufacturers, whohave converted rupees to dollar s to buy rough andnow want value addition that adds up to a de centmargin in r upee terms, so much less, that in somecategories, margins would be completely wipedout unless polished selling prices were pushed up.Their attempts to do so have been met with strong

resistance from both domestic and internationalbuyers, thus stalling transactions.

Additionally, the recent bank defaults by some bigplayers have resulted in raids by the tax authoritiesin the Opera House diamond district, knocking alot of momentum out of usual trading. As if this

weren’t enough, there have also been several failuresamong smaller operators and together with the raids,they have damped trading all round.

There is disappointment that the end stretch of the run-up to Diwali has ended so di sappointingly,particularly as the period from September to midOctober had been strong. ■

Strong Dollar, Financial UpheavalsDamp Trading In Mumbai


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Size in Ct. (Sieve) Comments Forward Call

▲ -0.01 (-2 ) Very ood dem d for SI+ oods.good dem d for ower piqué oods.Very hoc e ory over .

Shor es & prices re ike y o i cre se. Pricesm y o up by 2%-3%.

▲ -0.02 (+2-6.5) Very ood dem d for SI+ oods.good dem d for ower piqué oods. Dem dfor +4 sieve is improvi .

Shor es & prices re o he rise.Prices m yo up by 2%-3%..

▲ 0.03-0.07

(+6.5-11)

good dem d for ower piqué & SI+ oods.+8sieve is he mos w ed sieve, hou h he

focus is ow shif i o -8 sieve..

H s bee he ho es c e ory i he recep s . Some si s of prices sof e i i he e r

fu ure.

▲ 0.08-0.14 (+11-14) good dem d for piqué & SI1+ oods. ac ivi y wi rem i s b e.

▲ 0 .15-0.17

(+14-15.5)

good dem d for piqué & SI1+ oods. ac ivi y wi rem i s b e, wi h shor es of oods.

▲ 0.18-0.22 (1/5) F ir dem d for SI1+ oods. Over , ow c ivi y wi be see i hisc e ory.

▲ 0.23-0.29 (1/4) good dem d for VS+ & piqué oods.Dem d for VS+ oods m i y for domes icm rke .

Due o shor es, price for VS+ oods m y oup by 1%-2%.

▲ 0.30 (1/3) good dem d for VS+ & piqué oods.Dem d for VS+ oods m i y for domes icm rke . g-J co ours i re er dem d.

Dem d & prices wi rem i s b e.

▲ 0.40 (3/8) good dem d for VS+/g-J co .Dem d for his c e ory is m i y for hedomes ic m rke .

Dem d & prices wi rem i s b e.+0.45 c .will be dif cult to nd.

▲ 0.50 (1/2) good dem d for I2+/g-J co . Over , everyc ri y i ood dem d.

Dem d & prices wi rem i s b e. Be erdem d see for D&F co ours.

▲ 0.75 (3/4) good dem d for I1/I2 & VVV/VS c ri y.+0.80c . I re er dem d.

Dem d for +0.90 c . expec ed o i cre se s er ive o 1 c r .

▲ 1.00 (4/4) Over very ood c ivi y cross he bo rd.Shor es see i H & ower co ours.

Severe shor es wi be see for I-l co ours sor her m rke is he vi y buyi hese co ours

o y.

▲ +3.00 Some dem d for VVS/VS H-K co ours. Dem dfor VS/J-K co ours i cre si i +5 c r si es.

Dem d & c ivi y wi depe d upo ski prices. Hi her ski prices m y see ower

c ivi y over .

M U M B a I D I a M O n D t R a D I n g



Special Report

8 IDEX MagazInE – InDIa REtaIl | nO 01: SPECIal REPORt

What will diamond prices be during Diwali2011? The diamond and jewellery

retailing industries’ overwhelminganswer to that question has been “higher”. Onediamond dealer, who requested anonymity,noted that higher prices were widely expected for a variety of reasons. First,he said, despite the many publicly

voiced fears of a double-dip recessionin the US, the industry doesn’treally see any major threat to thefragile recovery of the Americaneconomy. This doesn’t meanthey expect any growth out of the US market, but rather thatthings will remain stable, withno drop from current levels of demand. This status quo, coupled

with strong growth in eastern markets,particularly China and India’s own domesticmarket, means almost certainly that diamondprices will be higher by Diwali 2011.

Another factor that many other diamond dealershave noted, is that the cur rent shortfalls in diamond

production are likely to be exacerbated as workersmigrate away from the diamond polishing industry to agriculture and agriculture-based industries.This is because the diamond industry is no longerthe top-paying among comparable industries thatemployed untrained labour and agriculture, with agood monsoon and surging consumer demand, is ableto pay comparable or even better prices. Once these

workers, leave, industry watchers note, they nevercome back to polishing diamonds. This is testified

to by the fact that the diamond polishing factories incentres li ke Surat have not been able to come back up

to full production capacity because the labour thatleft during the recession, has not come back even to

this day. With more likely to walk away from theindustry, production shortages are only likely

to get worse.

“The only way this can be remedied,”this diamond dealer noted, “is if the

diamond industry pays its workersmore. And the only way they canpay their workers more is if eitherrough prices go down or polishedprices go up.” Both of these options,

the diamond dealer notes, are toughasks in the current market and so he

thinks the result will be a combinationof the two. A limited reduction in polished

prices and a small increase in polished prices.

Explaining this, he notes that the miningcompanies are going to strongly resist going

down with rough prices, but will probably haveto do so to some extent as they will face a sharp

fade in demand if cutting centres like India don’tsee current prices as b eing viable. Given the fragilenature of the recovery in the US market and thelack of comparable purchasing power in the growthmarkets like India and China, raising polished pricestoo is a difficult proposition. However, continuedgrowth in the Indian and Chinese consuming marketscoupled with a continued but slow recovery in theUS, will probably allow a small rise in polished prices,he notes.

