Avi Paz, President of the Israel Diamond Exchange, was born in 1946 into a family of Belgian diamantaires.  He was born in Cuba, but grew up and studied in Belgium and in 1956 immigrated to Israel. In 1971, he started trading in diamonds and became a member of the Israel Diamond Exchange. He is also the owner and general manager of Paz Avi Fancy Ltd, a diamond processing enterprise established in 1977, which was the first company in Israel to produce fancy cut diamonds. 
Avi Paz turned to be President of the Exchange in 2005. Recently he was elected for the second term.
During the recent World Diamond Congress in Shanghai, Avi Paz was elected new President of the World Federation of Diamond Bourses.

It is known that Avi Paz sticks to the course of closer ties with Russia and is not a rare visitor to Moscow. He is a convinced advocate of trust and openness in the diamond market. Avi Paz is facilitating repatriation of Jewish diamantaires from France and Belgium and assisting in shifting the focus of their activities to Israel and in opening their offices and factories in Ramat Gan.  According to Avi Paz’s estimate, the “repatriation” of Jewish diamond companies to Israel will increase the scale of diamond trade in Israel by 50%.

There is a crowd of prominent diamantaires on the Diamond Exchange Board, so why is it you to become its President, recently elected for the second term and by a solid vote?

It is a great honour to be elected for the second time. About ten years ago, I became a member of the Exchange Board and worked in this quality for six years, I also headed the Legal Committee and the Security Committee, and three years ago I was elected President. Let me say a few words about myself. I grew up in Belgium and came to Israel when I was nineteen – alone, without my family. I did my service in the army and in 1971 started working at the Exchange. I am not sure to say whether I represent the fourth or fifth generation of diamantaires, some of them born in Kiev or Odessa. In 1939, my relatives fled from Belgium to Spain and wanted to go to the U.S.A. on board of a chartered ship, but were not given permission and went to Cuba. There my parents got acquainted and married and there I was born. In the period of the Second World War, Cuba – few people know it – had a well developed diamond processing industry. After the war, in 1946 my parents came back to Belgium. I turned to be a cutter like my father, my grandfather and my great-grandfather from Russia, and later I founded an enterprise specialized in fancy cutting.

Is it prestigious to be a cutter now as before? 
 
Unfortunately, it is less prestigious as compared with the old days, but still this work is valued rather high. For instance, last year diamond export reached $7 billion, of which $2.8 billion worth of diamonds were cut in Israel. Since Israeli cutters are working now with large stones, from one carat up to 10—15 carats, they currently need more experience and knowledge.
 
Do young people come in this profession? Are the dynasties continued?

I like this question very much, and it is a pleasure to answer it. Unlike other exchanges in the world, we have received this gift from on high – the young generation, which is very interested in starting its work in the industry. Last year we admitted 120 young diamantaires to be members of the Exchange; we could accept more but we are concerned about them and want them to get acquainted with their business well before they start working. This is why a person striving to obtain the status of an Exchange member must undergo an occupational training course during six months, studying rough and polished diamonds, jewelry and banking business, the Exchange Rules, behavioural peculiarities, the rules of trade with people who come, for instance, from China or Japan – the business conduct code.  We are preparing ground for them, and in the Trade Hall of the Exchange we opened the Technological Center furnished with the best technical facilities and most modern equipment, and there are three most expensive instructors to teach them. Because not all owners of young companies can afford buying equipment. Last year, we managed to enter into a series of agreements with banks about preferential credits for young diamantaires, and currently we are starting negotiations with large companies like ALROSA, DTC or Diamdel to have them prepare small diamond packages for the needs of young diamantaires and not those huge boxes they are used to sell. Here in Israel we understand it very well that young people eager to join the industry is a very positive fact. However, we should support them by all means cultivating their training – we are growing them like in a hothouse fertilizing the ground.

Young people are so agile now, while the cutter’s work requires rigorous concentration and accuracy…

I have a son working with me in this business. Young people coming into business have quite a new vision – they have grown up on computers and new technologies. This hit us later and we had to spend a long time to study it, while they are just ready. My grandchildren are drinking milk and playing e-games all at once and this is quite natural. Therefore, it is important that we give them a chance to express themselves so that all these technologies could enter the industry making the cutter’s work easier and improving the cutting business. However, having all this the main thing is the eye, brain and knowledge. One should know the trade from inside. And of course, we should keep an eye on our young people too. They are our future.

Formerly, in the Soviet Union stones were cut according to standards, which produced a lot of waste and this was unprofitable. Does fancy cutting require some special efforts, time and experience?

