Monday, February, 26, 2018
  • Nation
  • World
  • States
  • Cities
  • Business
  • Sport
  • Entertainment
  • Galleries
  • Videos
  • Life Style
  • Specials
  • Opinions
  • All Sections  
    States Tamil Nadu Kerala Karnataka Andhra Pradesh Telangana Odisha
    Cities Chennai DelhiBengaluru Hyderabad Kochi Thiruvananthapuram
    Nation World Business Sport Cricket Football Tennis Other Education Social News
    Entertainment English Hindi Kannada Malayalam Tamil Telugu Review Galleries Videos
    Auto Life style Tech Health Travel Food Books Spirituality
    Opinions Editorials Ask Prabhu Columns Prabhu Chawla T J S George S Gurumurthy Ravi Shankar Shankkar Aiyar Shampa Dhar-Kamath Karamatullah K Ghori
    Today's Paper Edex Indulge Event Xpress Magazine The Sunday Standard E-paper
Home Business

How safe it is to invest in diamonds and precious stones

By Anuradha Shukla  |  Express News Service  |   Published: 26th February 2018 02:33 AM  |  

Last Updated: 26th February 2018 06:30 AM  |   A+A A-   |  

0

Share Via Email

Diamonds on display (FIle | Reuters)

THE star-studded smart advertising made us believe that ‘Diamonds are Forever”. No one is going to believe the tagline for De Beers, at least for next few months, as the Punjab national bank fraud had dented the value of diamond bands owned by Nirav Modi and Mehul Choksi, the two poster boys of the gems & jewellery industry. The media reports that these two brands were using diamonds of inferior quality triggered a panic reaction among people, who have owned the jewellery and they flocked to the experts for reassess the real worth of their jewellery. “After the news, customers are making a beeline for getting the real worth of their diamond jewellery. We got at least 20 people who have bought these brands. Also we have seen a dip in fresh demand,” said a jeweller of the South Extension market in South Delhi.

Diamond: Not a Gem of Investment

Remember the 1953, Marilyn Monroe song “Diamonds Are a Girl’s Best Friend”. While this became the global tagline for selling diamond as expression of love, it never became best friend of investors. While diamond retained its snob value among the affluent class, it remained a hard sell for investors who preferred gold over diamond and precious stones. Experts attribute the lack of investors’ appetite in diamond to three key factors; a lack of transparency in the market, a lack of liquidity oversupply and demand and finally a lack of standardisation with the value of stones.

However, in last 10 years there was a spike in diamonds sales in India by 10 per cent, driven by the middle class and sensing the market, diamond brands started advocating about the investment benefits of diamonds. However, reports of using inferior quality diamond by some of the top brands owned by Mehul Choksi and Nirav Modi have seriously dented both investment as well as the snob value. “The PNB scam has seriously dented the diamond purchase among common citizens, who have turned cautious.What is worse people have lost faith in diamond brands. I think this trend will continue for some time,” said another diamond jeweller in Noida.

How to ascertain the value of diamonds

So what is the way to ascertain the value of your investment in diamonds and precious stones? Nitin Khandelwal, chairman, Gems and Jewellery Trade Federation, says, “Diamonds are valued on 4Cs - cut, clarity, colour and carat. It becomes difficult to compare two diamonds the same way one can compare two gold products.” According to him, to secure one’s purchase, it is important to ask for the certificate that certifies the diamond being bought.

“While there are lots of labs which certify diamonds, the best ones include the likes of Gemological Institute of America, International Gemological Institute and Hindustan Gemological Laboratories. But apart from the 4Cs, one should definitely check the fifth C — credibility of the brand,” Khandelwal suggested.

VALUING THE PRECIOUS STONE

It is important to ask the seller for certificates that certify diamond.The best labs that certify diamonds are Gemological Institute of America, International Gemological Institute and Hindustan Gemological
Laboratories, among others

Stay up to date on all the latest Business news with The New Indian Express App. Download now
TAGS
Infrastructure Investment Trusts

O
P
E
N

More from this section
Bharti Airtel. (File photo | Reuters)

Airtel joins global consortium for hi-speed, in-flight data connectivity

Coal India will close down high-risk mines that are beyond mitigation. (File photo | AP)

Power plants face coal shortage, may affect energy supply

Global cues, interest sensitive stocks lift Indian equity indices 

Latest

Calcutta High Court lawyers' ceasework extended till March 5 

Rs 38 lakh cash seized in Meghalaya a day before polls

Mumbai: Fire breaks out in chawl in Thane

Ravichandran Ashwin to lead Kings XI Punjab in IPL 2018

Salman Khan casteist remarks case: Rajasthan HC stays investigation

Vietnam cops seize USD 2.5 million heroin in China border drug bust

Fire breaks out in-house in Kolkata's Baranagar, three injured 

Madras HC rejects PIL against government teachers' strike 

Videos
Sridevi. (File | AFP)
A look at late Sridevi Kapoor
‘Dark Day’ for Bollywood: Amar Singh breaks down while remembering Sridevi
arrow
Gallery
People holding pictures of victims of the airstrikes and shelling by Syrian government forces in Ghouta, a suburb of Damascus, Syria, gather during a rally outside the Russian Consulate in Istanbul. | AP
Stop bombing Ghouta: People throng outside Russian Consulate in Istanbul to protest against Syrian airstrikes
Two Syrian kids who were wounded during airstrikes and shelling by Syrian government forces, sit at a makeshift hospital, in Ghouta, suburb of Damascus, Syria. | AP
Syria toll touches 500 as eastern Ghouta bombing continues, 130 children amongst dead
arrow

Trending

FOLLOW US

Copyright - newindianexpress.com 2018

Dinamani | Kannada Prabha | Samakalika Malayalam | Malayalam Vaarika | Indulgexpress | Edex Live | Cinema Express | Event Xpress

Contact Us | About Us | Careers | Privacy Policy | Search | Terms of Use | Advertise With Us

Home | Nation | World | Cities | Business | Columns | Entertainment | Sport | Magazine | The Sunday Standard