On January 28, 2008, we looked at the highly negative correlation seen so far this year between the overall PolishedPrices index expressed in Rupees and the Mumbai Stock Exchange (

This week we looked at the longer term relationship, starting from January 2002 when the index started.

Although the correlation between the two series is slightly negative, it is not statistically significant.

From January 2002 through to mid-2003 (can anybody remember what started then?), the two series ran more or less in parallel.

However, since then while Indian equity prices have increased fivefold, even after the recent falls, diamond prices expressed in Rupees have remain ostensibly flat.

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