Diamond pricing is more complex than gold pricing. Theoretically, the 4Cs carat, color, clarity, cut and the shape determine the price. But within the diamond industry, depending on grading techniques and experience of the grader, prices often vary and at times the price margin varies by more than 20%. A diamond is also priced according to the grading certificate that comes with it.

Gitanjali Group will launch a Diamond Pricing Website for India. An index for diamonds, on the lines of the gold index, will be ready in the next few months. With several scandals hitting the industry, a credible diamond pricing mechanism, would be welcomed by domestic industry.

"If you want to know the price of gold, all you have to do is walk into a jewelers shop or log on to various business sites. We need to make diamond pricing simple for anyone who wants to buy a stone in whatever shape, size or clarity," says Mehul Choski of Gitanjali group. “The diamond index that Choksi and his consultants are working on will make buying diamonds easier. One will be able to log on to a web site and each day, the site will be updated with the prevailing price of diamonds, from the smallest pointers to large stones. Price will be determined by four to five industry veterans and analysts. The pricing mechanism will take into account various demand and supply factors,” adds Choksi.

The new diamond index will have prices of the smallest stones from one pointer to the larger ones taking into account demand and supply scenario will add to consumer confidence. The index will have prices of smaller stones and will take into consideration the prevailing market conditions in India. It will be free for all to access. “A diamond pricing index, if done with proper research, would be a boon for consumers and the industry. It will create confidence,” said Sanjay Kothari, former chairman of Gem and Jewellery Export Promotion Council.