dealers of New York (and, before the war started in 1939, of Antwerp, Amsterdam, Paris, Berlin, and other centers).
The
Trading Company today, as then, insists upon keeping a large stock of
diamonds in reserve, since it must be prepared for occasions when the
pipe mines can make no profit and must be closed down. It also is thus
able to sell many or few stocks when and if it wishes. Until the war,
at least, it maintained a minimum reserve of about $10,000,000. When
part of that was depleted, the mines turned out more; it was not
allowed at any time to fall below that figure.
This
Trading Company sells all diamonds for which the corporation holds
contracts. There are only a few cutters who deal directly with them.
Most of the dealing is done through a group of London brokers whose
honesty and integrity have been ascertained to the Trading Company's satisfaction.
When a shipment of diamonds has come in from South Africa, a broker is
notified. He then makes application for a "sight" of theparcels to be
placed on display. If the Trading Company decides to grant his
application, he is invited to the "sight." "Sights" are held
irregularly, some times every two or three weeks, sometimes after an
interval of many weeks.
The
goods, the broker finds, are placed on a table before a north light—you
can judge diamonds best by the north light and preferably in the
morning. There are no arguments. The parcels are made up hy the Trading
Company to suit their own purposes. The broker looks into a parcel, may
decide he likes certain stones in it, doesn't care about the others.
But it he wants those stones he must buy the whole parcel. What he does
with the stones he doesn't like is his problem. He usually sells them
to other brokers or cutters
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