Diamond glitters even as gold lose shine

Even as the gold prices continued to fall on Tuesday, the prices of diamonds are on a firm ground, said leading jewellers.

"There is no fall in diamond prices. Rather we have witnessed the changing consumer preference to invest in diamonds. The young generations of clients are purchasing diamonds both as an investment and to wear it as a style statement for diverse social occasions," Suraj Shantakumar, director, business strategy, Kirtilals told IANS.

He said customers are keen on buying diamond jewellery due to uncertain gold price.

"Both gold and diamond jewelllery are trending similarly. People tend to buy coins for investment but only jewellery fills the need for ornamentation and simultaneously provides a good long term investment and value too," Naresh Mehta, partner at Mehta Jewellery, told IANS.

According to Mehta, gold prices are not going to fall continuously though on Tuesday it touched Rs.2,360 (22 carat) from the previous day's level of Rs.2,378 per gram.

Though in the business of making gold jewellery, Mehta said they do not speculate in yellow metal prices so as to stock up when prices fall.

"We replenish out stocks as they sell at the same prices," he said.