Predicting Higher Diamond PricesNext Diwali

Despite differences in perspective, leading opinion in both the diamond processing and jewellery retail industries predicts higher diamond prices by Diwali next year.A look at why they are so confdent about higher prices.

By Vinod Kuriyan

EMERalD JEWElInDUStRIES


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Mehul Choksi, chairman and managing directorof the Gitanjali group, which apart from being agiant diamond manufacturer, is also one of India’stop jewellery retail chains, is emphatic when hesays, “I don’t see any problems in the medium term.Diamond prices are definitely going to be higher by Diwali 2011.”

It must be noted though that the diamondmanufacturing industry doesn’t see prices rising asa result of a smooth upward pressure. Most expectcurrent price levels to remain unchanged throughto the end of the Christmas buying season this

year. January 2011 is when they expect the price correctionsto happen as manufacturingdemand fades rapidly in thepost-Christmas period. Rough

prices wil l then probably have toundergo a downward correction,most think. Later, as productionshortages get worse, there willbe a steady but strong upwardpressure on polished prices.

The Indian diamond jewellery retail industry, however, seesdiamond prices in the mediumterm as being affected by factorslike the general state of theeconomy and the strength of therupee, that affect the consumer’spurchasing power. Coupled withthis, they see the perception of

value and a willingness or resistance to paying morefor a product as being significant in determiningdiamond prices in the medium term.

Ravinath Mohandas of V.N.M. Jewel Crafts inKochi thinks that economic conditions will bethe determining factor for diamond prices in the

medium term. “People are, in a small way, turningto diamonds. Diamond sales won’t match those of gold as long as gold prices stay high. However, if there is a crash in the pr ice of gold but the economicconditions are good, diamonds will sell even if their prices are higher.” He observes, however,that a consumer perception that diamonds aren’t

worth higher prices could be a real damper to any significant price appreciation. This perception couldcome about because there is a real chance that other

products are seen as better investments. Diamonds,he believes, will not fall behind other products interms of the customer satisfaction they offer.

Mohandas thinks that a shortage of diamonds, asmany experts predict is almost a certainty in themedium- to long-term future, could well lead to asignificant market for recycled diamonds in India, the

way there is in gold. His prediction is that diamonds won’t appreciate more than between 10- and 15percent by Diwali 2011. “As the rupee appreciates,it will be difficult for Indian diamond prices to goup substantially,” he notes.

K Srinivasan of Emerald JewelIndustry India Pvt. Ltd. of Coimbatore, however, doesn’tthink there is much scope for a

rise in diamond prices in India.“India is a very price sensitivemarket,” he notes, adding, “itresists any kind of price rise.” Inanswer to a question whetherdiamonds would be considered

value for money even with higherprices as they help offset the highprice of gold in jewellery, he notesthat diamonds are not consideredan investment and so wouldn’tbe considered as helping offsetthe high gold prices. He statessuccinctly that higher diamondprices will bring trading volumesdown. He does think, however,

that Indians would be willing to pay more fordiamonds as against higher prices for rubies, emeralds,sapphires and other coloured gemstones.

Srinivasan thinks that by Diwali 2011, diamond pricesin India will be at least 5 percent higher than they

were during the festival this year.

Suresh V.N., diamond manager for the Joyalukkasgroup, thinks diamond prices in India will go up dueto the country’s fast-paced growth. “While a weakdollar against the rupee will affect rough diamondprices,” he says, “the appreciation of the rupee willgive Indians greater purchasing power and Indianconsumers will be able to take a 30 percent rise indiamond prices. So we are expecting this industry to outperform expectations in the near future.” ■

