The israeli diamond industry

The world diamond industry and the Israeli diamond industry for that matter has its beginnings in the fifteenth century, when a Jewish diamond cutter Lodewyk van Berken from Belgium invented the scaif.

The world diamond industry and the Israeli diamond industry for that matter has its beginnings in the fifteenth century, when a Jewish diamond cutter Lodewyk van Berken from Belgium invented the scaif.

A polishing wheel infused with a mixture of olive oil and diamond dust, made it possible to polish all the facets of the diamond symmetrically and at angles that reflected light best giving diamonds their sparkle. The scaif revolutionized the diamond cutting industry and correspondingly, the popularity of diamonds in the world and diamond cutting became one of the traditional Jewish crafts in Europe.

Belgium, and more precisely Antwerp, has been the world’s center of diamond trade for a majority the past 500 years led by Antwerp’s Hasidim diamantairs. Diamond cutting in Antwerp started in the 16th century, when masses of Jews who were expelled from Spain and Portugal settled in Belgium, bringing with them, knowledge of the diamond trade. By the mid 19th century, the diamond trade in Belgium had expanded rapidly and by 1940, up to 80% of Antwerp’s Jews were involved in the diamond trade and with the discovery of the Kimberly diamond fields in South Africa in 1871 and the influx of new raw diamonds into the market, Antwerp was able to maintain its role as world leader in the production and distribution in the diamond market after the difficulties of World War II.

The Kimberley diamond fields, and later discoveries in Gauteng, the Free State, and along the Atlantic coast, emerged as major sources of gem-quality diamonds for Belgium and the world and also saw the emergence of the diamond giant DeBeers Mining. The South African De Beers Mining company was set up by Cecil John Rhodes and started mining diamonds with its founding in 1888. The company quickly became the world’s leading diamond producer in the twentieth century and is even to this day a dominating force in the diamond industry of South Africa and the world. Controlling roughly 40% of worlds supply of diamonds and accounts for 80% of the worlds diamond sales.

The Israeli diamond industry was born soon after in 1937; moments before World War II broke out Jewish diamond polishers and cutters in Europe were forced to flee countries like Belgium, and those who arrived in Israel established the first Israeli diamond polishing plant in Petah Tikva, bringing with them their knowledge and expertise they had gained over generations in the diamond industry and while European diamond industries halted their operations during World War II, the Israeli diamond industry continued to operate at full capacity during this time.

In the 1950s, Israel was immersed in construction and growth, and the diamond industry was no different; by 1959, the Israeli diamond industry had grown larger than ever before. With the support of a modern democratic state, the Israeli diamond industry was able to endure many crises, including Israel’s wars with its neighboring countries and global and local recessions and political and cultural changes.

In 1968, The Israel Diamond Exchange inaugurated the Shimshon Building– a 24 stories high tower that was designed to serve the industry’s many needs. Until this day, it is still considered one of the most advanced diamond bourses in the world.
With the entry of the second and third generation of Israeli diamantaires into their family businesses, manufacturing and marketing methods have become more sophisticated, but the essence of the industry has remained the same for the past 70 years: a high level of professional expertise, combined with originality, creativity and ability to adapt to changing conditions, maintaining Israel as a leader in the world diamond industry.
Our firm’s diamond department provides professional services to all our established clients within the diamond industry; and to prospective clients entering into this exciting field we offer our expert assistance, from completing all the regulatory requirements in setting up your company, to taxation and secretarial services under the supervision of our company director Dov Weinstein CPA (Isr).

Dov Weinstein & Co. C.P.A. (Isr)
Diamond Department