In this article I would like to share on how to start a diamond business and not how diamonds are formed. The diamond business did not start 100 years ago, but more than 2,000BC.
By so saying it is an ancient business in the gemstone industry. There are several magazines and websites that tell about “current wealthy people” such as Laurent Graff and Lev Levier who are billionaires. Each one of them has more than US$ 1,000,000,000 (1 billion) from the diamond business. And this is an indicator that diamond business is doing well in the gemstone business, whereby turn many into millionaires.
Please take note or may I say precaution, the diamond business needs a high level of concentration and follow up every step of the way. From exploration, mining, sorting, cutting and polishing until it get to the market. It is not a business you do and become rich over a week, neither it is a business you can do without any knowledge of how from the mine to the market.
Here are the fundamental things to start diamond business
This business requires sufficient money as a capital, this is not a business to try. You can come across a piece of a diamond with 5 carats and each carat is worth of US$ 25,000 which means you will need US$ 125,000 for that one piece of diamond. I can’t tell exactly how much you will need as a capital, but it has to be enough.
This is a tool as a broker or a dealer must have it. It is a small magnifying lens used for diamond grading. It is small and portable. You can carry a loupe in your pocket or wear it on a chain around your neck. And, when used by someone with an experienced eye, a loupe is very accurate. Loupes come in two varieties: hand loupes and eye loupes. Hand loupes are held in one hand for viewing the stone. Eye loupes are either held in the eye socket or attached to eyeglasses. According to international standard, 10X is the standard for diamond grading,
Loupes are available in a variety of magnifications from 4X to 30X. You’ll find many loupes in use in the gem tools stores, where most diamonds are loupe graded. It takes practice to handle and use a loupe effectively. But loupes are efficient: An experienced grader or buyer can use a loupe to work through a large number of stones in a very short time. ”, if you do not know how to use it you better learn before you get ‘’wrong results”.
This is another potent tool you should have, this one will help you distinguish between diamond, stimulant or colored stones. Before having it you must have enough knowledge of how to use it. That is its mode of operation.
This is for sorting diamonds of small sizes, most of the diamonds are small in sizes up to wheat or rice grain size the ones that are less than 2.10mm. If the piece is bigger than 2.10mm it won’t fit in a sieve. What you need to know is how many plates are in a sieve and of what size what makes a “set of sieve”.
You need to have a scale that can weigh the small size of diamonds. Most of the diamonds come from under gram so you need to have carat scale. Secondly, your scale must be the “Legal for Trade” use.
You need to test your diamonds especially for reputed labs. Also you may have your own private or in house gemologist for testing job
This is a regulation formed in 2003, which shows how diamond transfer from one nation to another. This certificate shows the movement of diamonds and do not support” civil conflicts or terrorism”. It is important when you are in diamond business to know how this regulation operates.
I will not advise you to enter into diamond business without having adequate knowledge on diamonds, this will help you to avoid losses. Not every gemstone that comes from Shinyanga is a diamond, even white zircon looks like diamond. There are many institutes that teach about diamonds across the world, such as
Gemological Institute of America (GIA) – USA www.gia.edu
The Gem and Jewelry Institute of Thailand - Thailand www.git.or.th
Lapidary Training Centre- Tanzania- www.noreen.ch
Getting knowledge is very crucial and there is no shortcut on it. Don’t say “I have an idea” or “I have a capital” you must have enough knowledge even if you are planning to hire someone to do the job for you otherwise you will be easily deceived.
This is a document containing diamond details, which consists of size, color, number of stones, clarity details and total carats of a whole or all diamonds. Even though it does not a particular flow, but it has enough details about diamonds.
You must know what mode of transportation to move your diamonds from one nation to another. Diamonds need more security otherwise it will or may not reach its destination. There are some companies that transport diamonds such as Brinks, Malca, Amit and others.
Where are the diamond markets?
You must know where the big markets of diamonds are located, in some countries like Israel Belgium, Hong Kong, USA or Thailand, there are big diamond markets. What is required is for you to know their locations, contact person, how to get the diamonds to the market in a safety environment.