Protecting millions of dollars in your pocket
Updated: Jul 15, 2020
Few, if any, other assets allow you, to carry millions of dollars in your pocket without revealing a thing to others. This makes diamonds a prime target for theft, both large scale and small.
And so Security companies come into the picture.
They provide safe and secure transport of diamonds. Some companies cannot even conduct business without these security agents, as their insurance providers mandate their use.
Anyone who has ever walked at the diamond districts would have noticed the dozens of security people walking the streets with unmarked suitcases of diamonds moving from place to place.
Here are some of the major security companies in our industry:
a publicly traded company on the NYSE, valued at $3.4 billion, with offices in all parts of the world. Perry Brink founded the company in Chicago in 1859 as Brinks City Express. The firm, which began as a single horse-drawn wagon, was established to shuttle passenger luggage between railway stations and hotels. In 1871 when the great Chicago fire destroyed tens of thousands of buildings, Brinks City Express' offices were destroyed, but miraculously its horses and wagons survived, and provided vital transportation in the city after the destruction. As the railroad industry began to decline in the late 1800s, Brinks began to transport money in order to survive. At the time, workers were paid in cash, and Brinks thrived on transporting money to businesses that needed to pay their staff.
Brink's was one of few companies that thrived in the Great Depression, as organized crime syndicates needed to move vast sums of cash around. By 1959 it had expanded to 112 locations in the United States and Canada, before beginning its international expansion, which would eventually lead them into the diamond industry in Israel, and later in Belgium. However, it was not until 1992 that they began to manage the international logistics for high-value shipments of diamonds and jewelry.
Brink's developed the armored car after successive robberies forced them to upgrade different elements of their delivery vehicles, which were blown up using dynamite and shot at. In fact, most of the upgrades and developments at Brink's over more than 150 years of operation came as a result of upgrading its infrastructure after robbers circumvented existing safeguards. They would go on to pioneer the two-key safe, bullet-resistant windows, turret guards, perimeter fencing, and electronic locks. Today Brinks is a massive enterprise serving the diamond industry and many others.
The company began after the diamond industry in Israel moved from Tel-Aviv to Ramat-Gan, and needed secure transportation of goods between the cities. In 1979, the Israeli government prohibited diamonds from being shipped through the mail, since so many never arrived at their destination. This helped Malca-Amit flourish, as they were already established as the transporter of diamonds in Israel.
The company has since expanded, both in its locations around the world and in its service offerings, but still services principally the diamond and jewelry industries. It now offers many services, including inspection services in tax-free zones and bonded warehouses, special trade-show packages for exhibitors attending trade-shows and exhibitions, private jet services for expedited delivery, and 360 degree photography services.
Like their competitors, Ferrari offers a diverse set of services beyond just physical transportation, including private security, warehousing, quality control, and exhibition security. They also boast a separate fine art division located in New York, and offer their own in-house insurance.
Without the support of security companies, our industry would likely grind to a halt, as thieves would have the upper hand, and insurance would cease to exist. These companies ensure the integrity of our product, and play a vital role to keep goods flowing into consumer's hands. They are typically at the forefront of development in new risk-management techniques and technology.