The Challenges of The Rough Diamond Industry

Sellers and Buyers of Rough Diamond can often agree when negotiating a parcel of rough stones, that usually is the easy part, so what is the hard part?

The overwhelming majority of miners, located mostly on the African continent are mining rough diamonds and have stock piled these rough diamonds over the last few years, so lots of miners have stones, some nicer than others.

The issues are several folds, first, most miners have smaller productions in small villages, and do not know how to go about exporting to a foreign rough buyer, nor do they know any foreign rough buyers most of the time.

The second issue is that they do not have the cash flow to pay for the KPC’s all transport costs, tickets, hotels etc etc, so they can only sell the stones on an FOB basis and will not sell CIF.

The large wholesale buyers will tell you they have been around for too long to go and buy stones FOB, most of them will only purchase on a CIF basis in one of the major diamond hubs such as New York, Antwerp, Dubai, Geneva, Tel Aviv, Numbai or Hong Kong.