Kolkata: The West Asia conflict has prompted India’s diamond exporters to step up purchase of rough stones from Antwerp and African suppliers for cutting and polishing at home, as the Dubai trade corridor remains disrupted.
Also, demand for rare five-carat white and coloured diamonds is rising, as investors seek alternatives to volatile equities and bullion.
“Investors are seeing this as a safe tool for investments when equity markets have become choppy, and bullion is showing volatility. Prices of these diamonds will appreciate as they are becoming rare,” said Darshit Hirani, cofounder of P Hirani Exports.
Dubai, a major global hub for polished and rough diamonds and bullion, has suspended numerous cargo and passenger flights amid the ongoing Iran war, affecting trade flows and shipments of both finished products and essential raw materials.
India processes nine out of 10 polished diamonds available in the global markets.
