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A Diamond Bourse (Exchange, Bursa, or Beurs) is a private commercial enterprise governed by its own set of rules and regulations. Membership in a Bourse is personal and restricted to individuals only (ie: not companies), and involves both obligations and privileges. A member is fully responsible for any, and all, of his own transactions and those of his company.
The trading floor/hall is a meeting place where diamond buyers and sellers meet to trade in all types of diamonds, both polished and rough. Access to the trading hall of a Bourse is limited to its members, members of foreign Bourses, and buyers (usually accompanied by a member who vouches for them).
Should a dispute or disagreement arise, an integral part of each Diamond Exchange is its system of arbitration, which is recognized by the other Bourses and whose decisions are binding on its members (and the members of any of the affiliated Bourses).
| The by-laws, requiring members to bring all disagreements to the Bourse's judicial committee and abide by the decisions of the arbitrators, are considered to be sacrosanct. |
The World Diamond Congress
At the first meeting of the WFDB, which was held in Antwerp in July 1947, it was decided to develop a worldwide network of Diamond Clubs, with bi-annual meetings. World Diamond Congresses are held every 2 years, at which delegates from affilated Bourses meet to discuss issues facing the industry; diamantaires having a long tradition of cooperating with one another (within the framework of the Bourse), although they daily compete with one another (both on the domestic and global markets).
The 29th Diamond Congress, sponsored by the World Federation of Bourses and the International Diamond Manufacturers Association, was held in Antwerp, July 16 -19, 2000. More than 300 diamantaires participated, together with representatives from the diamond producing countries, mining companies, professional organizations, banks, governments, and De Beers. Concurrent with the Congress, there were two exhibitions organized by the Antwerp Diamond Museum:"500 Years Antwerp World Diamond Center" and "Fancy Cut Diamonds".
A summary of their recent conference is on our sister site, found here but remember to use your 'Browser Back' to return to this page.
Diamond Centers in Europe - Past and Present
The history of the diamond industry can be traced back to a time when gem traders, who travelled the caravan routes for months at a time, were instrumental in developing certain cities as centers for their trade. A number of interesting factors contributed to the city's becoming a diamond center including the source of the rough diamonds, the primary trade routes, financing considerations, religious persecution, and, very possibly the most important, family relationships.
Venice was the primary link between Europe, India, and the East in the 13th century, and developed a monopoly in the diamond trade, maintaining its position until the 1460's when it lost its dominance to Lisbon.
Lisbon became a diamond center in 1498 with the discovery by the Portuguese of direct sea routes to India. The Inquisition in Portugal (and the expulsion of the Jewish community from Lisbon) led to its eventual decline as a center.
Bruges was an important Belgian trading and cutting center during the 13th Century until the end of the 14th century.
Amsterdam attracted many to the craft of diamond cutting during the late 16th century because of the lack of guild restrictions there. In the 17th century, Amsterdam bought rough directly from India, became an important diamond center, and continued until the period between World War I and II. No longer a cutting center, there is still an active Bourse, the Vereniging voor den Diamanthandel, located in the city. e-mail: diamondbourse.amsterdam@inter.nl.net
Antwerp, an important diamond cutting center since the 15th century, replaced Amsterdam as the "capital" of the diamond industry trade after WWII, and is now considered the principle trading center in this diverse global industry.
World War II had a dramatic effect on it as a diamond center because the industry literally disintegrated when Jewish diamantaires were forced to leave Belgium. Some of the more fortunate were able to establish themselves in the USA, Cuba, Great Britain, and Palestine; after the war, in the aftermath of the Holocaust, Antwerp re-established itself as a major
force in the international diamond community.
