When the Diamond Trading Company (DTC) purchases diamonds from its producer partners, a negotiation process takes place.
Both the DTC and the producing country government are represented by diamond sorting experts to ensure fairness.
Before the negotiation process begins, the rough diamonds are sorted into categories depending on their size, shape, colour and quality. Both the DTC and government representatives must then agree on how the diamonds have been categorised.
If either party believes a diamond belongs in a different category, they must justify this by reference to a master diamond sample, which is a selection of example diamonds showing the upper and lower limits for each category previously agreed by both parties.
Each of the categories corresponds to a price in a DTC price book. Once there is agreement on categorisation, the negotiation is complete.
When the diamonds are bought by the DTC the producer then pays a percentage of the overall value of the diamonds to the DTC. This supports the effective sorting of the diamonds, their sale through a secure and sustainable channel, and the further growth of the diamond market.
The DTC uses the same price book to buy and sell diamonds to its clients.