SRInIvaSan: SCOPE fOR MODESt InCREaSE Only



IF VVS1 VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3

D 1271674 935864 798237 605559 473437 401871 335810 264244 225708 154142 88081

E 869803 820257 693640 556013 445912 374346 319295 247729 214698 148637 82576

F 787227 715661 633084 506468 423891 357830 302780 236719 203688 143132 77071

G 556013 533993 511973 445912 396366 335810 291769 225708 198183 137627 71566

H 462427 440407 412881 374346 341315 319295 280759 220203 187173 132122 71566

I 396366 385356 357830 319295 302780 286264 253234 203688 170658 121112 66061

J 330305 319295 308285 291769 264244 253234 236719 181668 148637 110102 66061

K 297274 286264 275254 264244 225708 220203 198183 165152 137627 99091 60556

L 264244 253234 247729 236719 209193 198183 176163 154142 126617 88081 55051

M 220203 214698 203688 192678 170658 159647 143132 121112 110102 82576 55051

N 176163 176163 159647 148637 132122 121838 111244 95352 93586 77071 55051


D 3833148 2970382 2637600 2039826 1614606 1066133 788815 517660 443708 234179 129415

E 2908755 2643763 2218542 1774834 1485191 1004507 745677 493009 412895 228017 123252

F 2508185 2310982 1947387 1614606 1380426 942880 714864 468359 388245 215692 117090

G 2009013 1805647 1626931 1448215 1214036 850441 677888 443708 369757 209529 110927

H 1522167 1460540 1355776 1183223 1016832 733351 647075 419058 351269 203366 110927

I 1084621 1053808 1016832 912067 776490 640912 560798 382082 326619 191041 104764

J 881254 868929 838116 758002 684051 554636 493009 351269 289643 172553 98602

K 813466 776490 745677 677888 610099 474522 412895 320456 258830 160228 98602

L 610099 579286 548473 523822 474522 357432 301968 264993 203366 154065 92439

M 505335 493009 474522 443708 406733 320456 271155 240342 178716 141740 92439

N 406733 400570 400570 363594 338944 283480 240342 215692 154065 129415 92439


D 2167494 1750252 1576852 1289659 937441 715273 585223 400986 314287 184237 102956

E 1696064 1587689 1354684 1154191 899510 699017 568967 390149 303449 178818 97537

F 1490152 1343846 1208378 1018722 861579 661086 531036 373893 292612 173400 92119

G 1072910 986210 899510 823648 753204 617736 509361 352218 276356 167981 92119

H 834485 780298 726111 688179 639411 552711 476849 325124 260099 162562 86700

I 677342 655667 617736 568967 525617 476849 433499 298030 249262 151725 81281

J 541874 520199 498524 466011 433499 395568 368474 270937 227587 135468 81281

K 487686 471430 455174 422661 395568 357637 330543 260099 195074 130050 75862

L 379311 368474 357637 341380 308868 281774 254681 216749 167981 124631 70444

M 325124 319705 314287 308868 265518 238424 216749 189656 140887 113793 70444

N 270937 270937 270937 246524 222168 195074 178818 162562 119197 102956 70444

R o u n

d 4 / 4 ( 1

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d 2

. 0 0 ( 2

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D 4909391 3901465 3567377 2876552 2259339 1375988 990938 543600 447338 237825 130238

