The mechanism to buy and sell rough diamonds is bizarre. Diamonds are sold in “boxes”, collections of diamonds with similar characteristics, where values ranging from $100,000 to $1.5 million

The essence of a term contract is that the price is being set in the spot market. Now this poses a question for price discovery mechanism - is the spot market an accurate reflection of the total market preferences?

The game of interaction between buyers and sellers of the diamond market is peculiar and inefficient.