Israel: Diamond Investors Take Note


"Israel's exports of rough diamonds in Q111 totaled $1.158 billion."

diamond investing Serious diamond investors, or those who plan to be, should direct their radars to Israel, a country often omitted from the lists of nations important to the industry.

"The diamond business is such that you can't get into it without dealing with Jews and Israelis," Author and Journalist Jim Krane said.

Figures released Sunday by Israel's Ministry of Trade, Industry and Labor appear to back that statement up with cash. Israel's exports of rough diamonds in Q111 totaled $1.158 billion and exports for polished diamonds totaled $2.123B. Compare that to last year's totals during the same period, when rough diamond exports were only $916M and polished stone exports totaled $1.234B, and Avi Paz, president of the Israel Diamond Exchange (IDE), is justified in saying that there is no doubt the numbers show recovery.

Israeli Diamonds for the Investor

Israel's role in the diamond industry isn't due to its possession of vast underground reserves. On the contrary, this Middle Eastern state is a sieve; it acts as an international diamond sifter. Israel imports diamonds before examining, sorting, cutting and distributing the stones to world markets. The U.S. is the leading destination, importing nearly one-half of what Israel offers; a further 26% of this year's stock has flowed to Hong Kong.

Diversify your portfolio takes on real meaning when considering Israeli diamond investments. The industry is largely composed of private, highly successful family businesses that are passed from generation to generation.

According to the IDE, diamonds are available however an investor likes them—every type, size, shape and quality. The IDE claims to have the largest diamond-trading floor and the most-advanced polishing capabilities in the world. Whereas other countries' diamantaires mainly polish small stones, Israel does it all, including specializing in polishing medium and large stones.

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