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Wealthy Russians Surge in Investment-Grade Diamond Purchases Amid Market Uncertainty

Demand for polished diamonds up by 60% as individuals diversify portfolios with gemstones following VAT abolition and growing financial volatility.

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Wealthy Russians are increasingly turning to investment-grade diamonds, with purchases of polished stones rising by 60% last year, according to VTB, the country’s second-largest bank. This surge in demand is attributed to the government’s decision to abolish VAT on diamond purchases, which has made gemstones a more attractive investment option.

Oksana Semenenko, vice president at VTB and head of its private banking division, explained that the rarity and uniqueness of diamonds make them especially appealing during times of rising financial market instability and tighter investment restrictions. Many affluent clients are now incorporating alternative investments, including diamonds, into their portfolios, typically allocating 5-10% of their assets to these tangible assets for diversification.

This shift comes amid increasing sanctions from the G7 and restrictions on Russian currency, which have impacted Russian diamond exports. In response, Alrosa, the state-run diamond mining giant, is turning to alternative markets to sell its goods. The company’s Diamond Exclusive program focuses on polishing its largest and highest-quality diamonds, particularly stones of 3 carats or more, to be sold directly to investors through partnerships with VTB and other financial institutions.

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DiamondBuzz

ISGJ Jewellery College & Lexus SoftMac Create 10.07-ct Brown Diamond Sculpture Of Gujarat Deputy CM

The Custom-Crafted Diamond Was Conceptualized In Recognition Of Sanghavi’s Contribution To The Development Of Gujarat and His Support For The Diamond Industry.

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In a unique tribute to Gujarat Deputy Chief Minister Harsh Sanghavi, ISGJ Jewellery College and diamond technology company Lexus SoftMac have jointly created a 10.07-carat premium brown diamond sculpture replicating his side-profile. The custom-manufactured diamond was conceptualized in recognition of Sanghavi’s contribution to the development of Gujarat, and in particular, his support for the diamond industry.

The project brought together advanced design technology, precision planning and specialized manufacturing expertise. While the execution of the diamond sculpture was carried out by Lexus SoftMac.

Developed over a period of nearly four months, the project sought to transform a diamond into a recognizable facial replica while preserving diamond yield, visual aesthetics and optical performance. The finished piece showcases a detailed side-profile likeness of Harsh Sanghavi, with the natural brown color of the diamond enhancing the depth and definition of its sculpted facial features.

Kalpesh Desai, CEO of ISGJ Jewellery College, said:

“The project demonstrated how design innovation, technology and craftsmanship can converge to create entirely new forms of diamond artistry. Creating a facial replica in diamond is an exceptionally complex process that requires extensive planning, digital modelling and artistic interpretation. Our team worked on source-image mapping, profile analysis and photorealistic simulations to develop a design that would accurately capture Harsh Sanghavi’s profile while remaining true to the characteristics of the diamond.” 

“The objective was not only to create a recognizable likeness, but also to demonstrate the capabilities of the Indian Jewellery and diamond industry in pushing the boundaries of innovation. This project reflects how modern technology can transform a concept and a photograph into a unique diamond artwork.”  he added.

Utpal Mistry, Founder & Director of Lexus SoftMac, said:

“I was working on a diamond sculpture inspired by the with Lord Krishna’s face, and it inspired the idea of creating a similar tribute for Harsh Sanghavi, whom we regard as the diamond of the state because of his contribution to Gujarat and his support for the diamond industry.”

“Converting a design concept and 3D model into a finished diamond portrait requires extremely high levels of precision in planning and cutting. It is a highly complex process involving advanced technology and meticulous execution. The final result exceeded our expectations and bears a remarkable resemblance to Harsh Sanghavi. We were delighted by his response when we presented this unique creation to him.”  he added.

The project demonstrates the diamond industry’s ability to transform concepts, photographs and digital planning models into highly customized diamond sculptures suitable for presentation, exhibition and collection.

The creators described the piece as a symbol of innovation, leadership and the limitless possibilities of diamond artistry, while also showcasing Surat’s excellence in diamond manufacturing.

The 10.07-carat premium brown diamond sculpture is among the rare examples of a custom-crafted facial replica created entirely in diamond, reflecting the fusion of portrait artistry, advanced technology and precision diamond manufacturing.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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