E 3890140 3550390 3069077 2570777 2134764 1325026 962626 515288 419025 232163 124575

F 3510752 3063415 2763302 2378252 1953564 1257076 939976 486975 396375 220838 118913

G 2650052 2378252 2231027 2100789 1715739 1115513 866363 458663 373725 209529 113250

H 2015851 1913926 1783689 1659114 1392976 996601 798413 436013 356738 203850 113250

I 1455263 1381651 1325026 1223101 1070213 832388 707813 413363 339750 192525 107588

J 1172138 1115513 1081538 996601 883351 730463 617213 379388 300113 181200 101925

K 996601 934313 900338 838051 747451 594563 526613 345413 266138 164213 98602

L 685163 651188 622875 594563 526613 424688 368063 288788 215175 158550 92439

M 588900 566250 549263 515288 469988 379388 328425 266138 192525 141740 92439

N 492638 481313 475650 436013 413363 334088 288788 243488 169875 129415 92439


D 1521186 1231707 1135214 868438 698156 561931 459761 351916 278127 175958 102169

E 1203326 1152242 964932 817354 664100 539226 437057 334888 266775 170282 96493

F 1044396 953579 908171 749241 635720 510846 408677 323536 255423 164606 90817

G 732213 715185 681128 618691 556255 465438 380297 300832 244071 158930 85141

H 590311 573283 556255 505170 471114 431381 363268 278127 232719 153254 85141

I 522198 516522 499494 442733 408677 380297 323536 255423 221367 141902 79465

J 431381 425705 408677 368944 334888 323536 283803 227043 187310 130550 79465

K 351916 340564 329212 323536 289479 266775 244071 204338 170282 119197 73789

L 317860 306508 295156 278127 255423 244071 221367 187310 153254 113521 68113

M 266775 261099 249747 244071 215691 204338 187310 158930 136226 102169 68113

N 215691 215691 204338 190128 175958 164606 153254 130550 119197 90817 68113


D 3833148 2970382 2637600 2039826 1614606 1066133 788815 517660 443708 234179 129415

E 2908755 2643763 2218542 1774834 1485191 1004507 745677 493009 412895 228017 123252

F 2508185 2310982 1947387 1614606 1380426 942880 714864 468359 388245 215692 117090

G 2009013 1805647 1626931 1448215 1214036 850441 677888 443708 369757 209529 110927

H 1522167 1460540 1355776 1183223 1016832 733351 647075 419058 351269 203366 110927

I 1084621 1053808 1016832 912067 776490 640912 560798 382082 326619 191041 104764

J 881254 868929 838116 758002 684051 554636 493009 351269 289643 172553 98602

K 813466 776490 745677 677888 610099 474522 412895 320456 258830 160228 98602

L 610099 579286 548473 523822 474522 357432 301968 264993 203366 154065 92439

M 505335 493009 474522 443708 406733 320456 271155 240342 178716 141740 92439

N 406733 400570 400570 363594 338944 283480 240342 215692 154065 129415 92439


D 2446665 1975682 1779949 1455766 1058183 807399 660600 452633 354766 207967 116217

E 1914515 1792182 1529166 1302849 1015366 789049 642250 440400 342533 201850 110100

F 1682082 1516932 1364016 1149933 972549 746233 599433 422050 330300 195733 103983

G 1211099 1113233 1015366 929733 850216 697299 574966 397583 311950 189617 103983

H 941966 880799 819633 776816 721766 623900 538266 367000 293600 183500 97867

I 764583 740116 697299 642250 593316 538266 489333 336416 281366 171267 91750

J 611666 587200 562733 526033 489333 446516 415933 305833 256900 152917 91750

K 550500 532150 513800 477100 446516 403700 373116 293600 220200 146800 85633

L 428166 415933 403700 385350 348650 318066 287483 244666 189617 140683 79517

M 367000 360883 354766 348650 299716 269133 244666 214083 159033 128450 79517

N 305833 305833 305833 278276 250783 220200 201850 183500 128450 116217 79517


D 7251380 5490757 4941681 4159845 3163154 1927733 1307039 656504 489394 280506 149205

E 5437043 4893936 4309051 3730134 2984107 1784496 1265261 620694 459552 268570 137269

F 4774571 4297114 3939021 3491405 2566332 1629322 1211547 596821 441648 256633 131301

G 3580929 3222836 2966202 2727474 2267921 1503990 1145897 572949 417775 244697 125332

H 2864743 2596173 2387286 2148557 1796432 1307039 1032501 513266 393902 238729 119364

I 2065002 1933701 1868051 1671100 1503990 1104120 895232 453584 364061 226792 113396

J 1551736 1474149 1372689 1313007 1253325 984755 793772 411807 322284 214856 107428

K 1211547 1122024 1068310 1008628 948946 775868 656504 375997 292442 196951 107428

L 889264 853455 811677 775868 716186 596821 453584 328252 256633 179046 101460

M 769900 734090 704249 674408 644567 537139 405839 292442 220824 161142 101460

N 650535 614726 596821 572949 572949 477457 358093 256633 185015 143237 101460

Prices are in Rupees Per Carat Powered by www.idexonline.c

This price list reflects b enchmark retail prices for polished diamonds. Diamonds may, and should, sell at discounts compared to this list.For more education on prices and discounts please visit ww w.idexonline.com. Copyright 2009 by IDEX Online S. A. All rights reserve d.

DRAFT – DECEMBER 1st 2010

THE DIaMoND RETaIL BENcHMaRKDIaMoND RETaIL BENcHMaRK FoR PoLISHED DIaMoNDS

D R A F T – D E C E M B E R 1 s T 2 0 1 0



IF VVS1VVS2 VS1 VS2 SI1 SI 2 SI3 I1 I2 I3

D 596943 401000 359989 341761 314420 277966 232398 191386 145818 100250 63795

E 401000 359989 346318 332648 305307 264295 223284 186830 141261 95693 59239

F 359989 346318 337205 318977 287080 255182 218727 182273 136705 95693 59239

G 346318 337205 323534 300750 273409 236955 205057 173159 127591 91136 54682

H 287080 268852 255182 241511 218727 200500 177716 164045 123034 86580 54682

I 246068 236955 227841 218727 200500 182273 159489 150375 118477 82023 50125

J 209614 200500 191386 182273 173159 159489 141261 127591 100250 70340 50125

K 173159 168602 164045 159489 150375 141261 127591 113920 91136 60961 45568

L 141261 136705 132148 127591 118477 109364 104807 91136 72909 54682 41011

M 123034 118477 113920 109364 104807 95693 91136 86580 63795 50125 41011

N 104807 100250 95693 91136 91136 82023 77466 70340 54682 45568 41011


D 2055279 1660981 1458903 1197680 1025175 734380 502730 404156 345011 182363 103503

E 1601836 1473689 1355400 1128678 961102 709737 478086 384441 320367 172505 98575

F 1394829 1311041 1197680 1039961 887171 660449 458371 369654 305581 162648 93646

G 1232181 1148393 1084320 906886 793525 586518 448514 349940 290795 152790 88717

H 1020246 970959 882242 759024 650592 492873 414013 320367 266151 142933 88717

I 778739 734380 694950 635806 522445 433728 359797 285866 241508 133076 83788

J 556946 532302 507659 473158 428799 345011 300652 231650 192220 123218 78860

K 448514 433728 414013 399227 354868 295724 261222 207006 172505 113361 73931

L 325296 310510 295724 271080 256294 211935 192220 167577 142933 103503 64073

M 241508 231650 216864 202078 192220 162648 147862 133076 118289 98575 59145

N 157719 152790 138004 133076 131123 120654 120631 115408 99671 93646 54216


D 1168406 849323 783630 713244 666320 539625 394161 295621 229927 136079 84463

E 849323 783630 713244 666320 600626 516163 384776 286236 225235 131387 79771

F 783630 713244 666320 600626 553703 492701 375392 276851 215850 126695 79771

G 694474 647550 600626 553703 530241 445777 361314 262774 206465 122002 75078

H 558395 511471 464547 441085 417623 375392 309698 234620 187696 117310 70386

I 441085 417623 394161 370699 347237 328468 281544 220543 173619 112617 70386

J 337852 323775 309698 295621 276851 262774 234620 178311 140772 103233 65694

K 286236 272159 262774 248697 244005 234620 215850 159541 126695 98540 61001

L 206465 197081 187696 173619 168926 164234 154849 131387 107925 89155 56309

M 168926 159541 150157 145464 140772 140772 131387 117310 98540 84463 51616

N 131387 123303 122008 117310 117289 107925 107904 103233 89155 79771 46924

F a n c y

4 / 4 ( 1

. 0 0 - 1

. 4 9 )

F a n c y

3 . 0

0 ( 3

. 0 0

- 3 . 4

9 )

F a n c y

2 . 0

0 ( 2

. 0 0

- 2 . 4

9 )

F a n c y

4 . 0

0 ( 4

. 0 0

- 4

. 9 9

)

