< BACK TO THE DIAMOND BLOG MAIN PAGE
28
August 2018

Like? Share!

Rough Planning and the Retail Diamond Market: A Changing Relationship

Every rough diamond contains a world of possibilities. There are many ways that a rough diamond can be cut and polished to create saleable, profitable diamonds. Over the past few decades, there has been a revolution in the way that rough diamonds are planned, due to the development of optics technologies that provide accurate internal and external scans of rough diamonds, and advanced software that can create cutting plans at a pace and accuracy that could never be achieved manually.

For diamond manufacturers, these technologies have been a game changer. Today, manufacturers can maximize the polished yield from rough diamonds, based on a range of criteria, such as size, shape and monetary value. However, with the advent of more sophisticated planning technologies, and with an even more demanding and discerning consumer base, the process of rough planning is once again undergoing sweeping change.

Diamond manufacturers can now purchase rough diamonds specially matched to polished diamond requests from retailers. These requests are based, in turn, on the demands of the current market. This back-to-front process is far more focused, enabling a more efficient pipeline that is geared towards actual market demands. Plus, the entire pipeline is able to respond faster, almost in real time, to changing trends.

 

How Are Rough Diamonds Purchased?

There are two main ways that rough purchasing is conducted:

Tenders: There are several diamond mining companies that hold ‘tenders’ mainly for large diamonds. A tender is a process in which diamond buyers have an opportunity to see a diamond, scan it on a mobile system such as DiaMobile® XL, conduct initial planning using Advisor® rough planning software to help estimate the diamond’s value, and with this information, make a price offer (or bid) for the diamond.

Sightholders: With this method, a sightholder receives a sealed box of rough diamonds for bulk purchase. The advantage of this method is a stable, robust supply during the whole year, while the disadvantage is that some of the rough diamonds in the bulk package will not exactly meet the needs of the diamond manufacturer, and therefore will not be optimally utilized.

 

A New Way: Lucara Diamond Corp and the Clara Rough Diamonds Trading Platform

Clara, which is a subsidiary of Lucara Diamond Corp, the Canadian mining company, has developed a digital platform, secured by blockchain technology, that enables manufacturers to purchase rough diamonds to precisely fit their polished diamonds’ sales needs. With the help of the Clara system, they can optimally manufacture polished diamonds according to the orders received from their customers.

First, a manufacturer defines the technical requirements of their polished diamonds, such as shape, type, color, clarity and cut grade, based on actual orders they have from their customers. Then, they receive a price list of rough diamonds that best match these pre-defined needs.  This benefits all parties in the transaction: producers can sell the rough at an optimized price, and manufacturers can buy quickly and accurately, and increase their profit. Retailers receive the polished diamonds their customers are asking for.

 

The Technology Behind the Rough Sales Revolution

Clara’s platform records the mine origin of the rough diamond before it is sold. Then, Sarine’s Galaxy® inclusion mapping technology and Advisor® rough planning are applied to the rough diamond to generate possible cutting and polishing solutions, according to orders for polished diamonds submitted by the manufacturer’s retail customers.

In addition, the Clara platform is based on blockchain that enables secure, verified provenance and tracking of the diamonds throughout their processing.

 

In times gone by, diamond manufacturers produced the polished diamonds that were possible from the rough stone, while endeavoring to maximize profit and meet current demands of the market. The diamonds produced comprised the supply available to diamond retailers.

Technology and consumer demand has turned this process on its head. Now, with advanced planning and trading technologies, diamond retailers can drive a more effective manufacturing process, directed by the needs of consumers, and to the benefit of the entire industry.

 

Subscribe to the Diamond Blog

Get the latest technology, grading and retail news straight from the source, straight to your inbox.


MORE FROM THE DIAMOND BLOG

6 Ecommerce Blogs Every Jeweler Should Follow

If you are new to the online retailing scene, then getting your ecommerce jewelry business ahead can involve a lot of dedication, time, and work. Trying to figure out what is best for your ecommerce dream, searching online for the answers, or paying out excessive amounts of cash to professionals may not the ideal path […]

SPECTRUM – Diamond Industry News #25

Not a month goes by without diamond industry news that involves the new trend of lab grown diamonds. In this month’s SPECTRUM, read an original take on De Beers’ move to lab grown, in an article featured on Quartzy. We’re also going big on the bling with a tweet from CNN about the world’s most […]

World Famous Jewelers Series Part 4: Boucheron

The Jeweler of Place Vendôme: How Frédéric Boucheron Got His Start Frédéric Boucheron always knew he wanted to be a jeweler. He was born in 1830 to a family of French clothiers, and at a young age he apprenticed himself under jeweler Jules Chaise. By the age of 14, he had completed his apprenticeship and […]

Which Diamond Shape Are You?

Diamonds come in all sizes – and a wide variety of shapes. Although each diamond is unique, different personality types are drawn to particular diamond shapes. In fact, the diamond shape you choose may be a strong reflection of the type of person you are. Which diamond shape is right for you? Read on to […]

Why (and How) to Use #Hashtags for Your Jewelry Business

By now, you’ve seen thousands of  #hashtags hanging around on social media. They have certainly changed their meaning from the sign we are used to seeing at the beginning of a telephone number. When used correctly, jewelry hashtags can really make a difference to the social media marketing for your diamonds and jewelry business. But […]

Why Do Diamonds Sparkle?

If there is one word that everyone associates with diamonds, it is “sparkle.” The bright, sparkling appearance of diamonds is part of what makes them such a highly sought-after prize. Diamonds have been variously described as “sparkling”, “shining” and “flashing”. A sparkling diamond can be thought of as beautiful, or “bling-y”, yet if the diamond […]

World Famous Jewelers Series Part 3: Faberge

The Man Who Created The Egg In 1885,   Tsar Alexander III commissioned Faberge to create an Easter egg as a gift for his wife, Empress Maria Fedorovna. With this simple gift, the Faberge Imperial Egg Collection was born. The first egg was called the Hen Egg. Inside a white enameled shell rested a solid gold […]

Sarine Loupe™ Launches New Diamond Imaging View Modes

A diamond is laden with emotional and economic significance, yet more than anything else, it is a visual experience. A diamond’s beauty is not just symbolic – it is very real. It is a result of the diamond’s individual 4Cs features, as well as the way it interacts with light – its ‘light performance’. It […]

SPECTRUM – Diamond Industry News #24

This edition of Spectrum diamond news and trends is a fascinating roundup that takes us deep into the debate about lab grown and mined diamonds, then 750 kilometers beneath the earth to where blue diamonds form. From there we travel into the minds of millennial consumers, with a recent study about their jewelry buying habits. […]

World Famous Jewelers Series Part 2: Tiffany & Co

The name Tiffany & Co. evokes thoughts of little blue boxes, glass lamp shades, and for those who know, the Super Bowl’s Vince Lombardi Trophy. The store is famous for its Tiffany setting engagement rings, chain bracelets with an engraved heart charm, and delicate pendant necklaces. Where did this legacy start? Who is the man […]