The "Club", the oldest bourse in Antwerp, set a precedent with its arbitration board. Members of the Diamantclub van Antwerpen first met (as a traders society) in 1886 at the Cafe Flora, and later moved to a residence on Simonsstraat in 1892. By 1910, the "Club" had been rebuilt three times. In 1969, an eleven floor building was built at 62 Pelikaanstraat. e-mail: diamantclub.van.antwerpen@pandora.be
- Established in 1898 as the "Diamond Casino" which met at 36 Pelikaanstraat, the Beurs voor Diamanthandel was founded in 1904 and incorporated as a cooperative business; by 1929 there were more than 2,000 members. Built in 1921, the original building 78 Pelikaanstraat)was expanded in 1957, and extended through to Hoveniersstraat in 1970.
www.antwerpdiamond.be e-mail: diamexch@iway.be
- Founded in 1911, and established as the Vrije Diamanthandel in 1919, this exchange was primarily a meeting place for the manufacturers from the Kempen
district (who first met in a cafe on Pelikaanstraat belonging to Jos Springer). The Vrije's original building was destroyed in 1944. It is now located, as a separate entity, in the Diamantclub.
- As the rough trade developed, a separate Exchange for rough was required, so the Antwerpsche Diamantkring was established by dealers who first met at the Fortunia Building, and later moved, in 1930, to the Klein House at 86 Pelikaanstraat. In 1941, the German occupying force ordered the Kring to give up its premises and members found a temporary location at the Beurs. The Kring reopened in 1947, and, since 1986, has been located in the ADC building on Hoveniersstraat.
Although trading is still conducted in the trading halls (trading floors) of the respective Bourses, most of the "buying and selling" transactions take place in one of the offices in Antwerp's well protected, inter-connected streets, Hoveniersstraat, Schupstraat, and Rijfstraat. Some of the buildings on Hoveniersstraat also have entrances from Pelikaanstraat.
LOOK 2000 (referred to as a "face lift") is planned for the diamond district in cooperation with the Antwerp Academy for Fine Arts and the High Institute for Fine Arts.
There are a number or organizations and associations affiliated with the trade and industry including a wonderful museum located adjacent to the diamond district on Applemenstraat.
- Diamond High Council Hoge Raad voor Diamant HRD www.diamonds.be
- Diamond High Council Hoge Raad voor Diamant HRD www.hrdcan.com
- Provinciaal Diamantmuseum Antwerpen Tel: (32.3) 202.48.90
- Syndikaat der Belgische Diamantnijverheid Tel:(32.3) 232.46.60
- Vereniging van Kempische Diamantwerkgevers Tel:(32.3) 233.30.88 Antwerp
London developed diamond ties when Portuguese Jews moved there during the 17th Century. London became a center for the distribution of rough diamonds because of its connections with India and the new discoveries of rough in Brazil.
The London's Diamond Bourse and Club is located at 100 Hatton Gardens. their fax is (44-171) 831-3860.
London is also a financial center of global importance; however, London's importance for the diamond industry is the fact that it is the home of De Beers and the headquarters of the DTC (the Diamond Trading Company.
De Beers, the world's largest diamond mining company (open-cast, underground, alluvial, coastal and marine), produces approximately 40% (by value) of the world's rough diamonds from its own mines in South Africa; and, (in partnership with individual governments) in Botswana, Namibia, and Tanzania. De Beers markets the rough from the Debswana mines in Botswana, Namdeb in Namibia, the Mwadui mine in Tanzania, and the De Beers Consolidated Mines in South Africa.
De Beers has offices and associates, for mining and marketing, in many countries including South Africa, Switzerland, the United Kingdom, Belgium, China, Israel, India, Russia, Botswana, Namibia, Angola, Tanzania, Canada, Ireland, Japan, Sweden and Hong Kong. Sorting operations take place in Antwerp, Lucerne, London, Botswana, South Africa, and Namibia. Sights
are held in Lucerne, Johannesburg, and London.
The DTC is the part of the De Beers Group responsible for sorting the rough diamonds (from all over the world) into some 16,000 categories (shape, size, quality and color); valuation; and, then, marketing and sales of the rough diamonds to their sightholder clients.
