Prices of +11 diamonds crash after stock from TN flood Mumbai market
TNN | Feb 28, 2019, 04:00 IST
Surat: Prices of the +11 diamond size manufactured by the small and medium diamantaires in the Surat — world’s largest diamond cutting and polishing centre — has crashed by nearly 30% in the last two days after the diamond brokers in Mumbai were flooded with the fresh stocks from few brokers in Tamil Nadu.
Market sources alleged that more than two lakh carats of +11 diamonds was purchased by late former chief minister of Tamil Nadu, J Jayalalitha from Mumbai’s diamond market during the demonetisation. The huge purchase by Tamil Nadu’s heavy weight politician was made by select diamond brokers and companies in Mumbai in 2016, immediately after demonetisation was announced by the Centre.
According to the rumours, after the death of Jayalalitha, few of her close confidantes have flooded Mumbai’s diamond market with over one lakh carat of +11 diamond quality, bringing the prices down by almost 30% in the last few days.
A diamond broker from Mumbai who is privy to the development said, “The diamond market is very cautious after the Brexit and economic situations prevailing in US and China. The prices of polished diamonds have crashed and now the market is flooded with +11 diamond stock from Tamil Nadu, further decreasing the prices by almost 30%.”
He added, “The +11 diamond stocks were purchased at an X value in 2016, but now the brokers are selling it of at lower price. This has led to the situation where the diamantaires are worried about the price war and the possible impact on the market in the coming days.”
Meghji Bhalala, a diamond broker in Surat’s Mahidhapura diamond market said, “+11 diamond size is the most popular diamond in the market. Surat has the specialisation of manufacturing this type of diamonds, mostly used in the jewellery articles. If such a huge quantity is flooded in the market for sale, it is certainly going to crash the prices.”
President of Surat Diamond Association (SDA), Babu Gujarati said, “Wealthy people in the country have used diamonds during the demonetisation to turn their black income into long term investment. There have been instance where the diamond brokers have sold high quality diamonds to many politicians during the demonetisation. This is the classic example where more than 2 lakh carat of diamond was sold to the top politician from Tamil Nadu and now they are up for sale in Mumbai, crashing the prices in the local market.”
Market sources alleged that more than two lakh carats of +11 diamonds was purchased by late former chief minister of Tamil Nadu, J Jayalalitha from Mumbai’s diamond market during the demonetisation. The huge purchase by Tamil Nadu’s heavy weight politician was made by select diamond brokers and companies in Mumbai in 2016, immediately after demonetisation was announced by the Centre.
According to the rumours, after the death of Jayalalitha, few of her close confidantes have flooded Mumbai’s diamond market with over one lakh carat of +11 diamond quality, bringing the prices down by almost 30% in the last few days.
A diamond broker from Mumbai who is privy to the development said, “The diamond market is very cautious after the Brexit and economic situations prevailing in US and China. The prices of polished diamonds have crashed and now the market is flooded with +11 diamond stock from Tamil Nadu, further decreasing the prices by almost 30%.”
He added, “The +11 diamond stocks were purchased at an X value in 2016, but now the brokers are selling it of at lower price. This has led to the situation where the diamantaires are worried about the price war and the possible impact on the market in the coming days.”
Meghji Bhalala, a diamond broker in Surat’s Mahidhapura diamond market said, “+11 diamond size is the most popular diamond in the market. Surat has the specialisation of manufacturing this type of diamonds, mostly used in the jewellery articles. If such a huge quantity is flooded in the market for sale, it is certainly going to crash the prices.”
President of Surat Diamond Association (SDA), Babu Gujarati said, “Wealthy people in the country have used diamonds during the demonetisation to turn their black income into long term investment. There have been instance where the diamond brokers have sold high quality diamonds to many politicians during the demonetisation. This is the classic example where more than 2 lakh carat of diamond was sold to the top politician from Tamil Nadu and now they are up for sale in Mumbai, crashing the prices in the local market.”
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