To understand the diamond exchange business you must first know it is the most important part of the gemstone supply chain. At this stage diamonds are separated and then distributed. Stones are separated according to their attributes and then sold to dealers and jewelry manufacturers.
There are large exchange centers in New York, Belgium, and the largest is in Israel. The center in Israel is home the largest trading center in the world. These centers are where the stones are sorted according to clarity, size, shape, and color. These attributes determine the value of the diamonds.
Because the diamonds are hand sorted the people who do the sorting are put through an extensive background investigation. The sorters are specially educated and must have the aptitude for this type of work. Every package that is sorted is weighed prior to and following sorting on a very sensitive scale.
The next phase in the operation is distribution. When the sorting is done, sorters who work in the centers will sell their stones to dealers. Many of the dealers own factories for cutting and polishing the stones. The sorters make a profit based on the difference between the buying and selling price of the stones.
A sorter earns a profit of around ten percent. Israeli sorters will separate around sixty five percent of all the rough diamonds worldwide. What this means is those sorters have a dealer advantage. Specific dealers are permitted to do business in Israel. There is no guarantee that dealers will get stones that meet their specific requirements.
The dealer is responsible for distributing and marketing their purchase in such a way as to increase the interest of consumers. When the interest is heightened diamond sales will increase. If the dealer fails the Israeli diamond exchange has the right to ban future trading.
There are large exchange centers in New York, Belgium, and the largest is in Israel. The center in Israel is home the largest trading center in the world. These centers are where the stones are sorted according to clarity, size, shape, and color. These attributes determine the value of the diamonds.
Because the diamonds are hand sorted the people who do the sorting are put through an extensive background investigation. The sorters are specially educated and must have the aptitude for this type of work. Every package that is sorted is weighed prior to and following sorting on a very sensitive scale.
The next phase in the operation is distribution. When the sorting is done, sorters who work in the centers will sell their stones to dealers. Many of the dealers own factories for cutting and polishing the stones. The sorters make a profit based on the difference between the buying and selling price of the stones.
A sorter earns a profit of around ten percent. Israeli sorters will separate around sixty five percent of all the rough diamonds worldwide. What this means is those sorters have a dealer advantage. Specific dealers are permitted to do business in Israel. There is no guarantee that dealers will get stones that meet their specific requirements.
The dealer is responsible for distributing and marketing their purchase in such a way as to increase the interest of consumers. When the interest is heightened diamond sales will increase. If the dealer fails the Israeli diamond exchange has the right to ban future trading.
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