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 centers located in New York and in Belgium with the largest one near Tel Aviv Israel. The Israeli center is also known for housing the worlds largest trading floor. In these centers sorters separate the stones by size, color, clarity, and shape. These specific features will determine the value of each stone.
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.
A sorter earns a profit of around ten percent. Israeli sorters will separate around sixty five percent of all the rough diamonds worldwide. What this means is those sorters have a dealer advantage. Specific dealers are permitted to do business in Israel. There is no guarantee that dealers will get stones that meet their specific requirements.
Dealers are responsible for marketing and distributing their diamonds in a way that will increase consumer interest. Improved interest will promote sales. If a dealer fails to effectively market and sell the stones the diamond exchange in Israel can ban them from future transactions.
There are large centers located in New York and in Belgium with the largest one near Tel Aviv Israel. The Israeli center is also known for housing the worlds largest trading floor. In these centers sorters separate the stones by size, color, clarity, and shape. These specific features will determine the value of each stone.
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.
A sorter earns a profit of around ten percent. Israeli sorters will separate around sixty five percent of all the rough diamonds worldwide. What this means is those sorters have a dealer advantage. Specific dealers are permitted to do business in Israel. There is no guarantee that dealers will get stones that meet their specific requirements.
Dealers are responsible for marketing and distributing their diamonds in a way that will increase consumer interest. Improved interest will promote sales. If a dealer fails to effectively market and sell the stones the diamond exchange in Israel can ban them from future transactions.
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To learn more about wholesale diamonds for investments, simply call Investment Diamond Exchange (IDX) and a diamond representative will answer all of your questions.