A diamond exchange serves as the central distribution point in the supply chain of these precious minerals. Recently mined diamonds are brought here for sorting as well as distribution. There are several characteristics that are used in sorting. The diamonds are then distributed to manufacturers of jewelry and dealers. They are then cut and polished before being sold.
In Israel you will find the biggest exchange in the world. It is located near Tel Aviv in Ramat Gan. The trading floor here is also the largest. Other big exchanges are located in Antwerp, Belgium and in New York, America. Diamonds are obtained from mines and sent to the exchanges. They are bought in rough form.
Rough diamonds are sorted according to characteristics such as size, color, clarity as well as their value and shape. This process is carried out by people and it is therefore subjective. Sorters are usually taken through specialized training. They are also subjected to a serious background check because of their proximity to diamonds. For every 142 carats only one ounce is usable. Exchanges therefore use very sensitive scales to weigh each package of diamonds that goes through a sorter.
Another element of an exchanges operation is distribution. After careful sorting the sorters are required to sell their diamonds to dealers. Most dealers have their own polishing and cutting factories. At times some diamonds go through many dealers before they reach the end consumer.
In order for the sorter to make profit he or she must sell the diamonds at a price which is higher than the buying price. Most of the experts get a profit margin of about 10 percent. The more rough diamonds an exchange sorts, the more profit they expect.
The diamond exchange that deals with most of the rough diamonds is located in Israel. Over 15 percent of all mined diamonds are sent to this center. Sorters who work here get more leverage than the dealers.
In Israel you will find the biggest exchange in the world. It is located near Tel Aviv in Ramat Gan. The trading floor here is also the largest. Other big exchanges are located in Antwerp, Belgium and in New York, America. Diamonds are obtained from mines and sent to the exchanges. They are bought in rough form.
Rough diamonds are sorted according to characteristics such as size, color, clarity as well as their value and shape. This process is carried out by people and it is therefore subjective. Sorters are usually taken through specialized training. They are also subjected to a serious background check because of their proximity to diamonds. For every 142 carats only one ounce is usable. Exchanges therefore use very sensitive scales to weigh each package of diamonds that goes through a sorter.
Another element of an exchanges operation is distribution. After careful sorting the sorters are required to sell their diamonds to dealers. Most dealers have their own polishing and cutting factories. At times some diamonds go through many dealers before they reach the end consumer.
In order for the sorter to make profit he or she must sell the diamonds at a price which is higher than the buying price. Most of the experts get a profit margin of about 10 percent. The more rough diamonds an exchange sorts, the more profit they expect.
The diamond exchange that deals with most of the rough diamonds is located in Israel. Over 15 percent of all mined diamonds are sent to this center. Sorters who work here get more leverage than the dealers.
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