In an attempt to bring transparency in diamond pricing, Mumbai-based R S Diamonds has introduced a first-of-its-kind online mechanism for individuals to assess the approximate price of processed diamond pieces.
Currently, the price of diamond is determined by processors, depending on the efforts and expenses they put in. Hence, the product price, be it a diamond-studded ornament or a solitaire, differs from jeweller to jeweller for the same quality and size. Taking advantage of this opaque business model and lack of comparable benchmarks, jewellers fix the price and consumers have no option but to pay.
"With the introduction of online assessment of diamond pieces, a consumer can evaluate the price on his own and claim the same amount from jewellers at the time of sale. With a marginal error of omission and neglect, a consumer can fetch the price displayed on the website," said Jignesh Mehta, managing director of R S Diamonds.
The opaque pricing mechanism, had failed to attract investment in diamond studded ornaments or solitaires. Today, diamond are bought purely for consumption purposes. With hallmarking and re-sale guarantee offered by branded jewellers, diamond are gradually catching investors' fancy.
Of late, investors have started widening their investment portfolio by adding a piece of diamond to the kitty.
According to Mehul Choksi, managing director of India's leading branded jewellery manufacturer and retailer, Gitanjali Gems, diamonds have become investors' preferred choice today due to their consistency in double-digit returns year after year. Revised on the first of every month for solitaires between 0.10 and three carats, the prices give an indication of the direction in which the diamond industry is heading.
"This is particularly beneficial for investors who buy large size stones for re-selling the same on price appreciation, which would boost investors' confidence, going forward," Mehta added.
The company is popularly known as the producer of India's first solitaire brand – Divine Solitaire – which guarantees complete transparency and also assures customers get true value for money.
R S Diamonds procures roughs at market-driven prices through participation in overseas auctions. Currently, benchmark prices are available only to registered members from a couple of global providers. But, the price displayed on the website differs from the one offered by local jewellers.
The company has also introduced a diamond index replicating the average price of all types of precious stones currently in circulation in India.