Surat: The diamond trade has been going through an unprecedented slowdown in the last two years, specifically in natural diamonds. In these challenging times, there is one natural diamond product that is seeing demand maintained even as larger stones have seen sharp price declines.
This product is “star melee”, tiny diamonds, referred to as ‘patla’ (thin) in local markets. Due to their use in a wide range of products, these diamonds are challenging lab grown diamonds (LGDs). These tiny diamonds are also a major source of employment as they require more hands. Due to their low cost compared to larger natural diamonds, they are affordable to more people.
As the markets reopen after the Diwali vacation, an increase in polished star melee diamonds is being seen in the market as supply is short.
In this category, 25 to 150 diamonds make up one carat. Their major use is in fine jewellery and in accessories such as wristwatches, pens, or belts. Due to changing designs and consumption of these affordable luxury products, the demand for these diamonds is consistent.
“These diamonds have a consistent market as their products are not expensive, even now. Due to their low cost, more people can afford them compared to larger natural diamonds,” said Dinesh Navadiya, chairman, Indian Diamond Institute.
While the natural diamond’s nearest competitor, LGD, cannot heavily affect these sizes, the cost of roughs is low in these sizes compared to larger natural diamond roughs, while its polishing labour cost is higher. The labour cost is similar to that of LGDs, roughs of which cost less.
“There is a price difference between LGDs and natural diamonds in star melee, but it is smaller than in larger natural diamonds. For a difference of a few thousand, people would prefer to wear natural diamonds in jewellery,” said Nandlal Nakrani, a diamond broker.
Russian roughs are smaller in size and make up the major portion of star melee polished. The restrictions on Russian roughs are affecting production gradually.
“Star melee has consistent demand with changes in fashion and jewellery at regular intervals. Further, due to the smaller size, it provides employment to more workers. Artisans earn as well in this category as in larger diamonds,” said Balu Vekariya, a diamond broker.
