Wednesday, October 31, 2012
Singapore's diamond market shines on luxury, investment appeal
The recent showing of a massive diamond in Singapore may herald a surge in the market for gems in the wealthy city state - or so hopes the diamond trader who brought it in, betting on rising demand both for luxury and investment potential.
The 110-carat "Yellow Dragon" diamond, valued at $11 million to $15 million, would normally have been showcased in more established diamond markets such as Geneva, New York and London, said Vihari Sheth, managing director of Vihari Jewels and a third-generation diamond trader.
But Sheth decided to bring the stone to Singapore first due to growing interest for precious stones in the city-state, which she said has the potential to be on par with more developed gem markets within a decade.
"There's always going to be demand for something which is this high-end and exclusive," she said of the yellow diamond. "The person has to find the diamond, the diamond doesn't find the person."
Sheth said 5-to 20-carat diamonds, valued anywhere from $500,000 to $6 million, are selling quickly. Most of her clients, who tend to be from their 40s to early 50s, are permanent residents of Singapore such as Indonesians, Indians and Chinese.
Her move is part of a broader trend of luxury product promoters shifting focus to Singapore and Asia from the West - and for good reason.