Due to the skyrocketing price of gold, many people in India are opting to buy diamonds. However according to the Economic Times of India, this has kept interest in gold alive, to a certain extent.
According to Pankaj Parekh, regional chairman of the Gem and Jewellery Exports Promotion Council “Gradually, diamond sales in India are increasing due to volatile gold prices,”
“Around 25 percent of people who purchase gold for social gifting have drifted to diamond,”
Diamonds are now set on 18-carat gold instead of 22-carat gold. The rise in diamond sales are attributed to the availability of certified stones in the market. The diamond sales has risen up to 30% compared to last year.
Many jewelers are also expecting an increase in the sales of gold and jewellery during the festive season and marriage season.
According to the data of the World Gold Council, demand for gold in India was down by 83% during the first quarter, compared to the same period last year (18 tonnes Vs 107 tonnes).
Gold reached an all time high of 1,070.80 dollar an ounce on the 14th but prices are now on a declining trend.
India is the worlds largest gold market.