CAPSTONE PRESENTATION

ON
PRICE MOVEMENT IN GLOBAL
DIAMOND MARKET AND
DIAMOND DRIVERS

PRESENTED BY:-
ANIKET AGARWAL (11605951)
DILIP SINGH PAL (11605620)
 INTRODUCTION
Diamond is the most renowned and fictional
of all gemstones. Diamonds stand out in
several characteristics and functions. They
are the hardest metal on earth and famous for
it, the characteristics of diamond like
durability, attractiveness and less availability
or supply make them the most sought out of
all stones. There is no other gemstone as
popular and demanding in market due to
these special characteristics.
There are many gemstones other than diamonds
but they are colorless or vaguely colored which
makes them less attractive and desirable. The
topic to be discussed is price fluctuations of
diamond in the global diamond market. First
and foremost, the diamond market is explored
and found out to be heterogeneous that is made
of three significant market segments. Later the
process of movement of stones from mines to
global market is studied. And then the diamond
drivers and other determinants that impact the
prices of diamonds will be assessed.
PROCESSING OF DIAMONDS FROM THE
DIAMOND MINES TO MARKET

De Beers
Groups

CSO DPA DITRA PURTRA DICORP

Central Selling Organization,

Diamond Producers Association,
Diamond Trading Company,
Diamond Purchasing and Trading Company,
Diamond Corporation.
 RENOWNED DIAMONDS ACROSS GLOBE

 THE GREAT STAR OF AFRICA CARATS 530.20,

 CULLINAN PRECIOUS STONE,
 THE CENTENARY DIAMOND CARATS 273.85,
 THE REGENT CARATS 140.50,
 KOH-I-NOOR MOUNTAIN OF LIGHT CARATS 105.60

These are also known because of there exception to the

diamond market because they have no relation with pricing
and they don’t have any sort of drivers. They are valued on
the basis of the value it has earned for being the precious and
presence in single piece.
 LITERATURE REVIEW
1. Indian Diamond Industry Out of Recession
Asha, K., & Christopher, S. E. (2014). A Study on Buying
Behaviour of Customers towards Branded And Non-Branded Gold
Jewellery With Reference To Kanyakumari District. International
Journal of Management, 5(10), 105-114.

2.Entrepreneurial Strategic Innovation Model for Attaining

Premium Value for the Sri Lankan Gem and Jewelry Industry
Ekanayake, S., & Abeysinghe, D. (2010). ENTREPRENEURIAL
STRATEGIC INNOVATION MODEL FOR ATTAINING
PREMIUM VALUE FOR THE SRI LANKAN GEM AND
JEWELLERY INDUSTRY. Asian Academy of Management
Journal, 15(2).
3.Indian Gems and jewelry: A Sector Study
Kumar, N. (2012). Problems and prospects of Indian exports of
gems and jewellery

4. Indian Diamond Industry Stands above the Others

Kuriyan, V. (2010). Indian Diamond Industry Stands above the
Others. Published in Solitaire international, Meneck Davar
Publication, Mumbai, 28-38.

5. Italian and Indian Gold and Jewelry SMEs, Marketing

Practices in the USA: A Comparative Case Study
Simoni, C., Rabino, S., & Zanni, L. (2010). Italian and Indian gold
and jewelry SMEs, marketing practices in the USA: A relative
case study. Journal of Small Business and Enterprise
Development, 17(3), 403-417
6. The Mazzel Ritual: Culture, Customs and Crime in the
Diamond Trade
Siegel, D. (2009). The Mazzel Ritual: Culture, Customs and Crime
in the Diamond Trade. Springer Science & Business Media.

7. Gem and Jewelry Industry: Global and Indian Scenario

Mukherjee, I. (Ed.). (2008). Gems and Jewellery Industry: Global
and Indian Scenario. Icfai University Press.

8. The Rise to Prominence of the Modern Diamond Cutting

Industry in India
Sevdermish, M., Miciak, A. R., & Levinson, A. A. (1998). The rise
to prominence of the modern diamond cutting industry in
India. Gems & Gemology, 34(1), 4-23.
9. Panorama of Gems and Jewelry in Indian
Historical Setting
Shukla, M. S. (2000). Panorama Of Gems Jewellery
In Indian Historical Setting. Kala Prakashan.

10. Export Problems and Prospects of Indian

Diamond Industry
Varma, M. L. (1983). Export prospects and
problems of Indian diamond industry.

11. Export Promotion in India

Purushothaman, Nair
RESEARCH METHODOLOGY
RESEARCH TYPE AND GENERAL GOAL
• This research is completely based on secondary sources and forms,
• This research is applied and diverse in Nature,
• The proposed research is set up from Qualitative Point of view.

METHODS AND TECHNIQUES

• We have collected all data from secondary sources,
• We have visited some of the renowned store in our local market i.e,
• TANISHQ Jewelers.
• KALYAN Jewelers.
• GUJRANWALA Jewelers.
• We have taken data from certain websites (IDEX)
OBJECTIVE
• To find the trends of diamonds price
movements,
• To find trends of pricing based on
different diamond,
• To explore different international factors
which decide the diamond price in global
market.
 RESULT AND DISCUSSION
We have listed the major factors which affect diamond
price and then there are certain factors we take into
consideration when we determine the value of diamonds.

