The Diamond Industry's Trust Limits

Many specialists have studied the diamond industry for years. One study focuses on the declining trust in the sector over the past 20 years. It showed how fragile corporate trust is. Studying trust tells us about its nature and the organizations that support it.

The diamond business relies almost entirely on mutual trust. Due to the high cost of diamonds, dealers and brokers must buy stones on credit. Credit sales put the seller at risk. Due to their portability, global worth, and near-untraceability, a buyer with credit can easily transport diamonds. Even if a diamond thief leaves behind stuff, it's worthless compared to the stolen stones.

Trust-based markets are great. Blind faith is unwise, however.

Principles hold people accountable.

First, the financial industry penalizes those who breach their duties. Any person accused of fraud, misappropriating funds, or other unethical behavior is named by a trade group and made public to the whole industry. The industry avoids defaulters whose faces are posted. Staying off the board and maintaining a good reputation can lead to a successful corporate career.

Second, residents enforce local laws. Family businesses are the sector's backbone, and reputations are inherited. Those who break trust damage their own and their families' reputations. Many people plan to leave their successful businesses to the following generations, posing reputational problems. They also employ relatives and other ethnic groups. Families and communities shame and punish cheaters because they gain from everyone being honest.

Reputations help the business maintain a pre-modern, pre-legal framework. The Diamond District shows that family businesses and community enterprises still have a place in the 21st century by allowing old world trade to thrive on American soil.

Owl Financial Group's alternative financing for the diamond industry has earned the industry's trust for over a decade.

As a family-owned business, they have a strong reputation as trustworthy individuals. Kalman Klein and Kathy Hillelson have been in the jewelry industry for over four decades and are well-respected by jewelers and manufacturers worldwide. If references are still required, we will gladly send them to you.

CALL US TODAY at 212-319-1250 for a private, discreet conversation on how you can leverage your jewelry assets to meet your cash needs.

You can also email us at info@owlfinancialgroup.com with any questions you may have or schedule a meeting at our offices.

Owl Financial Group - Respected and trusted by Jewelers and Manufacturers throughout the world for over a decade.

Warm Regards,

Kathy Hillelson & Kalman Klein

Owl Financial Group, LLC

P: 212.319.1250 | F: 888.518.5744 | 844.CALL.OWL

info@owlfinancialgroup.com