Introduction: Why Rough-Diamond Sales Changed Forever
In the latest Rapaport Diamond Podcast, Adam Schulman, founder and CEO of Koin International, explained how tenders and auctions reshaped rough-diamond sales. Before tenders became common, miners relied on informal, over-the-table deals. As a result, prices often stayed flat and buyers controlled the market.
During the conversation with Joshua Freedman, Schulman shared how competition improved transparency and why miners now prefer tenders. Because of these changes, auctions and tenders dominate the global trade today.
From Private Bags to Transparent Tenders
For decades, dealers bought rough diamonds in closed rooms, carrying bags of stones and making quick offers. While this approach worked for some, it lacked transparency. Therefore, Schulman saw a gap in the system.
- 2005: He co-founded Fusion Alternatives with I. Hennig. Since it was the first independent tender platform, it allowed small and mid-sized miners to reach more buyers.
- 2015: He launched Koin International to expand the model. After its success, tenders became the preferred sales method.
- Today, over 70% of rough diamonds are sold via tenders or auctions.
At the same time, De Beers and Alrosa continued their sight system. Yet miners shifted toward tenders because they could secure stronger competition and higher prices.
Learn more: How Diamond Auctions Work.
Q&A with Adam Schulman
Q: Why did tenders change the market?
A: Before tenders, miners often had no choice but to accept fixed offers. After tenders gained traction, they attracted hundreds of buyers and achieved 10–15% higher prices.
Q: Why did Koin relocate from Antwerp to Dubai?
A: “During Covid-19, Antwerp became difficult for global access. Meanwhile, Dubai offered lower tax, better logistics, and faster growth,” Schulman explained.
Q: Are tenders the new standard?
A: “Yes. Over time, tenders proved more transparent and competitive, so miners prefer them.”
The Business Impact of Tenders
Because miners wanted fair pricing, tenders delivered results. For example:
- In early Koin tenders, small miners gained 20% more revenue compared to direct deals.
- Dubai now accounts for 40% of global rough-diamond trade, proving its rise as a key hub.
- Koin hosts more than 20 tenders each year, drawing buyers from India, Belgium, Israel, and the UAE.
See also: Why Dubai Became a Diamond Hub.
Adam Schulman Beyond Diamonds
After years of building Koin, Schulman still finds time for his passion: photography. While leading diamond tenders, he also captures wildlife across deserts and safaris. His work appears on Instagram at @adam_s_photography.
For inspiration, explore Gemstone-Inspired Photography.
Adam Schulman, CEO of Koin International, joined the Rapaport Podcast to explain how tenders and auctions changed rough-diamond sales. From Antwerp to Dubai, the shift introduced transparency, competition, and better prices for miners. Today, auctions dominate because they bring more buyers and fairer results.
Suggested Reading:
Guide to Diamond Market Trends
History of Rough-Diamond Trading
This comprehensive gemology FAQ covers everything about studies, specializations, careers, and tools in the field. Whether you’re considering gemology education or exploring career opportunities, this guide answers the most frequently asked questions about becoming a professional gemologist.
1. What is Gemology?
Gemology is comprehensively defined as the scientific study of gemstones. This fascinating field encompasses their intricate identification, precise grading, geographical origins, various treatments, and ultimate valuation. Through dedicated study, individuals learn to meticulously differentiate between natural, synthetic, and imitation stones.
2. Why Should You Study Gemology?
Studying gemology offers a wealth of professional advantages. Crucially, you will acquire essential skills applicable across diverse sectors such as jewelry retail, prestigious auction houses, and specialized laboratories. Furthermore, this expertise empowers you to advise clients with unparalleled authority, thereby fostering trust. Ultimately, a strong gemological foundation serves as a vital safeguard against potential fraud, protecting both yourself and your clientele.
3. Main Areas of Specialization in Gemology
The field of gemology branches into several distinct and vital specializations, allowing for focused expertise.
Diamond Grading
One prominent area is diamond grading, where the focus meticulously centers on the renowned 4Cs: cut, color, clarity, and carat weight. Here, students become adept at understanding the rigorous grading systems employed by leading laboratories, such as the Gemological Institute of America (GIA).
Colored Gemstones
Another significant specialization involves colored gemstones. This area demands extensive study of iconic gems like rubies, sapphires, and emeralds, alongside hundreds of other vibrant stones. Critically, understanding how geographical origins profoundly influence a gem’s ultimate value is a core component.
Pearls
The study of pearls constitutes another specialized path. Students learn to distinguish between natural, cultured, freshwater, and saltwater pearls, each with unique characteristics. Consequently, comprehending how nacre quality directly impacts a pearl’s market price becomes paramount.
Gem Treatments
Detecting gem treatments is a highly technical specialization. This involves identifying various enhancements such as heat, irradiation, oiling, and fracture filling. Moreover, recognizing how these treatments significantly impact a gem’s market value is a crucial skill for any gemologist.
