What is the purpose of rough trading in the diamond supply chain?

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Rough trading is the buying and selling of rough diamonds between miners, cutters, and traders before any cutting occurs. This stage acts as the bridge in the diamond supply chain, moving stones from the mine toward manufacturing and providing liquidity and price discovery for rough material. By aggregating rough from various producers and delivering it to polishing houses, it enables financing, risk management, and efficient allocation of rough to cutters based on quality and market demand. This is specifically about pre-cut inventory, not about trading finished jewelry, selling polished stones, or mining metals.