Diamonds worth Crores Stuck in US Labs

92921-smallMumbai: An unprecedented delay by US-based Gemological Institute of America (GIA) in certifying of polished diamonds is worrying diamantaires in Surat and Mumbai, who are now facing liquidity problems due to shortage of gems to sell in the market, reports The Times of India.

The diamond sized below one carat (the most popular category) that are sent to Carlsbard and New York for testing and grading, are taking more than three months’ time to certify. Industry sources said the export orders have been stalled and the diamantaires are still waiting for the return of the polished goods parcels sent for certification at GIA’s New York, Carlsbard and Mumbai laboratories from the past couple of months.

This is resulting in increasing the liquidity problems as most of the products are stuck in the gemological labs of GIA. “Imagine your investment being stuck for five long months. Same is the situation of diamond company owners who have to literally wait for their diamonds for such long periods. It takes more than one-and-a-half month for the high-end diamonds to come out of the manufacturing units and it takes another five months for certification. So, we get our profit after six month,” a DTC sightholder said.

Vice-chairman, Gem and Jewellery Export Promotion Council (GJEPC), Pankaj Parekh said, “Without polished diamonds flowing in the market, how diamantaires are going to seal the deals with their overseas buyers? We have consulted the issue with GIA and they have started initiating steps to clear the huge backlog in their laboratories”