One of these places was Israel, where a new nation was being formed. The need for talent, entrepreneurial spirit and qualifications was the source of the vital force of a developing economy that is striving to enter the world arena.
Arrival of diamonds in Tel Aviv
Diamond traders in Amsterdam and Antwerp began to leave for Tel Aviv in the 1930s, as anti-Semitism spread throughout Europe. They created small, unofficial diamond trade zones in Tel Aviv, where they ran from small offices and cafes in the area of this city called Akhuzat Bayt.
By 1937, after the British Mandate authorities abolished the tax on the import of diamonds, the industry began to gain momentum. Local traders have united to create the first diamond exchange of Israel, the Palestinian Diamond Club (Palestine Diamond Club). The first production of diamonds began in the country that year with small stones in Petah Tikva. Very quickly, two more diamond production centers began to develop in the coastal city of Netanya and in Tel Aviv.
But only after the outbreak of World War II, the local industry was able to significant growth. They began to fill the void left by the diamond and diamond industry in Europe, which fell victim to this war. In the late 1940s, diamond traders and cutters who survived the war immigrated to Israel, giving the country an additional impetus with an influx of skilled workers and experienced traders.
The birth of the diamond exchange
Gradually, they were able to receive more diamonds, prove their capabilities and, finally, convince De Beers to supply diamonds to them on a regular basis. In the mid-1960s, after many negotiations and unsuccessful attempts to build a diamond exchange building in Tel Aviv, the Mayor of Ramat Gan allocated a large site for the building of the first diamond exchange, Shimshon.
It was a revolutionary approach. The decision to combine all that is needed in one building, led in a few years to the establishment of the Israeli Diamond Exchange (Israeli Diamond Exchange). One building has become a complex of interconnected buildings offering everything from offices that supply diamonds, banks and freighters to restaurants, a synagogue and even a hairdresser, all of which serve over 1,000 offices dealing with diamonds and diamonds in a closed and secure environment. Since it was a rapidly growing diamond center, production facilities quickly appeared around it, and this place turned into a thriving diamond and diamond trading center and a diamond manufacturing hub.
By the 1970s, having a large and modern diamond exchange, possessing a deep knowledge in the field of cutting large and special diamonds, and also ordinary stones, having experience with precious stones of fantasy forms, Israel acquired a key role in the global trade in diamonds. Soon he replaced Belgium as the world's largest exporter of diamonds.
Israel is gaining experience
Israel has built a reputation for itself through high-quality cutting of stones and great specialization in different places. For example, in Netanya, diamond manufacturers have gained extensive experience in working with diamonds of fantasy shapes. Local diamond producers have become known for their high quality work and the ability to maximize the use of diamond to increase the yield of finished products.
The second most popular cut "princess" was developed in 1979 in Israel as a result of the improvement of several other square shapes of the diamond. Very quickly, this form of cutting became extremely popular in the world - and with good reason.
The three princess cutters, Yigal Perlman, Betzalel Ambar and Israel Itzkowitz, sought to create a diamond that was both beautiful and economical. As a result, a brilliant diamond with a high gloss and a high yield was obtained. The combination of these two characteristics has made this form very popular, especially in the United States.
Innovative spirit
One of the secrets of the success of the Israeli diamond center is a large investment in research and development. Given the name "Startup Nation" (Startup Nation), the Israeli high-tech industry and its numerous engineers have developed new technologies that have improved the production of diamonds. With the help of these funds, the Israeli industry was able to increase efficiency and reduce costs for the production of diamonds.
Among these means - robotics, means of identification and planning of diamonds, as well as technical means of detection. In a few years, these technologies have become popular items of Israeli exports to other diamond centers.
One of the greatest opportunities for Israel is the production of large, expensive diamonds. Such products, requiring very careful planning and exceptionally high craftsmanship, are sent to Israel from around the world for cutting and polishing by local cutting craftsmen.
Many of the largest companies started small. Cutters and polishers who started production on their own could, with some entrepreneurial spirit, organize work at a higher level and gradually accumulate enough capital to independently purchase diamonds, eventually becoming a manufacturer of diamonds.
Israel's current branch
In the past few years, it has become more difficult for small cutters and polishers to make such transformations because of rising costs of producing diamonds and lowering margins. At present, there are no production facilities in Petach Tikva and Netanya. Many of the lapidary enterprises in this place near the stock exchange have also closed, since the production of diamonds has moved to countries with lower labor costs, for example, to India and China.
Despite the decline in diamond production in the country, Israeli diamond and diamond companies are among the largest in the world. Now large global players - Israelis own cutting enterprises in countries such as Botswana, Thailand, etc.
The Israeli industry has attempted to maintain its global position in the last few years. This includes increasing bank financing and continuing to strengthen the base of scientific and technological development. A faceting and polishing factory was recently opened with the goal of preserving know-how and reducing costs, which would allow Israeli companies to cut and polish their stones at this factory at a lower cost.
http://www.ehudlaniado.com/home/index.php/news/entry/how-israel-became-the-world-s-largest-polished-exporter
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