One should understand what standard things mean today… for instance, there are Rapaport price lists and every buyer may check prices using a PC – people are now aware better than before. However, if we want additional profit we have to turn to fancy stones – it is very difficult to set standard prices for them and to make up a price list – in this case both the manufacturer and the jeweler may earn a bit more.

Please tell us about your company.

We are working with stones, which are suitable for the emerald, princess and baguette cuts. About ten years ago we established and patented a new and exclusively our own type of cut called “prince” -  the prince cut has 111 facets and jewelry stores like to buy these stones, so there is an opportunity to earn a little bit since this is a special type of cutting. In our advertisements we write, “The princess has found her prince at last!”

This type of cutting should require more work and higher skill from the cutter, is it so?

More work there is, but there is more light reflection as well. Since this is our patent, this is the business of our cutters only.

Where do you sell your diamonds?

In Singapore, in the U.S.A., Great Britain, Scotland, Spain and Belgium.

Have you any plans with a view to Africa and China? 

My company has offices in Hong Kong and Shanghai, and in the nearest future I am going to open a new office in Shenzhen. As for Africa, I have no plans there since the major part of diamonds we produce in Israel or China.

Are the Israeli cutters more proficient compared with others?

Undoubtedly they are, since here they are cutting expensive stones of large sizes, so their workmanship should be higher.

Higher than in Belgium?

I am not sure there is such production turnover there and if there is any production there at all.

Have you ever heard about the “Russian cut”? What is your opinion about it?

Yes, I have. My deceased father was one of the pioneers who bought polished diamonds from Russia. He was a good friend of Maurice Tempelsman who sold wheat to the Soviets as early as 1962 getting jewelry and diamonds in return as payments. He used to bring all this to Belgium and shared it with my father. Russian diamonds are famous all over the world, and the Russian cut is widely known for its high level, very much above the medium.

Your forefathers from Odessa were also engaged in this?

They were more dealing with jewelry, but yes, they were engaged in cutting as well.

Do you now personally have to deal with cutting and sorting?

I am in close touch with my cutters and visit my workshops several times a week, though I dropped cutting long ago, but I adore sorting out diamonds – I come in the morning and sort them out myself.

Do they arouse in you – as in many - some special feeling?

You know, I think that dealing with diamonds is something special. Besides being, as they say, the symbol of beauty, purity and love, besides all these things our profession is very special and I do not know of any other such business where million dollar deals are made without lawyers and without contracts. For instance, I go to buy a house and there it starts – lawyers, contracts, middlemen…  While I bought today a mailed package of diamonds for half a million dollars - just wrote a small receipt and bought it. Because everything is based on trust between people. And this is very beautiful – working on trust. Of course, there are cases of deceit and mean things happen, but they are rare, and we know how to deal with these problems. We are united, all the bourses – members of the World Federation of Diamond Bourses – and if I remove someone from the bourse here in Israel cancelling his or her right he or she will not be able to enter any other bourse. Our force is in unity.

What is the difference between the Israel Exchange and other exchanges?

Have you seen its Trade Hall – it is the biggest in the world. It is always alive, a lot of people are working there and they all know each other. It is very important that everything which a diamantaire needs is under one roof – banks, post-office, carriers, and customs – there is no other place like this. There are thousands of cameras – we can put in the pocket stones for any amount and move freely around.

Your Exchange is developing as rapidly as the whole of your country. What was changed during the presidency of Mr. Paz?

The diamond industry is very important for the country’s economy as a whole. If we take into account the seven billion dollar worth export of polished diamonds and the three and a half billion dollar worth export of rough diamonds and compare this amount with Israel's total export we shall understand how important our industry export is. Many things changed during the recent years; tomorrow we shall sign a contract to extend the Exchange area - this will add to it ten thousand square meters. We are seriously attending our young generation and opened the Technological Center in the Trade Hall. We are also very active in the Israeli society. This year we shall celebrate the 70th Anniversary of the Israel Diamond Exchange. We are engaged in social projects and during this year were attending 120 children having problems at school and at home – we were dealing with them in the course of the whole year, hiring and paying teachers and instructors and helping them forward in their lives.

The diamond world is somewhat anxious now about diamond stocks. Are diamond mining companies worried too?

There is no anxiety despite the very impressive figures presented by Mr. Vybornov at the Diamond Conference concerning the diamond reserves of Russia for 15-20 years. Incidentally, the ties between ALROSA, WFDB and the Israel Diamond Exchange have a long history and we are obliged to develop them. I intend to visit Russia in the near future.
Yes, there were no large deposits discovered, but according to forecasts reserves exist. A natural diamond is a rare thing and one cannot come across it every day and at every step – this is why it so valued. This is a rare and beautiful thing. If there will be some scarcity there is nothing to worry about. This will only raise its price.

You are optimistic about the future.

I am always positive. The President must be positive!