A study of the need for a diamond exchange

Abstract

The approach towards the creation of a diamond exchange has been in the pipeline for decades. In this study, the researcher will analyse whether there is the need for this particular type of exchange to be conceived. Consequently, he will also highlight the approaches made towards this concept, with examples from different parts of the World. Moreover, the benefits that the concept brings with it will also be discussed, such as; price transparency, price discovery, standardization and others. All of which were never present before in the diamond market (except for the SDiX). Moreover, challenges that are faced by the inception of this idea will also be mentioned. Furthermore, the ‘Methodology’ chapter of this dissertation will consist of a qualitative approach, in which face-to-face interviews were carried out in conjunction with several major financial institutions. The questions were almost all of a close-ended nature, however one open-ended question was also included. Nonetheless, this is not the only method that the researcher has employed in this study. The other approach is the secondary data collection process which consisted of collecting information through articles, case studies and other literature that was available online. Concerning this study, it resulted that there is a high percentage of participants that believe that there is a need for a diamond exchange and that the latter does bring fundamental advantages if present in the current markets. Moreover, some of the challenges that are noted in the ‘Literature Review’ have proven to be susceptible to solutions. These have been mentioned accordingly in the Chapter 4 of this dissertation. Lastly, the researcher concludes at the final stages that firstly, the research question that was stipulated in Chapter 1 has been answered and secondly, the hypotheses that were stipulated in this chapter, have been proven to be correct. These imply that there is indeed a need for a diamond exchange to be created since this innovative concept brings a lot of benefits that are deemed to be of a fruitful nature.