This is a true story that happend to a very reputable diamond dealer in the US.

He bought a piece of rough from another dealer. Paid $1000. While examing the stone, an Israeli dealer comes to his office, sees the stone and offers to cut it for him at his factory.

When entering back into Israel with the stone in his briefcase, he declares it at customs. Customs officials ask for the certificate of origin, as per the Kimberly Process.

Of course the thought had completely skipped the mind of both dealers. The stone was confiscated, and now the owner is out $1000.

I’ve heard it said that the only way to lose money on rough is by cutting it. Now it appears you can lose money by just “wanting ” to cut it.

Larry