Kolkata: India’s ultra rich are increasingly embracing pink, blue and yellow diamonds – far rarer than traditional white stones – not just as jewellery but as an investment, driving demand up 20-25% over the past year despite soaring prices.
Traders and jewellers say India has emerged as one of the fastest-growing markets for coloured diamonds since the pandemic, driven by a new generation of globally exposed, asset-conscious ultra high net-worth individuals (HNIs).
Coloured diamonds now command a steep premium: while white diamonds typically cost ₹1 lakh to ₹7 lakh a carat depending on cut and clarity, pink diamonds can fetch anywhere between ₹15 lakh and ₹5 crore a carat, and blue diamonds between ₹25 lakh and ₹5 crore.
“The demand is also driven by the fact that celebrities and businessmen across the globe are embracing coloured diamonds for weddings and other special occasions. Wealthy Indians want to be part of this global trend,” said Darshit Hirani, cofounder of P Hirani Exports, a Mumbai-based manufacturer of fancy colour diamonds and jewellery.
“An interesting trend we are seeing is that HNIs from tier II cities are showing interest in coloured diamonds and are buying yellow diamonds as their first purchase,” he added. Yellow stones are priced comparatively lower, between ₹5 lakh and ₹15 lakh a carat.
Price appreciation is also driving demand, with coloured diamonds increasingly seen as an alternative investment amid rising scarcity in the absence of new mines.
In rupee terms, prices of pink diamonds have risen tenfold over the past 20 years and blue diamonds by 6-7 times, while yellow diamonds have roughly doubled. Post-Covid Trend
Hirani, who has worked exclusively in coloured diamonds for over four decades, said larger stones of 1-2 carats are being bought by HNIs aged 45 and above, while smaller and mid-sized stones are attracting younger buyers from affluent families or those in higher salary brackets. Ishu Datwani, founder of Mumbai-based Anmol Jewellers, noted that post-Covid, consumers are willing to spend more on rarities.
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“Indians have become globetrotters…(exposed to) fine jewellery brands such as Chopard and Cartier. They now want us to create pieces that resonate with their evolved tastes,” he said. “We have seen a strong uptick in fancy yellow diamonds sourced in rough form from Australia, Russia and South Africa, and cut and polished in Surat.” Coloured diamonds have also emerged as star performers on the global auction circuit, where their rarity and investment potential have made them highly sought after, particularly in Asia.
Rare Luxury
A July report by the Natural Diamond Council (NDC) said the estimated wholesale value of fancy colour diamonds entering the market in 2024 exceeded $4.5 billion, citing data from the Israel-based Fancy Colour Research Foundation (FCRF). Industry executives estimate that coloured diamonds account for less than 1% of global diamond output, with only a handful of mines producing them – that too in small quantities.
The closure of Rio Tinto’s Argyle mine in 2020-once responsible for over 90% of the world’s pink and red diamonds-introduced acute scarcity, with no consistent alternative source emerging since. The resulting supply pressure has forced dealers to scramble for remaining inventory, in some cases at any cost.