The offices of De Beers at 17 Charterhouse Street, London, are the venue for the 10 sights that are held during the year. Sightholders, both manufacturers (of polished) and dealers (in rough), meet in London, once every 5 weeks, 10 times a year, to inspect their diamond allocations. The brokers who represent De Beers with their sightholder clients have their principle offices in London in close proximity to Charterhouse Street.
On July 12th, De Beers announced its new policy with respect to its sightholders and its distribution system. The new "Supplier of Choice " strategy includes the creation of a powerful new identity, the introduction of a policy statement, and a code of professional and ethical standards ("Best Practice Principles") to insure continued consumer confidence through the industry's commitment to the highest professional and ethical standards.
Nicky Oppenheimer, the Chairman of De Beers Consolidated Mines, Ltd., is quoted as saying that the new "strategy places De Beers and its partners in a stronger position to meet the business and consumer challenges of the future." For more information on the subject, please visit: www.debeers.ca
Far East
The Asian markets are quite diversified, and there are a number of Diamond Exchanges in the Far East.
- The first Asian diamond bourse, the Diamond Club of Singapore, opened in 1976. diaexsin@mbox2.singnet.com.sg
- The Hong Kong Diamond Bourse opened in 1985. e-mail:
hkboure@hk.star.com
- In Japan, the Tokyo Diamond Exchange Inc. fax is (813) 3839-4645.
Tokyo is the home office of many diamond importers and dealers for the Japanese market; there are also a number of representative offices of the leading diamond manufacturers from around the world. The Philippines is also a diamond trading center. Thailand is both a manufacturing and trading center with many offices for diamonds and precious stones located in Bangkok.
- The Thai Diamond Manufacturers Association telephone is (662)390-0341.
- The Bangkok Diamonds & Precious Stones Exchange fax is (662) 226-0610.
Hong Kong and Taiwan, important diamond trading centers in their own right, are considered to be "thresholds" to the Far East markets including Korea and China. Each country also has a number of organizations and associations affiliated with its diamond and jewelry industries.
- Hong Kong's Diamond Importers Association Ltd. e-mail: lilychen@att.net.hk
- Hong Kong Jewellery Manufacturers Association www.jewellery.org.hk e-mail: hkjma@hkstar.com
- Hong Kong Jewellery and Jade Manufacturers Association e-mail: hkjja@hkstar.com
- Tainan Jewellers Association Taiwan Tel: (886 6) 225 3984
- Taipei Jewellers Association Taiwan Tel: (886 2) 557 3261
- Taiwan Jewellers Association (Taipei) Tel: (886 2) 361 1245
- Korea Jewellers Association Seoul Tel: (82 2) 754 9989
Although China is considered to be a relative newcomer,it is becoming an effective manufacturing center. Inexpensive labor being its main advantage, a few foreign sightholders "outsource" there; and a number of Hong Kong based companies (as well as some from Israel, Belgium and India), have cutting and polishing facilities there. Labor costs in Shanghai
factories, and a few in Guangdong, are said to be comparable with Bangkok; whereas, inland, costs are closer to the diamond cutting costs in India.
China imports approximately USD$500 million of rough diamonds annually, and specializes in the sawn and sawable categories of rough (that don't demand
high technology). Some factories are already cutting fancy shapes, and others, in southern China, have been cutting larger goods (up to 2.00 carats).
There are 3 rough diamond mining areas in China: the Wafangdian Mine, in Liaoning province in northeastern China; an area of alluvial diggings in Hunan province in the central part of the country; and, the Mengyin Mine in Shandong province; the rough, most of which is exported, includes assortments from $30 to $125 per carat.
- China External Trade Development Council www.cetra.org.tw e-mail: portia@frontiernet.net
To facilitate trading in the future, interested parties in the industry are working on a Diamond Exchange project (planned for Shanghai's Pudong district).
An article on www.diamondnews.com, August 8th, said that plans were going ahead, and the Diamond Exchange should be active towards October 2000 (source: China Daily). An article from www.muzi.com (June 17, 2000) said that the China Diamond Association, a group of 15,000 diamond cutters, was recently set up in the eastern coastal city of Qingdao.
