Tel Aviv - Diamond Exchange

Israel's Diamond Exchange Center, one of the earliest skyscrapers built in Israel.

Tel Aviv boasts the largest diamond exchange in the world.  While diamonds are not mined in Israel, they are traded and cut here.  I was part of a special tour that was part of Steven's scientific conference at Bar Ilan University.  As a spouse of a speaker at the conference, I got to tag along.  Entering the exchange was like entering a bank vault at the airport.  They took our identifications (my passport) and kept them for the duration of the tour.  An Israeli guard who looks like a football player inspected my bags.  I walked through a metal detector.  Our guide joked it was more secure than the Mossad.  Why all this security?  Because there are millions of dollars of diamonds in the exchange, which spans four buildings.

The buildings are all connected and form a miniature city.  Everything you could want, including a doctor, store, restaurants and a synagogue, are within the exchange.  Once you enter, you don't need to leave until the end of the day.  Does that seem a little claustrophobic?  Well, the main trading floor is at least light filled, with floor-to-ceiling windows.  Within are rows of sturdy desks and wooden chairs.  Here diamonds are weighed and traded.  Million dollar transactions are concluded with just the shake of a hand.  If you welch on your deal, your face is plastered on the "wall of shame" and within minutes word goes out to all the diamond exchanges,  and no one will do business with you.  Only members of the exchange can do business here.  This is also a man's business.  Of the approximately 2,000 members only a few hundred are women.

The Israelis have developed sophisticated software and machines that x-ray each uncut diamond, and then model the best cut for each diamond.  Once marked, the diamond is cut by machine. Nothing is cut by hand anymore.  The latest cutting technology now uses water.

After we retrieved our passports and left the building, we were shown to the Caprice showroom. A delightful Chinese lady, who spoke German, Hebrew and English, showed us several large diamonds, explaining cut and clarity and karets. These gorgeous diamonds were $10,000 to $36,000 each!  Even substracting their discount and the refund of the VAT tax, we decided to pass.  While these diamonds are a bargain compared to Tiffany's, they were a tad above our price point.