IF VVS1VVS2 VS1 VS2 SI1 SI2 SI3 I1 I2 I3

D 2858534 2306887 2076199 1835480 1594761 962875 661976 481437 391168 210629 120359

E 2241693 2076199 1940794 1685031 1479417 927770 636901 456362 366093 200599 115344

F 2026049 1940794 1790345 1544611 1313923 867590 616842 431288 346033 190569 110329

G 1715121 1554641 1424252 1359057 1138399 802396 601797 406213 325973 180539 105314

H 1399177 1318938 1208608 1123354 947830 702096 531587 371108 305913 170509 100299

I 1028069 982935 927770 862575 807411 611827 466392 325973 265794 160479 95284

J 747231 717141 692066 651946 621857 496482 406213 280838 225674 150449 85255

K 591767 561677 536602 516542 481437 386153 346033 265794 205614 135404 80240

L 421258 411228 401198 381138 366093 295883 260779 215644 170509 120359 75225

M 330988 315943 305913 295883 290868 240719 210629 175524 140419 110329 70210

N 240719 220659 220622 210629 210604 185554 160479 135404 110329 100299 65195


D 774342 532668 488279 473483 443890 414298 340316 266334 202217 128235 73982

E 532668 488279 473483 458687 434026 404433 335384 261402 197285 123303 73982

F 488279 473483 458687 434026 414298 389637 320587 251538 187420 118371 69050

G 473483 458687 434026 419230 389637 355112 300859 241674 182488 113439 64117

H 384705 374841 360044 345248 325520 300859 261402 217013 162760 108507 59185

I 330452 320587 315655 300859 286063 271266 226877 197285 152896 103574 59185

J 256470 251538 246606 236742 226877 217013 187420 162760 128235 93710 54253

K 221945 217013 212081 202217 192352 187420 167692 143031 113439 83846 54253

L 187420 182488 177556 172624 157828 152896 138099 118371 98642 73982 49321

M 157828 152896 147963 143031 133167 128235 118371 108507 83846 69050 44389

N 128235 123303 118371 113439 108507 103574 98642 98642 69050 64117 41011


D 2055279 1660981 1458903 1197680 1025175 734380 502730 404156 345011 182363 103503

E 1601836 1473689 1355400 1128678 961102 709737 478086 384441 320367 172505 98575

F 1394829 1311041 1197680 1039961 887171 660449 458371 369654 305581 162648 93646

G 1232181 1148393 1084320 906886 793525 586518 448514 349940 290795 152790 88717

H 1020246 970959 882242 759024 650592 492873 414013 320367 266151 142933 88717

I 778739 734380 694950 635806 522445 433728 359797 285866 241508 133076 83788

J 556946 532302 507659 473158 428799 345011 300652 231650 192220 123218 78860

K 448514 433728 414013 399227 354868 295724 261222 207006 172505 113361 73931

L 325296 310510 295724 271080 256294 211935 192220 167577 142933 103503 64073

M 241508 231650 216864 202078 192220 162648 147862 133076 118289 98575 59145

N 157719 152790 138004 133076 131123 120654 120631 115408 99671 93646 54216


D 1306214 949497 876055 797367 744909 603271 440650 330488 257046 152129 94425

E 949497 876055 797367 744909 671467 577042 430159 319996 251800 146883 89179

F 876055 797367 744909 671467 619009 550813 419667 309504 241309 141638 89179

G 776384 723926 671467 619009 592780 498355 403930 293767 230817 136392 83933

H 624255 571796 519338 493109 466880 419667 346225 262292 209834 131146 78688

I 493109 466880 440650 414421 388192 367209 314750 246554 194096 125900 78688

J 377700 361963 346225 330488 309504 293767 262292 199342 157375 115408 73442

K 319996 304259 293767 278029 272784 262292 241309 178359 141638 110163 68196

L 230817 220325 209834 194096 188850 183604 173113 146883 120654 99671 62950

M 188850 178359 167867 162621 157375 157375 146883 131146 110163 94425 57704

N 146883 136392 136399 131146 131123 120654 120631 115408 99671 89179 52458


D 4173807 3180044 2921665 2613598 2146529 1296861 839730 546570 407443 233534 134158

E 3125387 2911727 2683162 2414846 2002434 1252142 814886 516757 382599 223597 124220

F 2658318 2484409 2335344 2136592 1734117 1137859 770167 496882 367693 213659 114283

G 2176342 1987527 1863307 1689398 1431020 1018608 735385 477007 347817 203722 109314

H 1888151 1739086 1565178 1431020 1232267 884450 636009 432287 327942 193784 104345

I 1286924 1192516 1117984 1018608 934138 695635 536632 382599 303098 183846 95284

J 929169 884450 834761 775136 720479 576383 481975 337880 273285 168940 89439

K 740354 705572 670790 621102 596258 472038 402474 313036 248441 154033 84470

L 521726 496882 472038 457131 447194 357755 298129 268316 218628 139127 79501

M 437256 422350 397505 377630 357755 298129 258379 208690 163971 124220 74532

N 352786 347817 322973 298129 268316 238503 218628 149065 110329 109314 69563

Prices are in Rupees Per Carat Powered by www.idexonline.c

This price list reflects b enchmark retail prices for polished diamonds. Diamonds may, and should, sell at discounts compared to this list.For more education on prices and discounts please visit ww w.idexonline.com. Copyright 2009 by IDEX Online S. A. All rights reserve d.


THE DIaMoND RETaIL BENcHMaRKDIaMoND RETaIL BENcHMaRK FoR PoLISHED DIaMoNDS



http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 12/2216 Magazine – india Retail | nO 01: COVeR StORY

A feature of thisyear’s Diwalijewellery salesseason has beenthe rapid growthof consumer

assurance initiativesfor diamonds allaround the country.And while saleshave sparkled,the call for greaterstandardization

in pricing andassurance schemeslike buy-backs hasnever before beenas loud. A report onthe Indian jewelleryretail industry’sperception of theneed and what’sbeing done about it.

Can You Assure Your Customer

About TheDiamond?

She’s SureAbout the Gold

By Vinod Kuriyan



JOYalukkaS: OffeRing 100% diaMOnd buY-baCkS

Magazine – india Retail | nO 01: COVeR StORY

I ndian jewellery retailers have for centuries maintainedthe value of the plain gold jewellery they have soldbuy instituting buy-back programs. Diamonds andcoloured gemstones, however, have long languished

in a confusion of ad hoc schemes inst ituted by individualretailers according to their own individual norms. This state

of affairs lasted so long only because diamond jewellery constituted just a tiny fraction of the total market.

