The world of gemstones : Antwerp

The Antwerp diamond exchange

At the end of last century, mainly owing to the discovery of diamond mines in South Africa, Antwerp became centre of the world's diamond trade. Indeed, their production literally dumped on this small town in northern Belgium.

The first diamond exchanges were established in Antwerp. Owing to the use of term "exchange", the neophyte may imagine that the diamond sale rooms look rather the images of thestock exchanges seen on television.

The diamond exchanges however are opposed to this images as they are calm places and there is no speculation on prices.

Any risks are thoroughly controlled and the prices are negotiated depeing on supply and demand is evaluated and discussed fiercely any offer and demand.

Batches of stones are presented to potential customers; the discussion takes place around a table without haste, and focuses on the quality and value of the stones.

You will never hear a raised voice and a certain elegance is de rigueur.

All diamond merchants are required to wear a tie in the exchange. If you forget, you will be loaned one at the door. Telephones are positioned near the tables to allow brokers to contact their offices.

Around 10 am, the rooms start to fill up with brokers, merchants, manufacturers ... In small groups, they talk business and consult the large tables showing the demands from the various offices. While one firm requests goods to replenish its own stock, another has an order to fill for foreign buyers.

At around 12.00, the room is full. Among the chatting brokers, some have bags full of merchandise and are already hurrying to meet their potential customers. Some foreign buyers, allowed into the room, are sat near the large picture windows facing north to take full advantage of the light to exmamine the stones.

The serene atmosphere of the morning gives way to an atmosphere of increased tension. People are grouped around the monitors displaying the latest dollar and foreign currency exchange rates.

About 1.00 pm, lunchtime, the stress suddenly decreases. The afternoon is calmer. Some older diamond merchants gather around a game of chess or cards, while the younger generation continue the hunt for customers and diamonds without relent.

Being a member of an exchange binds the trader to a strict set of rules, with a risk of penalties for those who do not "play the game" correctly. When a member is expelled for misconduct, he is automatically excluded from all the other exchanges. His name and photo, along with the reason for his expulsion, are posted throughout the world.

Another advantage of the diamond exchange is in the security it provides. A network of protection (electronic cameras, security ...) is provided. For this reason the diamond traders often seek to locate their offices near an exchange, or even in the stock exchange building itself, as in addition to the safety equipment, the short distances between the private offices of the Bourse and the underground strong rooms are a very important safety factor for such precious stones.

The stone cutters