Rough Diamond Prices

Rough diamond prices are influenced by a few principle criteria. The location of the transaction plays a role in the rough diamond prices, i.e, Europe, Africa, USA, CIS or other countries or locations. The location of the physical transference of said diamonds also influences how rough diamond prices are recorded. It also depends upon the methodology adopted to make payment, be it cash, wire transfer, C.O.D., etc. The costs covered to buy diamonds in the rough influence the price at which they are sold. These costs include the travel, hotel, negotiations, etc. Finally, the crystalline structure of diamonds determines the price of diamonds in the rough. It is imperative to have knowledge of the basic structures of the diamonds to be sold. The structures are based upon the stone, shapes, cleavages, flats and the macles.

A very reliable method of determining the classification of crystalline structure of rough diamonds would involve the calculations of the purchase price, because obviously all crystalline diamond shapes do not produce the same yield. The stone structure of the rough diamond yields 50 per cent of the finished product, the shape of the structure constitute 45 per cent, the cleavage structure makes up 35 per cent, the macles structure makes up 28 per cent and the flats structure is equal to 25 per cent of the finished product. Each diamond chart for every category of diamond will give the information about the rough diamond weight, an image of the crystalline structure, an overall description of the crystalline structure of the diamond, the number of finished stones, the maximum values per carat for a rough diamond, the calculated weight of the polished and the rough diamond, the color and clarity scale.

International Diamond Exchange

An international diamond exchange, for a diamond supply chain, serves as a central distribution point. An international diamond exchange sorts and distributes recently mined rocks. A variety of characteristics judge how diamonds are sorted, and after being sorted, the diamonds are distributed to jewelry manufacturers and dealers, where the diamonds are cut in specific fashion and are sold. Ramat Gan is the world’s largest international exchange, near Tel Aviv, Israel. The Diamond Tower is in Ramat Gan, where the world’s largest diamond trading floor presides, along with many other international exchange buildings.

Among many other large international diamond exchange centers are New York City and Antwerp, Belgium. Diamond traders working in an exchange purchase the rough products from diamond mines in an exchange. The values which are used to sort the rough diamonds are size, shape, clarity and color. Specialized training and aptitude is required of the sorters working in an exchange. The constant proximity to diamonds requires a background check of all the sorters. Diamond exchanges use ultra-sensitive scales to measure the weight of each sorter’s diamonds before and after sorting because every 142 carats of diamond produce barely over one ounce of usable stone.

The international diamond exchange’s second element of operation is the distribution. The sorters work in the exchange then sell their packages of usable stones to diamond dealers, once they are done sorting them, many of these dealers send it to their cutting and polishing factories. Diamonds may even pass through multiple dealers before reaching the customer. The difference between the buying and selling price of the stones is how the profit of a sorter is measured. In most cases, sorters make a profit margin of about 10 per cent. The diamond exchange of Israel sorts approximately 65 per cent of the rough diamonds in the world. This is why the sorters working at the exchange have an advantage over the others.