Not any more. Ever since De Beers entered the Indianconsuming market with a slew of diamond brands andan aggressive umbrella campaign, all around the country,demand for diamonds has grown exponentially. Diamondjewellery is today the fastest growing segment in the market. While there are no official figures, Mehul Choksi, chairmanand managing director of the Gitanjali group, that sel ls araft of branded diamond jewellery all over India, includingGili, one of India’s first diamonds jewellery brands, as wellas Nakshatra, Asmi and Sangini, erstwhile De Beers brandsthat whetted the Indian consumer’s appetite for diamonds,estimates the size of the Indian diamond jewellery marketat a whopping Rs.25,000- to Rs.30,000 crore ($6-$7 bil lion).“The way I calculate it,” he says, “is that the Indian retaildiamond jewellery market consumes roughly Rs.13,312 crore worth of diamonds ($3 billion), another 4,437 crore ($1bill ion) in gold. Factor in a profit margin of approximately 50 percent and you get my estimated total.”

Whatever the actual figure, there is no getting away from

the fact that domestic demand for diamonds has never beenhigher. Along with this demand, the need for consumerassurance too has grown equally fast, spilling over fromthe metros and Tier-I cities and pushing decisively intoTier-II and smaller towns.

These consumer initiatives broadly hinge on two planks –stone certification and buy-back programs. Together, theseprograms help maintain the value of diamond jewellery and are catalyzing the move to viewing larger or betterquality diamonds as storehouse of value, much the same way gold has been viewed in the country for millennia.But an important difference between the plain goldand diamond jewellery markets is that whereas the firstcategory is usually held long term and only traded in duringexigencies or occasions like family weddings to generateeither cash or new bridal jewellery, diamond jewellery buy-backs, especially at the lower, mass-market end ,arealso driven by fashion. Consumers are ready to trade intheir diamond jewellery for newer styles and designs.Thus consumers of even the mass-market jewellery inthe lower price ranges have a strong requirement for

assurance programs that guarantee them a holding valuefor the product they buy.

K. Srinivasan of Emerald Jewel Industry India Pvt. Ltd.,a manufacturer who supplies retailers, offers certifieddiamonds and buy-back schemes for them as a productand service guarantee, however cautions that in his view,diamonds are sti ll a long way from gaining the storehouse-of-value perception that gold enjoys in the country. “Thereis nothing to beat gold as an investment option for thegeneral consumer,” he notes, adding, “diamonds are still far

away as an investment option.” But he nonetheless offersassurance programs for all sizes of diamonds and affirmsthat these initiatives help maintain their value. As he putsit, “Transparency in the grading systems and in valuecertification will help boost consumer confidence and themove to buying diamonds as an investment tool.”

The Joyalukkas group, another big operator in the southernmarket, has also embraced consumer assurance schemesfor diamonds in a big way. According to Suresh V.N.,the group’s diamond manager, notes, “ We at Joyalukkashave very good sales in diamonds. All our diamonds areIGI certified and we offer our customers a 100 percentbuy-back guarantee.

But it isn’t only the larger and better stones that are now being offered with assurance programs. Indeed, even mass-market diamond jewellery brands are offering consumersquality assurance. The challenge to consumer assurance

with diamonds, notes Gitanjali’s Choksi, is that there isn’ta single price to a diamond – the fact that for a stoneof a given size, there could be any number of variations


http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 15/22Magazine – india Retail | nO 01: COVeR StORY

measure of standardisation? “The geographic variety of theIndian market,” says Kanwaljit Singh of Singh Diamondin Mumbai, “leads to a great variation in the mark-up ondiamonds at the retail level. In the northern markets, they

love diamonds, but they want the biggest bang for theirbuck. So the diamonds are the more inexpensive kind -lowerclarities and colours. But the overall cost of the piece is alsokept down by using lower karatage for the gold and so thediamonds still constitute up to 60 percent of the componentcost of the jewellery. When you factor in the retail mark-up onthe whole piece after adding making charges, obviously, thediamond values are marked up by a much higher percentagethan in the southern markets, where they take only thehighest quality – and thus far more expensive diamonds. A comparison of two similar pieces with a exactly the same

carat weight in diamonds would show a five-fold increase inthe cost of the diamonds for the southern market. Naturally, when you factor in the total mark-up, the appreciation inthe price of the diamonds is going to be much less. So youreally can’t say that the diamonds are overvalued in onemarket and undervalued in the other. It’s in the nature of the consuming pattern in each market.”

Still, the consuming market could be made to understandregional differences in prices as long as consumers areconfident of the quality of diamonds they buy. This is

where the Indian market runs into extremely uncertainterritory. Bachhraj Bamalwa of Nemichand Bamalwa inKolkata, the incoming president of the All India Gems& Jewellery Trade Federation (GJF), in his inauguraladdress at the GJF’s annual general meeting earlier this

year, highlighted the need for the jewellery retail industry to convey rock solid quality assurance to consumers whenhe asked the question, “Does the Indian market need aregulatory authority to maintain standards among diamondgrading laboratories?”

Bamalwa was referring to the fact that in many areas,there are small, one-room shops that call themselves“grading laboratories” and offer certi ficates for as littleas Rs.50. Most of these “labs” have nothing more than asingle microscope and offer certificates that are severa lclarity- and colour grades higher than what a reputed

world-class laboratory would. These small shops, he

observed, posed a real threat to consumer confidence, which is why he was even willing to consider governmentregulation of laboratories. Many retailers have seen thepointlessness of certificates from such “labs” and have,like Mohandas in Kochi, opted to provide their owncertification and stand behind their own productsinstead.

But there is still a strong need for third-party certification. Which is why Bamalwa posed the question to the GJF’sgeneral body of whether they should even consider agovernment initiative in the matter. The problem withthis idea, though, is that government infrastructure hasbeen woefully inadequate even with the primary need forproviding gold hallmarking services around the country.Most of GJF membership present felt that asking thegovernment to also look after diamond certification wassomething of a hopeless cause from the very outset.

