While diamond is not a preferred investment option globally, India recorded growth in diamond jewellery sales in 2014. The demand for the precious metal in India is tied to the dynamics of gold. High gold prices in 2013 led to slowing purchases of gold jewellery as an investment and drove down overall demand for jewellery. Softening of retail demand for diamond jewellery has affected the value chain, especially in the India. Prices of polished and rough diamond have dropped 8% and 15%, respectively, since the beginning of this year as short-and long-term factors have shaped price dynamics. Lower margins are driving weaker cutting and polishing players out of business.