How profits are made in Indian Diamond market ?

Assortment of diamond'sDiamond Industry is full of winners and loosers. People who do right thing at correct time make lot of profits. There are companies who are struggling to survive and there are companies which make profit like a flowing river. Some of the ways people make money in markets are:

Rough Adat

Bringing a seller & potential buyer together and enable successful deal – this job is done every single day by Adat. There are Adat who specialize in rough diamond lot. For every single deal they make 1-2% commission from seller. Interestingly rough Adat is seen only in Indian diamond markets like Surat & Mumbai.

Polish Adat

Is similar to rough Adat, but deals are done in Polished diamonds. Polish Adat is popular business done by people in diamond markets all over world.

Dalali (Brokerage)

Inside market there are expert diamond traders who enable transaction of diamonds between seller & potential buyers. These deals are done within same market. A smart Dalal makes lot of profit by buying right diamonds for good price and then handover stock to a potential buyer within market for higher price.

Trading

Trading is like short term stock market buying & selling. A smart trader buys a good diamonds and builds an inventory and sells them later for profit. This act involves risk but if done correctly gives lot of profit.

Rough to Polish & selling

Companies like Geetanjali process diamond through whole life cycle. They get rough diamonds from companies like DBeers, manufacture rough to polish diamonds, loose diamonds are sold in market, some stock is used in diamond studded jewelry and sold directly to end user. Such companies are well established and are big time players in terms of Diamond market economics.

Diamond re-cutting

Organizations buy solitaire diamonds, use their skills to re-cut stone in such way that its preciousness increases. They also buy broken diamonds which are of comparatively less price, use their skills on it to make them more valuable by re-cutting.

Diamond Powder

Like any other good business, diamond industry tries to make profit as much as possible. Diamond powder which remains after all manufacturing activities is sold for a price. This is used in medicine, tools, blades, saran(saifer), airport runways etc.

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