Commodity Chain

“A commodity chain is a process used by firms to gather resources, transform them into goods or commodities, and finally, distribute them to consumer. It is a series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market”


Diamonds were created billions of years ago below the Earth’s surface due to volcanic eruptions, high temperatures, and extremely high pressure. Since these diamonds are below the surface of the Earth, it can take a long time to locate them and mine them to the surface. Mining the diamonds requires a large amount of specialized equipment and very talented people in order to ensure that everything runs smoothly. Once the diamonds are mined, they are sorted based on shape, color, and size. Since diamonds are so strong, they can only be cut by other diamonds. The people who cut diamonds must be very careful and precise in order to make sure there is no error after they have started cutting. After the diamonds are cut, they are sold to wholesalers who process the rough diamonds before selling them to jewelry stores around the world.