Supplying diamonds to the Australian jewellery market
Diamonds have been highly sought after for centuries for their appeal and adamantine properties. Whether used as an industrial cutting tool or set into a tiara, the demand continues to grow.
In the Kimberley region of Western Australia there are diamond mines which yield some rare yellow and pink coloured gems. One of the mines is set for closure though, so reliance extends to supply from diamond mines overseas.
The main diamond trading centres are New York, Antwerp and London. Pricing is set by De Beers. Grading standards are largely controlled by the US. The most prominent colour and clarity grading scales, for example, are from The Gemmological Institute of America, GIA, The American Gem Society, AGS, and The World Jewellery Confederation, CIBJO.
In more recent times the World Federation of Diamond bourses have endorsed the ISO definitions of a diamond as a natural stone to distinguish from laboratory grown gems.
When you've got to grips with the Diamond market and what to look for, an import business needs to understand Australia's import regulations, taxes and managing currency risk.
Our Sydney client, Lester Brand, enthusiastically shares his knowledge of 30 years plus, He is primarily a manufacturing jeweller but also specialises in supplying polished diamonds to some of Australia and New Zealand's leading jewellers. He started his business from scratch and is now one of the leaders of his field in Australasia.
With the cost of goods being so high and the margin on loose diamonds relatively slim, our client has utilised our cash flow solution which enables its debtor book to be released as the business needs. This helps with ongoing operational expenses.
The loose diamond market is a challenging one and moves rapidly. To secure the sale of a diamond, payment is often required in advance however the retail client may require longer payment terms. Our flexible Trade Finance solution enhances Lester Brand’s existing Debtor Finance facility and bridges the funding gap from paying his importers and getting paid by his customers. Their trade finance began with small transactions between $10 & 20k over short 7 day terms.
Lester, our client says "As well as easing financial pressure, I feel both my Debtor and Trade Finance Solutions provide me with the foundation to confidently push for growth. With the desire for more bespoke quality jewellery in the Australian market, I think Classic Funding Group's solution are supporting my business ambitions"