Trading Centre In Diamond Industry

A large trade exists in the diamond and gem industry. Gem and diamonds do not trade like gold and silver or any other precious metals, as they do not trade as commodity. 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. Some of the important centers in diamond trading and cutting are in Antwerp, London, New York, Tel Aviv and Amsterdam. A single company like De Beers controls a significant proportion of diamond trade. One contributory factor for diamond trade is the natural geological deposits.

The production and distribution of diamonds is largely in the hands of a few key players and is only concentrated in a few diamond trading centers in the world. Almost 80% of all rough diamonds are traded in Antwerp including 50% of all cut diamonds, making Antwerp world diamond capital. New York along with rest of the United States is where almost 80% of the world diamonds are sold. The figures may also be including auction sales. 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. The diamonds that are used industrially are valued mostly for their hardness and also for their heat conductivity. Industrially, clarity and color are simply irrelevant characteristics of a diamond. That may be the prime reason why most of the diamonds that are unsuitable for use a s gemstones, may be used industrially. Most of the synthetic diamonds also find their use in industrial applications. Industrially diamonds are used for cutting, drilling, grinding and polishing.

Most of the diamonds that are used industrially are smaller in size. Industrially, diamonds are embedded in drill tips or even saw blades or even ground into powder to be used in polishing tools. No matter what use, the supply of diamonds is still limited and also concentrated only in a small number of locations around the world. 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.

Diamonds may be sold when set in a beautiful jewelry or even loose. They can be produced and released in the market as rough diamonds where they are valued. But after being cut and polished they may be valued in billions in wholesale diamond jewelry and billions in retail sales around the world.