Indian diamantaires offer significant discounts on diamonds weighing more than 0.5 carats and tapeworms for both local and foreign buyers to sell their vast inventory.
Sources familiar with the situation on the market report that diamantaires held the goods in warehouses, waiting for the Diwali holiday season, when the prices for diamonds are growing, and the end of the recently concluded exhibition in Hong Kong. Many companies that participated in the event realized large volumes of products, offering attractive discounts to wholesale customers at wholesale rates ranging from 7% to 10%.
Also, significant discounts are offered by those trading companies that faced the prospect of a liquidity crisis against the background of reduction by banks-creditors of their borrowed risks. Diamond companies, especially in the small and medium-sized businesses, which are facing a severe shortage of cash, have to realize inventories.
"The dealers want to liquidate their stocks in order to get cash on the eve of the Diwali holiday ADB has canceled the work, Standard Chartered Bank has decided to reduce the volume of lending to the diamond and diamond industry, which may lead to a liquidity crisis, which in the future will hit the industry quite hard Acting in this way, dealers want to ensure the availability of funds after the holidays, "- said the president of the Diamond Association Surat (Surat Diamond Association) Dinesh Navadiya (Dinesh Navadiya).
The current state of the market can play into the hands of buyers of diamond jewelry, analysts say. Gold prices have significantly decreased compared to the same period a year earlier, and large discounts before the start of the holiday season can allow buyers to knowingly win. This year, during the "festival of lights" Diwali, Indian consumers are projected to purchase diamonds for a total of more than $ 2 billion.
Procurement of rough diamonds has actually stopped, as the cutting companies will not work in connection with the holidays over the Diwali holiday, which will begin on 20 October and will last three or four weeks.