Diamonds are bought and sold in the Bourse facility on a regular basis. There are many ways through which buyers and sellers can come together. A buyer could distribute information through the Bourse network that they are seeking particular stones. Sellers could then contact the buyer directly and conduct their business at their respective offices or, if the buyer intends to conduct a meeting with more than one potential seller, they could choose to conduct such meetings at the Bourse facility.
When a consumer thinks of a diamond they would, for the most part, conjure up an image in their mind, of a cut and polished brilliant crystal. However, one should keep in mind that this form of diamond merely represents an end product in a long and complicated value-chain. A chain which sees the rough carbon crystal transformed and fashioned into a beautifully proportioned gem, which has been coveted and admired by millions across the millennia.
In many ways, the trading of polished diamonds, and the provision of service frameworks that support polished-diamond related trading activities, constitute the core economic function of almost all diamond bourses. From this respect, the Diamond Bourse of Canada is no different, and the majority of commercial exchanges that take place in and through the Bourse, ultimately tend to involve various forms of trading in polished diamond goods.
All diamonds start their life in the rough. The rough crystal forms within the depths of the Earth’s crust and must survive a long journey to the upper regions that are accessible to man. This crystal is a miracle of nature and physics, which possesses a unique beauty of its own. Rough diamonds are hard to come by, and they are only mined in a limited number of locations around the globe, such as Africa, Russia, and Canada.
The availability of a supply of rough diamonds constitutes, by far, the primary precondition for the establishment of a successful secondary local diamond industry. Canada’s rising importance in the global rough diamond markets, based on its current position as the world’s third largest producer of diamonds by value, has created a certain expectation, that some of this bounty would be offered for sale, in a local primary market setting. Nonetheless, for a variety of reasons, this hope has yet to be realised.
The Bourse has long sought to establish a solid economic and commercial case for a primary market for rough diamonds here in Canada. To that end, the Bourse will conduct a series of rough diamond tenders in its Toronto facility. These trial tenders, which will be open to local and international buyers, are intended to serve as proof-of-concept events, to demonstrate the economic viability of a Canadian primary market for rough diamonds.