Synthetic and Lab-Grown Stones
The specialization in synthetic and lab-grown stones focuses on differentiating these from their natural counterparts. Therefore, learning to spot subtle indicators like specific growth patterns or distinctive inclusions is essential for accurate identification.
Gem Trade and Valuation
Finally, gem trade and valuation represent a specialization focused on the commercial aspects. Here, students delve into pricing strategies relevant to both local and global markets. Additionally, studying how demand fluctuates over time provides critical insights into market dynamics.
4. Courses and Qualifications That Matter
Pursuing formal education is key to a successful gemological career, with several qualifications holding significant weight.
Global Diplomas
Globally recognized diplomas are particularly impactful. The GIA Graduate Gemologist (GG) certification is highly esteemed, as is the FGA (Fellow of the Gemmological Association of Great Britain).
Advanced Lab Certifications
For those aiming for high-level laboratory work, advanced certifications from institutions like SSEF, Gübelin, and HRD are invaluable. These courses provide specialized, in-depth knowledge crucial for cutting-edge analysis.
Local Courses
While local courses can be helpful for beginners to gain foundational knowledge, it is generally understood that global diplomas carry considerably more professional weight and recognition within the industry.
5. Duration of Gemological Studies
The commitment required for gemological studies varies significantly depending on the chosen program. Short courses, for instance, might only last a few weeks, offering a quick introduction. Conversely, comprehensive diploma programs typically extend from six months to two years, providing in-depth training. Specific modules, such as those focused solely on diamond or pearl grading, can often be completed within a matter of weeks, allowing for targeted skill development.
6. Tools You Will Learn to Use
Mastering specialized tools is fundamental to effective gemological practice. Among these, the microscope is indispensable for meticulously examining inclusions, which act as fingerprints of a gem’s formation. Similarly, a refractometer accurately measures the refractive index, a key optical property aiding identification. A polariscope helps determine a gem’s optic character, revealing its internal crystal structure. Furthermore, a spectroscope is used to analyze absorption patterns within a gem, providing clues about its chemical composition and potential treatments. Lastly, an ultraviolet lamp is crucial for observing fluorescence, another diagnostic characteristic.
7. Career Options After Gemology
A qualification in gemology opens doors to a diverse range of career paths. Many graduates find fulfilling roles as jewelry retail professionals, guiding customers with expert knowledge. Others excel as diamond or gemstone graders in renowned laboratories. Opportunities also exist as auction house cataloguers, meticulously documenting precious items. Moreover, becoming a wholesale gemstone buyer requires keen market insight and negotiation skills. For those seeking independence, working as an independent appraiser is a viable option. Finally, a career as a laboratory researcher appeals to those interested in advancing gemological science.
8. Is Gemology Only About Science?
No, gemology is far more than a purely scientific discipline; instead, it artfully blends rigorous science with practical trade knowledge. Consider this example: a sapphire may exhibit the correct inclusions indicating natural origin, but its ultimate price often depends heavily on its specific origin and market perception. Therefore, deep scientific knowledge and sharp market awareness must effectively work together for success in this field.
9. Career Growth Paths in Gemology
The field of gemology offers numerous avenues for significant career growth. Professionals often begin their journey as a retail associate or a junior grader, building foundational experience. From there, progression into more specialized roles in wholesale, laboratories, or prestigious auction houses is common. As expertise develops, individuals can establish a strong reputation as an independent appraiser or a consultant. Furthermore, opportunities may arise to move into teaching, sharing knowledge with aspiring gemologists, or into writing, contributing to the industry’s body of literature.
10. Gemology for Jewelry Business Owners
For jewelry business owners, a background in gemology is an invaluable asset. Firstly, it helps to proactively avoid costly mistakes during sourcing and purchasing. Secondly, possessing this expert knowledge builds immense trust with customers, allowing for clear and confident explanations about products. Lastly, it instills greater confidence when sourcing directly from miners or dealers, ensuring informed decisions and better acquisitions.
11. Choosing Your Specialization
When considering a specialization in gemology, a critical self-reflection is to ask: Do you intrinsically prefer diamonds, colored stones, or pearls? Notably, a focus on diamonds frequently leads to roles in retail and esteemed certification laboratories. Conversely, specializing in colored stones often necessitates strong field knowledge, recognizing the nuances of diverse origins and treatments. Meanwhile, a passion for pearls typically connects with careers in luxury retail and high-end auctions, where discerning clientele appreciate their unique beauty.
12. Skills You Need Beyond Gemology
Beyond the core gemological knowledge, several complementary skills are indispensable for professional success. Possessing sharp observation is critical for discerning subtle details in gemstones. Developing clear client communication skills is paramount for effectively explaining complex concepts to customers. Furthermore, robust market analysis abilities are essential for understanding trends and pricing. Lastly, strong negotiation skills are invaluable, particularly in the dynamic processes of buying and selling gemstones.