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.
Once the gems are carefully sorted by their attributes they are ready to be distributed. The individuals who sorted the stones will also sell them to the dealers. Many dealers own cutting and polishing factories. The sorters profit is based on the variance between the purchase price of the stones and the sale 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.
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.
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.
Once the gems are carefully sorted by their attributes they are ready to be distributed. The individuals who sorted the stones will also sell them to the dealers. Many dealers own cutting and polishing factories. The sorters profit is based on the variance between the purchase price of the stones and the sale 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.
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.
About the Author:
Investment Diamond Exchange (IDX) provides investors with the lowest polished diamond prices in the industry. To inquire about investing in diamonds, simply visit IDX and a representative will educate you.
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