The Diamond Industry
Executive Summary about Diamond Exchange by John Lacey
jewlery exchange
Almost 80% of the worlds diamond production and rough supply is managed by “De Beers”. All sorted and valued diamonds go to London to the Diamond Trading Company.
There are currently only 120 individuals accredited by the Diamond Trading Company who are allowed to purchase diamonds. The resale of the diamonds is carried out by direct buyers normally on diamond exchanges, which are basically large diamond markets.
All the diamonds that De Beers brings on the market are first classified into one of the 16,000 different standards of quality, based on their form, quality, colour, and size.
Only about 20% of all diamonds are classified as “gemstone quality” and used in making jewellery, the rest are sold to industry as “industrial diamonds” for drilling, cutting, and milling purposes.
The hardest diamonds in the world are from New England in Australia, and are used mainly to cut other diamonds.
Trading Centre In Diamond Industry
Executive Summary about Diamond Exchange by Lalit Sharma
A large trade exists in the diamond and gem industry. There is a well established market for trading of polished diamonds.
Remarkable concentration may be one of the hallmarks for trade in diamonds as compared to wholesale trade or diamond cutting which are just limited to just a few locations.
A single company like De Beers controls a significant proportion of diamond trade. One contributory factor for diamond trade is the natural geological deposits.
Almost 80% of all rough diamonds are traded in Antwerp including 50% of all cut diamonds, making Antwerp world diamond capital. Almost all unusual shaped diamonds also do end up in the United States.
The world Federation of Diamond Bourses standing next in the supply chain does act as a medium for wholesale diamond exchange, including the trading of both polished and unpolished diamonds.
The market for industrial grade diamonds is much different as compared to its related gem grade diamond. Industrially, clarity and color are simply irrelevant characteristics of a diamond.
Industrially diamonds are used for cutting, drilling, grinding and polishing. Most of the diamonds that are used industrially are smaller in size.
Diamonds which are usually prepared as gem stones may be sold in diamond exchanges called as bourses. Around the world there are nearly 26 registered bourses.
Wholesalers and even retailers can buy diamonds from bourses but the lot may be a little small, after which they may be prepared for final sale to the consumers.
Also, check out my other guide on: Diamond Earring and Conflict Diamonds