Solitaire sheen: Sales of solitaire diamonds rise in post Covid-19 era

Due to weak demand in the Western markets and a resultant drop in prices, sales of solitaire diamonds of 1 carat and above have increased in the country after the Covid-19 pandemic, according to a report by The Economic Times (ET).

Industry executives told ET that among the wealthy aged 40-45 years, solitaire diamonds have become a favourite anniversary gifting option, whereas many in the age group of 25-30 years are buying solitaire diamond jewellery for weddings. South African-British De Beers and Indian chains such as Senco Gold & Diamonds and Malabar Gold & Diamonds see the demand for solitaire, or one-piece, diamonds in the country rising as much as 20 per cent compared with the pre-Covid-19 pandemic period.

Since the economic slowdown in developed markets has dented demand, diamond prices have decreased by about 35 per cent in the past year and a half. Demand is also rising for cluster diamond jewellery, whereas it is more pronounced for solitaire diamonds, which are costlier.

Amit Pratihari, vice-president at De Beers Forevermark, said that the company has seen high net-worth individuals buying solitaires in the post-Covid-19 period as they spent less on travelling and had money in hand. Also, the country's economy is growing when other countries are struggling with recessionary pressure. Sales of solitaire are expected to rise in the upcoming wedding season, he added.

The popular categories of solitaire cost between Rs 1.5 lakh and Rs 4.5 lakh, and the price depends on the size and quality of the diamond. Sources told ET that some categories of one-carat diamonds are now available at 2004 prices.

MP Ahammed, chairman of Malabar Gold & Diamonds, said that solitaire sales have increased over three years, with sales more than doubling between the financial year 2021-22 (FY21) and FY23. The most favourable price bracket falls under Rs 1.5 lakh, he added.