While agreeing with this Bamalwa noted that this meant thatretail industry had to collectively do something to providethis much-needed assurance to the Indian consumer. Mostof the retail industry agrees that collective action needs to

be taken on a combination of initiatives including third-party certification, good buy-back programs and above all,standardized pricing for diamonds.

Much of what consumers perceive as value, depends ontheir confidence that the perceived va lue of the productis uniform throughout the marketplace and that this

value can be unlocked at any time through a standardizedmechanism. Bui lding up this confidence is key to enablingdiamonds compete successfully with the wide range of luxury products that now aggressively vie for a share of the consumer’s wallet.

As Gitanjali’s Choksi sums it up, “India is a very big country and the industry must come together to educate theconsumer on diamonds. All the retailers, manufacturersand associations should come together to do this on amassive scale. In our business, providing an investmentguarantee of the product is as important as selling it forits beauty. There must be trust and confidence created inthe consumer’s mind ■

VnM Jewel CRaftS


http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 16/22IDEX MagazInE – InDIa REtaIl | nO 01: REtaIl Et CEtERa

RetailE t C e t e r a

True Love Never DiesValen ine’s Day lies jus over he Holiday Humpand hese pieces make a hear of s one burnred wi h desire. true love never ends, bu loversgive he gif ha las s forever … jewelry. Reds andpinks, hear s and arrows – hese las ing loveliesare sure o “be mine.”

JEwElRy by bOb EXpORtfOR gOlD EXpREssIOns

Birds of a feather stick togetherRemind your lover o the season o love andspring with these pieces rom B b exp

g l exp . Pouring down likedroplets o rain, these eathered pieces focktogether with furries o yellow, white and pinkgold in the Tropical Fantasy collection.


http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 17/2224 IDEX MagazInE – InDIa REtaIl | nO 01: REtaIl Et CEtE

for the faint of heartesss nza for gold expr ssions lets contrastingenergies unite in yellow and black gold creatingunique and passionate forms for those whose

romantic preference is less frilly and more edgy.The Making Love collection uses gold and hermatite

charms to capture the eye and the heart.

i Love goLd!Naturally, who doesn’t? Israelis designer, d ps m tenderly hand-cra ts 18 karat into romanticnatural elements that bring a calming and sensual

eel to each piece. Why not think out o theromance box and count the years o your loveusing the metaphor o the rings on a tree?

MetaLLic L’aMourIn the My Way 2 collection, Italian designerg l p g l exp solidly expresses the notes o love with bold heartsshining bright with metallic sheen. Striking andpassionate, the collection’s depth has avant-gardecharacteristics.

JEwElRy by EsssEnzafOR gOlD EXpREssIOns

JEwElRy by gOlDspIRItfOR gOlD EXpREssIOns

JEwElRy by DapHna sIMOn


http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 18/22IDEX MagazInE – InDIa REtaIl | nO 01: REtaIl Et CEtERa

tickLed Pink

Nothing says love like pink sapphiresand amethyst jewelry. al c ’ design

sparkles in rose and purple rings, earrings andpendants. There are even surprises underneatheach piece with ornaments inside the rings o stars, moons and hearts.

ring in the seasons ll gives more heart than ever this season

with an array o heart rings or every taste. Forthe ambiguous amore, a sterling silver and rosequartz ring etched with romantic design onthe band. For the bold, a 14 karat white goldheart shaped amethyst and diamond ring willignite the heart in purple passion.

JEwElRy by paCôMa

JEwElRy by stullER

JEwElRy by al CORO



Global PolishedDiamond Prices

26 IDEX MagazInE – InDIa REtaIl | nO 01: pOlIsH

G lobal polished diamondprices slipped during thefinal week of October,

after holding relatively steady duringthe early part of the month. In fact,prices declined even further due tothe weakening of the dollar.

The IDEX Online Polished DiamondPrice Index averaged 117.8 forOctober, ending the month at 117.2,and remained near that level in theearly days of November.

The IDEX Online Global PolishedPrice Index decreased a modest0.2 percent from September and

increased a strong 8.4 percent overthe average for October 2009.

Uncertain demand for polisheddiamonds, especially ahead of theall-important holiday season in theU.S. market, appeared to have causedretailers to cancel backup ordersfor diamond jewelry. As a result,diamond suppliers with excessgoods were forced to reduce prices

in an effort to move inventory. Weak U.S. Dollar alSo

HUrtS DiamonD ValUeS

There was also more disturbing news.Globally, diamonds are traded in U.S.dollars. Since the beginning of the year, the U.S. dollar has lost at least 5percent of its value against a basket of diamond currencies. As a result, real

prices of diamonds began to fall whenthe U.S. dollar’s decline commenced.

On a constant currency basis, IDEXOnline Research estimates thatglobal polished diamond pricessince September have fallen by atleast 6 percent, if not more, fromlevels earlier this year, on a constantcurrency basis.

riSing golD Price HUrtS

real DiamonD PriceS

The U.S. dollar has weakenedsubstantially against the price of gold. Since January, the price of gold has risen by 24 percent from

$1,099 to $1,360, although it wasslightly higher in mid-October.Consequently, the value of the U.S.dollar has fallen a substantial 24percent when compared to theglobal currency of gold.

Weak DiamonD PriceS:

iDeX online iSSUeS early

Warning

The IDEX Online Global PolishedPrice Index, which is based onreal-time trading data, showsthat polished diamond pricesare softening. In contrast, somepolished diamond price informationpublished by other services suggeststhat prices are “stable.”