India
Many of the leaders of the Indian diamond industry are members of prominent diamond families with long histories in diamonds. A number of the older generation started off as traders and merchants before establishing their export industries; and some founded serious counterparts to their businesses both in Antwerp and Ramat Gan, in the late 1950's. A number of their home offices in Mumbai are the headquarters of independent global diamond networks with offices worldwide. Many are also traded on the Stock Exchange in India.
Mumbai is the home base of 1000's of diamond companies, which are mostly the export offices of manufacturers and dealers. Many of Mumbai's diamond cutting and polishing facilities are located in the Maharashtra district. The gem and jewelry factories are located, near the international airport, in the Seepz Gem and Jewellery Complex in Mumbai.
"Indian-type goods" are considered to be: makeables, cleavage, and rejection rough diamonds. Almost 80% of the diamonds, cut and polished in India, are
processed in the thousands of diamond factories and smaller units located, in and around Surat, in the State of Gujurat. Other cutting and polishing units in Gujarat are located in Ahmedabad, Bhavnagar, Navsari, Palanpur,
and Valsad. There are a also few facilities in Coimbatore in Timilnadu, Jaipur in Rajasthan, Trichur in Kerela, and Goa.
There are a number of organizations and associations affiliated with the Indian diamond industry both at home and abroad.
- The offices of the Gem & Jewellery Export Promotion Council are in Mumbai. The Council's website is at www.gjepc.org
- Bharat Diamond Bourse Mumbai Tel: (91-22)382 0174
- Diamond Exporters Association Mumbai Tel: (91 22) 361-2045
- The Mumbai Diamond Merchants Association Tel: (91-22) 363-0816
- Surat - Indian Diamond Institute kks@Bom6.vsnl.net.in
- Los Angeles, California: The Indo Argyle Diamond Council IADC participates at many of the international jewelry trade shows. Tel:(310)284-6068
- New York: Indian Diamond & Color Stone Association www.idca.net idca@worldnet.att.net The IDCA publishes a directory of its members which is also available
on its website.
- Belgium: The Antwerp Indian Diamond Association, at 92 Pelikaanstraat, publishes a directory of its members.
Tel: (323) 232 1910 Fax: (323) 232-1780
Israel
Ramat Gan became the diamond center of Israel when the first building of the Diamond Exchange was built there in 1968. Petach Tikva was the site of the first polishing unit, set up in 1937, 11 years before the State was declared. Netanya was the country's primary diamond cutting center for many years. There are manufacturing facilities in many cities throughout the country including Ramat Gan, Tel Aviv, B'nai Brak, Jerusalem, Safed, and Nazareth.
Well known for fancy shapes and all sizes and qualities of rounds, Israel is one of the major diamond manufacturing centers. It is also trying to establish itself as a serious rough trading center. The Ministry of Industry and Trade has granted "Free Trade" status to the part of the bourse trading floor that was set aside for the trade in rough.
Photo of Israel Diamond Exchange pending
- The offices of the Israel Diamond Manufacturers Association are on the 20th floor of the Shimshon Building. The telephone is: (972-3) 575-2483.
- The Ministry of Industry and Trade - Diamond Controller's Office: (972-3) 575-575-2105
- The Harry Oppenheimer Diamond Museum www.diamonds.org.il
- Israel Diamond Institute www.diamonds.org.il
Approximately 1,200 diamond companies are located in Ramat Gan in the Israel Diamond Exchange complex. The 4 buildings of the complex, Shimshon, Maccabi, Noam and the Diamond Tower, are located on 2 parallel streets, Jabotinsky and Bezalel, and are connected to one another through a series of internal pedestrian bridges. There is a very high level of security within the buildings, and ID tags must be worn at all times.
