Video Podcast: The Man Who Transformed the Rough Market

A video edition of the Rapaport Diamond Podcast digs into the rough-diamond sector with the help of special guest Adam Schulman, founder and CEO of tender house Koin International.

Schulman joined Rapaport’s Joshua Freedman to discuss how auctions and tenders have changed the way miners sell their goods.

Until 20 years ago, dealers bought rough over the table in bags through ad-hoc arrangements, Schulman explained. He saw an opportunity to make the process more transparent and competitive and enable miners to get the best price. This led initially to his launch of Fusion Alternatives, a tender house he created in a joint venture with rough broker I. Hennig, and later to the founding of Koin in 2015.

Although large miners such as De Beers operated some tenders, Schulman’s Fusion Alternatives was the first independent operation to offer the sales model for small- and medium-sized miners, he said. Most rough diamonds are now sold at tender or auction, Schulman asserted.

Schulman contrasted his system with the sight method of contract sales that De Beers and Alrosa use. He also explained why the Covid-19 pandemic prompted Koin to move its headquarters from Antwerp to Dubai.

The podcast, recorded on September 2, addressed the impact of tariffs on the rough market and how corporate tax has turned into an issue for diamond businesses in Dubai.

Schulman also shared his passion for wildlife and snapping photographs of desert and safari animals, which he posts on Instagram at @adam_s_photography.

Listen to the audio version of the podcast here:

This podcast is sponsored by Del Gatto Finance Fund, the largest non-bank lender to the global diamond and jewelry industry.