Indian Buyers Head For Diamonds and Platinum, Says Report

(IDEX Online News) – Higher prices for gold jewelry are persuading Indian women to change their buying preferences to diamond jewelry and other precious metals such as platinum, according to a survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) conducted ahead of the Diwali festival that started today (Sunday).  

ASSOCHAM surveyed around 350 jewelry makers around the country in preparing the report: Diamonds and platinum shines as gold loses sheen in urban cities. Jewelers in major cities have been creating different strategies in a bid to sell jewelry die to volatile market conditions, the report found.

"With gold prices rising, white gold, diamonds or platinum is the new trend among buyers. There is an increasing focus for platinum jewelry in this festive seasons,” said one jeweler surveyed.

The survey reveals that nearly 76 percent of jewelers are focusing on platinum-based diamond jewelry over the traditional gold and silver jewelry in a move aimed at taking advantage of changing buying preferences.

The survey shows that there is rising interest among consumers for platinum, diamond jewelry due to the price fluctuations relating to gold and silver.

The share of platinum and diamond jewelry in overall jewelry sales has increased significantly over the past year and could account for about one-third of total jewelry sales in the 2015, according to the survey.

Demand for diamond jewelry has grown by more than 25 percent this year over 2012, with growth in sales of high-end diamond jewelry also strong, the majority of diamond jewelry makers reported.

“Indian investors always had a fascination towards precious metals and stones owing to their hedging ability against rising inflation and economic uncertainties. While investing in gold and silver has been going on for years, another investment avenue that is blooming for past few years is platinum, diamond and other investment”, said an ASSOCHAM official.