Why this dichotomy? IDEX OnlineResearch reports diamond pricesin real time posted by diamondsuppliers. There are no “marketadjustments.” IDEX Online neither

owns nor trades diamonds.

DemanD in a FeW marketS

remainS relatiVely Stable

Globally, the uncertain economy hashad a negative impact on demand

Prices Weaken in Late OctoberBy Ken Gassman

so rce: IDEX O i e Re e rch

gRapH 1

Daily IDEX Online Polished Price Index

a 2010

119

118

117

116

115212019181716151413 242322 28 29 302625 2710 11 1298765421 3 31


http://slidepdf.com/reader/full/idex-india-dec-2010-no-hindi 20/22IDEX MagazInE – InDIa REtaIl | nO 01: pOlIsHED

for polished diamonds and diamondjewelry. Not only has the economicrecovery been characterized by spikes and dips in demand, butthe economy is taking far longerto rebound than in prior recovery cycles. As a result, diamantairesare getting mixed signals fromthe market, with no firm trend orpattern emerging.

While demand for diamonds anddiamond jewelry remains stable intwo emerging markets – China andIndia – neither of these marketshas a significant impact on globalpolished diamond demand or prices.Together, these two markets account

for an estimated 10 percent or lessof total global demand (by value)of polished diamonds. In contrast,the U.S. market consumes roughly 45 percent, by value, of the world’spolished diamonds and diamondjewelry.

SHort-term ForecaSt

Uncertain

The IDEX Online Research survey of retail jewelers shows that theaverage ticket for an independentspecialty jeweler dropped by 9-10percent during the recession, and isshowing no recovery. The only goodnews is that the number of salestransactions is on the upswing.

Forecasts for near-term diamonddemand are less rosy. We areprojecting that diamond jewelry sales could be down by as muchas 5 percent in the U.S. duringthe November-December holiday

season, with unit sales down asmuch as 15 percent.

Instead of diamonds and diamondjewelry, consumers have focusedtheir spending on less expensivesilver jewelry and lower-karatagegold jewelry. Popular priced fashionjewelry – mixed metals and a variety of colored gemstones – seem toappeal to today’s jewelry shopper.

Until demand for diamond jewelry solidifies at the retail level in the U.S.market, polished diamond pricesare expected to trade in a narrow range, with little support. Clearly,there is not enough demand to pushprices higher. Unfortunately, the riskremains high for downside pricemovement. ■

gRapH 2U.S. Dollar to Diamond Currencies – 2010

source: OanDa

+4.0%

+2.0%

+0.0%

(2.0%)

(4.0%)

(6.0%)

(8.0%)

(10.0%)

Ru eeEuro sa R dC di $

(4.7%)

(6.3%)

(3.1%)

(8.5%)

3.4%

au tr li $

tHe iDeX online

DiamonD Price inDeX

The IDEX Online Diamond Price Indexis a real-time index derived from actualasking prices in the global diamondindustry. The IDEX Online DiamondPrice Index objectively reflects pricetrends as they happen. The DiamondIndex and Diamond Drivers wereformulated following comprehensiveresearch and analysis of the IDEXinventory database, aggregated since2001. Research and development wereconducted in cooperation with Dr. Avi Wohl, senior lecturer of Finance atthe Faculty of Management, Tel Aviv University, Israel.

Further information is available fromIDEX Research. The e-mail address [email protected].

source: IDEX O li e Re e rch b Mo h

2008 2009 2010

gRapH 3IDEX Online Polished Diamond Price Index

24 Mo h135

130

125

120

115

110

105

100a s 0n D J M a M J J a s O n D J ff M a M J J

pe k a 2008 = 128.9

Oc o er 2010 = 117.8

aver e a ri –novem er 2009108+



People have revered diamond as a precious productof nature for thousands of years, especially inIndia where the tradition of diamond trading and wearing dates back some 3000 years.

In the last half century, scientists have discovered ways toalter the appearance of natural diamond: namely to improveclarity and improve or change color. While t reatments canmake difficult-to-sell diamonds more attractive, they dopresent identification challenges to the industry if soldundisclosed.

Detection and disclosure is the key. Diamond treatments arelegitimate and can make some diamonds more marketable,but the need for positive, ethical disclosure is essential toprotect the trade and consumers.

Treatments For ColorScientists have experimented with many ways to changeand modify diamond color.

IrradiationSir William Crookes was the first to change diamond colorby irradiation. He buried diamonds with radium salts forone year in 1904, which turned them green. Unfortunately,it also made them highly radioactive.

Development of nuclear reactors, particle acceleratingmachines, made treatment of stones easier. This causeddamaged to the crystal lattice of diamond, altering lightabsorption, therefore the visible color. This treatmentresulted in only shallow penetration of atomic particlesinto the diamond, causing distinct color zones.

Researchers developed the linear accelerator in the 1900s.This also accelerates atomic particles, but along a straightpath rather than a circular one.

DV

Diam ndTreatmentsToday, penetration with high-energy electrons in a linearaccelerator is one of two frequently used ir radiation techniques.Depending on the material and treatment conditions, thisprocess usually produces blue or blue-green colors.

The other technique involves bombardment with neutrons,usually in a nuclear reactor. Diamonds treated this way usually become green, blue-green, or dark green.

Both of these modern processes produce uniform color without zoning because the electrons and neutrons penetrate very deeply.

Color-modifying irradiation treatment always comes aftera diamond is cut and polished.

Irradiated colors are sensitive to heat. Technicians use coldrunning water to prevent color changes during the irradiationprocess, which generates a lot of heat.

After the gem is set, the heat from jewelry repairs , recutting,or repolishing might also change its color.

A controlled heating and cooling process called annealing,is another way to change diamond color.

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