Diamonds rise at gold's cost

LUDHIANA: Gold is getting a bit too precious for most people to be used as a ���background��� material for studding diamonds in, say jewellers.
At around Rs 16,000 per 10g for 24 carat, the metal is giving the precious stones a run for their money.
���People used 22-carat gold for diamond jewellery earlier. Now, most are opting for 14-carat gold. That saves them around Rs 5,000 per 10g and the remaining money can be used for buying diamonds,��� said Sukhvir Singh of Sidhu Jewellers.He added that 14-carat gold tended to be of 56% purity with other metals mixed in. Sukhvir used to be a diamond merchant in Mumbai and shifted to Ludhiana recently.
Diamonds have always been an attractive proposition when it comes to matters of style. ���You can flaunt diamonds. They always make a greater fashion statement than gold,��� said Shivani, a customer.
The increasing cost of gold has come as a blessing for those dealing in diamonds, because the stones are also emerging as a more acceptable investment option for the common man.
Ashim Nagpal of Tanishq Jewellers points to this shift in mindset, ���Diamonds are as good a way to park you money as gold. People don���t mind spending on them if they have to shell out the same amount of cash. They are happy to get diamond-studded jewellery at the same price, even if the gold carats are low.���
He mentioned that the psychological barriers, which people had about maintaining gold���s purity, are finally coming down. Even those, who invest large scale in precious metals, consider diamonds to be worth buying, because of the internationally competitive prices. He added that gold might not remain as expensive because demand for the metal could soon come down.
Reema Jain, owner of Heritage Jewellers, said, ���Gold, which is of lower purity, is the best material for diamonds ornaments as it can hold the stones better. These are times when diamond-studded steel and silver jewellery is also being bought. So, jewellers have realized that customers are after diamonds and not gold.���