Discover How The Diamond Exchange Works
To figure out how a diamond exchange works it is important to know that it is a critical distribution point in the chain of supply. This is the point where rough and polished diamonds are brought in to be sorted and distributed. The stones are sorted according to different characteristics and distributed to manufacturers and finally jewelers.
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.
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.
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.
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:
To receive additional information about loose diamonds for investments, simply call Investment Diamond Exchange (IDX) and an agent will answer all of your questions.
posted by Vittoria @ June 29, 2013
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