How to buy Diamonds through Systematic Investment Plan (SIP)?

How to buy Diamonds through Systematic Investment Plan (SIP)How to buy Diamonds through Systematic Investment Plan (SIP)?

Recently there was news about buying diamonds online and through SIP. Have you ever heard of paying SIP for buying diamonds? There are millions of Indians who really dream to buy precious stones like diamonds but lack of sufficient financial resources detain them to bring their dreams come true. But, now they need not wait more. So far, only mutual funds and gold funds could be bought through the channel of SIP, but now buying of diamonds is also possible through SIP. How to buy Diamonds through SIP in India? How to open account with ICEX to trade diamonds? What is the minimum amount of SIP required to invest in Diamonds?

Also Read: Best High Return Investment Options in India

What are diamonds and how are they comparable with gold, silver and platinum?

Diamonds are colorless precious stones that carry great value. They are used in making jewellery to adorn their bodies. They can be kept under the category of precious metals and are even more expensive than silver, gold or platinum. They are considered as a symbol of high social status. However they carry low liquidity compared to yellow metal like Gold.

What is the latest news about SIP in Diamond?

Like mutual funds and gold funds, it is also possible now to buy diamonds through SIP. After SEBI’s approval, Indian Commodity Exchange (ICEX) is commencing the world’s first diamond trading bourse in India.

Who is authorized to sell diamonds in India through exchanges?

Recently, SEBI has granted the approval to ICEX to start the diamond trading bourse. This is probably the first time in the world that any bourse is trading in diamonds. The ICEX will launch a SIP (systematic investment plan) for retail buyers to acquire the precious stones.

How to open account with ICEX for diamond trading?

To become a part of diamond SIP scheme, one has to open an account with the broker on the ICEX. They have to complete the KYC (know your client) process and deposit some money with the broker. The buyer needs to tell the broker the exact date of each month on which he should buy the diamond (electronic form) for the buyer.

What documents are required to open account with ICEX?

The account opened with ICEX is just like a demat account of shares and the procedure also more or less remains the same. The documents that you may require include passport, aadhar card, PAN card, ration card, driving license, voter ID, permanent address proof, recent telephone or electricity bill etc.

What is the minimum amount and tenure for buying Diamonds through SIP?

The minimum monthly SIP amount will vary according to the price of the diamond. However, at current prices, a 30 cent diamond cost around Rs. 27,000. So, each cent is costing Rs. 900. So, one need to invest a minimum of Rs. 900 every month for 30 months to take the physical possession of 30 cent diamond. In case, the investor fails to pay the SIP for any month, his already bought holdings of previous months will continue to remain in his demat account and whenever, he wishes to start, he can start with the SIP once again. They is also allowed to sell the diamonds to ICEX any time, during the duration of the SIP at the prevailing market rate.

What diamonds would be traded on ICEX Exchange?

The ICEX is starting to trade in diamonds for three different sizes- 30 cents, 50 cents and 100 cents (1 carat). Alike stock market, diamonds are traded here in electronic form, known as demat. As these diamonds are available in demat form, the investor can buy as small as one cent of the precious stone.  But, they will be able to convert the diamond held in the demat account to physical form only when they have accumulated a minimum of 30 cents.

Also Read: How to get Highest Returns from Mutual Funds in India?

Can we expect price appreciation and invest in diamonds through SIP?

At ICEX, the diamonds are traded at current market prices and being a precious metal, it is expected that their prices will appreciate with time. It is a great means to collect certified diamonds by paying just a small amount every month. The plan of ICEX is to make high quality diamonds available to common man. All the diamonds are natural and certified by De Beers, a global company trusted for quality, genuineness, polish, cut etc. A retail investor can start SIPs with a nominal amount, buy and take delivery of fixed electronic units at each expiry and this can be a great way of accumulating diamonds. However one may not expect price appreciation the way mutual funds or stocks would provide the returns. 

Conclusion: Buyind diamonds through SIP is one of the good investment option that came recently. We need to wait and see how this new way of investment would help investors in coming years.

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How to buy Diamonds through Systematic Investment Plan (SIP)

Suresh KP


  1. Hello Suresh, thanks for such informative articles.
    Is it good time to invest in ICEX diamond SIP? Keeping in view it’s running since 1 year.

    1. Banking and Financial Services is good investment for the long term (5+ yrs). You can either invest in one of the Banking & Financial services schemes from ICICI MF, Invesco or Reliance Banking MF. Instead of Pharma, it may be advisable to invest in Health care which is more broad based, despite being sectoral in nature. Mirae Healthcare fund is a good choice.

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