Beginning from the late Nineteen thirties and through to the 1990s, the actual stones present in much of the earth's diamond jewelry were manufactured...
Beginning from the late Nineteen thirties and through to the 1990s,
the actual stones present in much of the earth's diamond jewelry were manufactured in Israel, in particular within the city of Ramat Gan. Nevertheless despite this custom, today most of the production of refined diamonds has moved to other countries such as China, Russia, Vietnam, some African regions and in particular to India.
The Rise And Also Fall Of The Israeli Diamond Industry
According to Udi Sheintal, managing director of the Israel Diamond Manufacturers Association, the fall of the Israeli diamond sector came about as a result of a globalisation of the production process. These days, where the production happens is determined by business factors for example where the cheapest labour costs as well as raw materials can be found.
This really is nothing new because the industry that produces everything from glass cutters to diamond engagement rings has shifted before the same reasons. Once, New York was the sectors capital, after that cheap labour saw it proceed to Belgium, Israel and now other places, specifically to India.
Israel's polishing business took off during the 1930s whenever Jews emigrated from Belgium, taking knowledge of the industry with them when they moved to Palestine under the British mandate. In spite of less appeal of luxury items such as diamond jewellery in the war yrs, the industry noticed rapid growth. In 1939, less than 200 individuals worked in it in the region however by 1942, thirty three factories employed about 3,750 workers. By the 1980s, around 30,000 skilled workers were employed in the business nevertheless today, it should be less than 1000.
These days, Israel has seen a shift from being much more of a trading country, instead of a production one. Right now much of the diamond jewellery such as earrings, bracelets and diamond engagement rings are manufactured from stones which are polished somewhere else and imported in to the nation.
The Indian Diamond Business
Nowadays, India has the largest cut and polished diamond industry on the planet with around one million employees. It provides 60% around the globe's supply in value terms and 85% of the volume of the stones used worldwide. A whopping eleven out of 12 units of diamond jewellery in the world are made on the sub-continent and in 2010, they released 23.3 billion US dollars' worth.
Probably the major reason for their accomplishment is the very low labour expenses in the country, based on India's Gem & Jewellery Export Promotion Council (GJEPC). They spend a mere $10 per carat on the production of their stones, while in China they invest $17, South Africa it is $40 and in America it is actually $60.
Another key factor is that in Surat, where there is a substantial concentration of the market, there is a large business spirit that drives the market forward. It's also experienced huge monetary support from the government, particularly in the global recession, which has allowed the industry to at least partly recover when other sectors are struggling.