Ramat Gan is approximately a 1/2 hour drive (depending on traffic) from the Ben Gurion International Airport, and 10 minutes from Tel Aviv and the beaches on the Mediterranean Sea.
There are 2 Diamond Exchanges in Ramat Gan.
- The Israel Diamond Exchange was first established in the late 1930's (before the founding of the State), as an answer to the need for a safe place to trade diamonds. Prior to this, diamonds were traded in private homes and cafes in the vicinity of Ahad Ha'am Street in Tel Aviv. The Exchange moved to Ramat Gan, in 1968, with the opening of the Shimshon Building. The Maccabi Building was built in the early 1980's, and, in 1993, the Diamond Tower was opened.
- The Israel Precious Stones and Diamond Exchange Ltd., located on the 1st floor of the Maccabi Building, is where traders in emeralds, sapphires, tanzanite, semi-precious stones, and pearls meet. The e-mail is ipsde@azhav.net.il There are a number of emerald polishing plants in the diamond district behind the Bourse.
Russia
The Diamond Chamber of Russia (Russian Diamond Bourse) was established in 1996 by the leaders of the Russian diamond mining and the manufacturing sectors of the industry, and it includes in its membership: diamond mines, diamond cutters, jewelry manufacturers, the Association of Manufacturers of Russia, and the Russian Almaznyi Soyuz, Moscow.
Outside of Moscow, there are 3 branches of the Diamond Chamber: the Yakutsk Branch in Yakutsk, the Baltic Branch in Kaliningrad, and the Ural Branch in Yekaterinburg.
Discussions about the Russian Bourse's application for membership in the WFDB were expected to be heard at this year's World Diamond Congress in Antwerp.
- The Chamber's website is www.diamond-chamber.ru.
Alrosa (Almazy Rossii Sakha) controls the majority of Russia's rough production. As incentive to manufacturers, hopefully more rough will be allocated to the domestic industry in the future.
- The Association of Diamond Manufacturers of Russia Tel:(7-95) 249-8868.
South Africa
There are 2 Diamond Exchanges in Johannesberg.
- The Diamond Club of South Africa e-mail: diam@pixie.co.za
- Diamond Merchants Association of Southern Africa e-mail: jewlcity@smartnet.co.za
South Africa manufactured diamonds with an approximate value of $800 million during the past year. There are a number of sightholders in South Africa who receive rough directly from De Beers at sights held in Johannesberg; and, as a diamond manufacturing center, South Africa is well known for its high quality of polished.
- The Master Diamond Cutter Association of South Africa Tel:(27-11) 334-6216 Johannesberg
United States of America
The New York's Diamond Dealers Club was incorporated in 1931 (with only 12 people signing the agreement) as a central secure place for trading diamonds. World War II was responsible for the expansion of the DDC, because many European dealers moved to the United States. Membership now numbers in the thousands, with members coming from Europe, Japan, India, Israel, Africa, and all parts of the U.S.A. The Club's first 2 locations were in downtown New York, on Nassau Street; and, today, the DDC is located at 580 Fifth Avenue at the corner of 47th Street. The fax is: (212) 869-5511.
Although New York is considered the "gateway" to the entire U.S. market, there are hundreds of offices across the USA and Canada that import diamonds from the major cutting centers. Many diamond manufacturers from abroad also have service offices in Boston, Chicago, Cleveland, Dallas, Houston, Indianapolis, Los Angeles, Miami, Minneapolis, Seattle, and other cities throughout the United States.
There are 2 other Diamond Exchanges in the U.S.A.
- The Diamond Club West Coast is located in the heart of downtown Los Angeles at 550 South Hill St. The fax is: (213) 623-5357. The Club is a trading organization with a personal-based membership (not company) open to manufacturers, retailers, brokers, and dealers in diamonds, precious stones, and fine jewelry.
- The Diamond Club of Florida opened in Miami, in 1992, as a "gateway" to Latin America and South America. Their offices are located at 169 E. Flagler St.; the e-mail is diamondman@prodigy.net
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