Best Diamond Stocks to Buy in 2024

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Diamond stocks are the gems and jewellery stocks that deal in diamonds apart from just gold. A big part of the diamond business is the polishing of the roughs, although this segment is still in the unorganized space and these companies are predominantly unlisted 

India’s gold and diamond trade contributed 7.5% to India’s GDP and 14% to India’s total merchandise exports. The gems and jewellery sector employs over 8.3 million people, up from just 5 million in 2020. 

Infosys 

The Government of India permitted 100% FDI in the sector under the automatic route, where foreign investors do not require prior approval from RBI or CCEA. 

The overall market size for the gems and jewellery industry in India is around $78.5 billion with the US export market being the primary driver for global demand. For FY22, India’s gems & jewellery exports touched $39.14 billion, up 54.1% yoy. 

India has signed FTA with the UAE to boost exports to $52 billion. Revised SEZ Act is also expected to boost exports of gems and jewellery. 

Government reduced custom duty on cut and polished diamond and coloured gemstones from 7.5% to 5% and NIL. Hallmarking has been made mandatory. This is likely to give a fillip to identifying the diamond stocks to buy as well as to focus on the best diamond stocks to buy in India. 

Diamond exports will also get an indirect boost from reforms like revamped gold monetisation scheme, reduced import duty on gold (12.5% to 7.5%), hallmarking etc. 

The Finance Ministry amendment under Prevention of Money Laundering Act (PMLA), notifies dealers in precious metals and stones to maintain records of cash transactions worth Rs10 lakh and more. 

This research serves educational and informational purposes only. It is not to be considered as a portfolio management service, basket recommendation, or investment advisory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.