To understand how a diamond exchange works it is important to know that it is a vital distribution position in the chain of supply. This is the point where rough diamonds are brought in to be sorted and distributed. The stones are sorted according to different attributes and distributed to manufacturers and dealers.
Although Israel is home to the worlds largest exchange center, there are also large centers located in Belgium and New York. In addition to being the largest center the Israel also has the largest trading floor in the world. Diamonds are sorted by color, shape, size, and clarity which will determine their value.
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.
After the sorting is done the next step is distributing. The sorters sell the stones to dealers and manufacturers. Many of the buyers are the owners of factories that cut and polish stones. Each sorter makes a profit that is based on the variance between selling and buying price.
Sorters earn about a ten percent profit. Israel sorts about sixty five percent of the rough diamonds in the world. This means that these sorters have more influence with the dealers. There are certain dealers allowed to conduct business with the Israel exchanges. The dealers have no guarantee that what they purchase will match their request.
Responsible for the marketing as well as distributing of the diamonds, dealers must do so in such a manner as to increase customer interest. When the interest of the consumer increases so do sales. Failure to market effectively may result in a dealer being banned from the Israeli diamond exchange.
Although Israel is home to the worlds largest exchange center, there are also large centers located in Belgium and New York. In addition to being the largest center the Israel also has the largest trading floor in the world. Diamonds are sorted by color, shape, size, and clarity which will determine their value.
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.
After the sorting is done the next step is distributing. The sorters sell the stones to dealers and manufacturers. Many of the buyers are the owners of factories that cut and polish stones. Each sorter makes a profit that is based on the variance between selling and buying price.
Sorters earn about a ten percent profit. Israel sorts about sixty five percent of the rough diamonds in the world. This means that these sorters have more influence with the dealers. There are certain dealers allowed to conduct business with the Israel exchanges. The dealers have no guarantee that what they purchase will match their request.
Responsible for the marketing as well as distributing of the diamonds, dealers must do so in such a manner as to increase customer interest. When the interest of the consumer increases so do sales. Failure to market effectively may result in a dealer being banned from the Israeli diamond exchange.
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