COLOUR

FOUR
CUT CLARITY
“C”

CARRAT
DIAMOND COLOR EXPLAINED
HOW IS DIAMOND COLOR ASSESSED?
WHAT IS FLUORESCENCE?
HOW DO COLORED DIAMONDS WORK?
WHAT IS DIAMOND CLARITY?
HOW IS DIAMOND CLARITY GRADED?
THE GIA DIAMOND CUT GRADING SYSTEM
ELEMENTS INFLUENCING PRICE
MOVEMENTS
LOCAL MARKET SURVEY
Clarity Grade Meaning Description

No internal or external flaws. Incredibly rare and

FL Flawless
valuable.

No internal flaws but some surface flaws. Still very

IF Internally Flawless
rare and valuable.

VVS1, Slight internal flaws that is difficult to see even with

Very Very Slightly Included
VVS2 10x magnification.

Slight internal flaws that is just barely visible with

VS1, VS2 Very Slightly Included 10x magnification. Flaws are typically not visible
with the naked eye.

Slight internal flaws that is visible with 10x

SI1, SI2 Slightly Included
magnification. Flaws may be visible to the naked eye.

Inclusions that are readily visible to the naked eye.

I1, I2, I3 Included Inclusions may affect transparency and brilliance.
Less desired.
Clarity Grade Price Per Carat % Drop in Price From Next Highest Grade

IF $8000 -

VVS1 $7100 12.6%

VVS2 $6500 9.2%

VS1 $6200 4.8%

VS2 $5500 12.7%

SI1 $4800 14.5%

SI2 $3700 29.7%

I1 $3200 15.6%

I2 $2400 33.3%
 
  Price Per Carat % Drop in Price From Next Highest Grade
Colour Grade

D $7250 -

E $6500 11.5%

F $6100 6.5%

G $5450 11.9%

H $5000 9%

I $4300 16.2%

J $3600 19.4%

K $3150 14.2%
CUTS
 LEVELS OF CERTIFICATION WITH THE CONSISTENCY
   GIA is known for being the best lab in the World.
TOP

   AGS- The are considered best for cut but when the measured in clarity context they are having
SECOND grading issues,
 HRD- This is also an well-known and recognized lab but when it comes to the grading of
colour they have a bit of issues involved,
 GCAL- Their results are highly regarded because they the most consistent with GIA

   IGI- They are new ones and considered as improving ones can expect 1 grade of inconsistency.
THIRD  PGS- They are good at grading but their market share and area of operation is very less.

   GSI- This is more popular amongst large chain jewelers, and comes below IGI because its
FOURTH grading is not so consistent when compared to others.

   EGL- They are not the Reliable lab for grading to be done at some points but they are also
FIFTH hated by many in the market.
 Cutting and Polishing Industry 2017

120

100

80

60

40

20

0
2013 2014 2015 2016 2017

Cutting and Polishing Industry 2017 India Cutting and Polishing Industry 2017 China Cutting and Polishing Industry 2017 Other
 Rough Diamond Production Grew

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Other Angola South Africa Drc Australia Botswana Canada Russia
180

160

140

120

100

80

60

40

20

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Polished Diamond market Price Index Rough Diamond Polished Diamond market Price Index Polished Diamond
 CONCLUSION & RECOMMENDATION

We would like to conclude by saying that

Diamond market have lot of price influencer and
drivers but the major ones are those that impact
the its price are “4 C’s” (Cut, clarity, carat and
colour) and diamond can be driven on the basis
of its demand and its supply. There have been
some companies who have been playing in the
market from a long period of time so they also
have a key influence over the market.
After the study, we would like share with you
that diamond market at one point of time was
centrally controlled by a renowned company “De
Beers” they had a direct influence over the
market as they are were the monopolistic players
of the market and they use the decided the prices
of the diamond at one point of time. But today it
is driven one the basis of demand and supply but
it does not mean that De Beers does not have any
role, they work as an advisor in the market and
they even today holds and upper hand in the
market despite of having different companies in
this market they still are looked ones.
We discovered that there is various organizations at
international level who have been working to verify
and certify that diamond which also has an indirect
influence over its price. This certification cannot be
achieved very easily they need to prove its originality
then only they can get certified so on this grounds it
involves investment which has an influence over the
diamond price. We would say that diamond should
have a separate market where they can have trading
and the market will only fixed its prices and this will
involve list of various diamond companies. This
market will operate like the equity market is operating.
This market can also create an interest in investor;
they will also participate in trading. In building up
of this process we can also establish a regulator who
will have an thorough control of market and look to
protect the interest of an investor. This will also
have an impact over the diamond buyer mind that
they not cheated when they are buying the diamond
because we have an proper market and regulatory
authority who is there to look over price and set the
accordingly. This will also enhance they demand for
the diamond and it will also allow the diamond
player to enter different geographical border for
expansion and other sales oriented goals.