Editor’s Note
This article explores the fascinating dual life of the Hebrew word “mazal,” tracing its journey from a common expression of “good luck” in celebrations to its formal role as the binding word for closing multi-million dollar deals in the global diamond trade.
In Hebrew, there is a word ‘mazal’. Meaning luck or fate, it is widely used in phrases like “Mazal Tov” (Congratulations) at weddings, birthdays, and other celebrations.
However, there is another place around the world where you can hear this word ‘mazal’—the diamond trading markets. In major global diamond markets like the US, Belgium, India, and Hong Kong, it’s common to witness two people shaking hands and exclaiming “Mazal!” after concluding a deal, signifying the successful completion of a transaction.
Not many people know that Israel hosts a world-class diamond trading market. Here, both rough and polished diamonds are traded. Rough stones are imported, processed, and sold, while stones requiring more intricate workmanship are imported into Israel from other countries. Compared to countries like India, which primarily process smaller stones, Israel specializes in processing larger ones.
How did Israel, a small country, become a central hub for global diamond trade? During the European Middle Ages, diamond trading was one of the few professions permitted for Jews, who faced occupational restrictions. The trade grew significantly through transactions among the globally dispersed Jewish diaspora. A key foundation was laid in the early 20th century when Jews, who had developed sophisticated diamond polishing machinery in places like Antwerp, Belgium, immigrated to Israel.
Diamond businessmen have developed a unique business culture, shaped by the nature of diamonds—small but extremely valuable. Trust is paramount.
It is also predominantly a family-run business. This is due to the extensive training required to appraise gems and identify trustworthy trading partners, and the belief that ultimately, only family members can be truly reliable managers.
The Israeli diamond industry operates like a separate world, somewhat detached from other industries. Its symbol is the Israel Diamond Exchange (IDE) in Tel Aviv.
While Israel is known for its stringent visa requirements, it issues special visas to foreign diamond buyers. The Diamond Exchange handles this visa process on their behalf, where the frequency of a buyer’s visits to the exchange is a key criterion.
With the appreciation of the Korean Won, Korean buyers have resumed diamond imports from Israel. According to the Diamond Exchange, Indian buyers favor yellow diamonds, while Americans prefer less intricate, whiter stones.
Traditionally, the global diamond industry has been led by the US, Belgium, and Israel. However, in recent years, the rapid growth of India, China, and Hong Kong poses a threat to Israel’s established central position. It remains to be seen what creative strategies the famously shrewd Jewish business community will employ to defend its diamond industry.
(Reporter Young-sun Lee, Tel Aviv KBC Center Chief)