Diamonds & DiamondGrading

2
Birth of the Modern Diamond
Industry
 Table of Contents

Subject Page

The First South African Diamond Mines . . . . . . . . . . . . . . . . . . . . . . . . 3

Important Diamonds Attract Attention . . . . . . . . . . . . . . . . . . . . . . . 3
Kimberley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The First Miners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Cecil Rhodes Takes Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
The Diamond Market’s Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Gaining Market Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
The Great Depression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
World War II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Single-channel Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
History of Rough Diamond Distribution . . . . . . . . . . . . . . . . . . . . . . . 25
Sorting Rough . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Sights and Sightholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
The Changing Diamond Market . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
©
©2002 The Gemological Institute of America
All rights reserved: Protected under the Berne Convention.
No part of this work may be copied, reproduced, transferred, or
transmitted in any form or by any means whatsoever without the
express written permission of GIA.
Printed in the United States.
Reprinted 2004

Cover photos: (clockwise from left) Diamond Trading Company, Leona Wood, Diamond Trading Company

Facing page: The modern diamond market’s story started with lone miners sifting diamond rough out of the dirt. Today—a little
more than 100 years later—it’s a highly mechanized, multimillion-dollar international industry.
Chris Bell/FPG International LLC

BIRTH OF THE MODERN DIAMOND

INDUSTRY
The world’s love of diamonds had its start in India, where diamonds were
gathered from the country’s rivers and streams. Some historians estimate
that India was trading in diamonds as early as the fourth century BC. The
country’s resources yielded limited quantities for an equally limited market:
India’s very wealthy classes. Gradually, though, this changed. Indian dia-
monds found their way, along with other exotic merchandise, to western
Europe in the caravans that traveled to Venice’s medieval markets. By the
1400s, diamonds had become fashionable accessories for Europe’s elite.
In the early 1700s, as India’s diamond supplies began to decline, Brazil
emerged as an important source. Diamonds were discovered in the pans
of gold miners as they sifted through the gravels of the Amazon River and
its tributaries. Once it reached its full potential, Brazil dominated the dia-
mond market for more than 150 years.
While sources changed, the diamond market experienced its own evo-
lution. The old ruling classes—diamonds’ biggest consumers—were in

©2002 GIA. All rights reserved. 1

 DIAMONDS AND DIAMOND GRADING 2

Ke y C o n c e p t s
Abundant South African diamond
sources appeared in the late 1800s,
just as diamond demand broadened.

Elio Ciol/Corbis

In the 1800s, wealthy citizens—like this European family—replaced the ruling classes
as the main consumers of diamond jewelry.

Harold and Erica Van Pelt/GIA

This 1830s ring features a portrait of England’s king at the time—William IV—painted
on either ivory or mother-of-pearl. A table-cut diamond protects and displays the art-
European nobility, like Empress Marie
work, which is surrounded by brilliant-cut diamonds.
Louise of France, were still enthusiastic
diamond buyers in the early 1800s, but
they were soon outnumbered by the decline by the late 1700s. Political upheavals like the French Revolution
growing and increasingly prosperous led to changes in the distribution of wealth.
wealthy class.
The 1800s brought increasing affluence to western Europe and the United
States. This broadened the demand for all kinds of luxury goods, including
diamonds. In the late 1800s, just in time to satisfy the expanding market,
explorers unearthed the first great South African kimberlite pipes.

2
 BIRTH OF THE MODERN DIAMOND INDUSTRY

The buying and selling of diamonds is now a multibillion-dollar inter-

national industry. The factors that contributed to its phenomenal growth
are part of the diamond trade’s history. As you’ll see, it’s a history of hard
work as well as of political and social upheaval.
The story of the modern diamond market really begins on the African
continent. In this assignment, you’ll learn about the diamond trade’s devel-
opment and the evolution of its market structure. This history will give you
a better understanding of its status today. It will also help you appreciate
the changes in the market as it moves into the twenty-first century.

THE FIRST SOUTH AFRICAN DIAMOND MINES

■ What were the first important South African diamond discoveries?
■ What were conditions like in the early mining towns?
■ How did Cecil Rhodes gain control and establish De Beers?

There are many stories about the exciting early years of South African
diamond exploration. Some tell of children playing with shiny stones that
turn out to be diamonds. Or of people stumbling on fortunes in piles of
dirt. But the fact is that, with a few notable exceptions, most diamond
finds were far from accidental. Attracted to the area by a few early
discoveries, geologists and mineralogists were searching for diamond
deposits and offering rewards for information leading to them.
As they came to light in the late 1800s, the South African sources
affected many segments of the diamond industry. This was especially Corbis
true, as you’ll see, as diamond mining moved farther underground. By the early 1870s, the diamond rush
Because of the huge costs involved, the new sources forced the develop- had begun in the diamond fields of
South Africa. The cover of this October
ment of more efficient mining techniques. They created the need for bet- 1872 issue of the London News fea-
ter marketing. They also led to advances in cutting and polishing— tured diggers and their assistants sort-
advances that increased efficiency, reduced costs, and enhanced the ing rough diamonds at a claim site.
appearance of finished stones.
Single-channel marketing—A
The new abundance of diamonds brought problems, too. More than direct, centrally controlled market-
once, overproduction caused prices to drop. This inspired early diamond ing route for rough diamonds.
entrepreneurs to look for ways to balance supply and demand—and keep
prices stable. The idea of single-channel marketing took root in those Central Selling Organisation
early years and eventually grew into the Central Selling Organisation (CSO)—An agency designed to
(CSO), designed to purchase, sort, evaluate, and sell rough diamonds. For purchase, sort, evaluate, and sell
decades, the CSO served as the marketing and distribution channel for rough diamonds.
rough diamonds from mines all over the world.

IMPORTANT DIAMONDS ATTRACT ATTENTION

The story of Africa’s diamonds began in 1866 with the discovery of a
21.25-ct. rough diamond on a farm south of Kimberley, South Africa.
There is evidence of other discoveries, some as early as 1854. But the
“Eureka,” as it was called, was the first to be authenticated.

3
 DIAMONDS AND DIAMOND GRADING 2

AFRICA

TRANSVAAL
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Premier

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ND ORANGE FREE STATE
A LA NATAL
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3. De Beers Mine
Area of Major

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4. Kimberley Mine

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Alluvial

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Diggings

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Cape Town 3

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Kimberley 2

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Zandfontein
or
a
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Jagersfontein
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Peter Johnston/GIA

The Kimberley area was the center of South African diamond mining in the late 1800s. The discovery of the Star of South Africa
at Zandfontein in 1869 attracted prospectors to the area. Then came the discovery of the mines in the Kimberley area and at
Jagersfontein. The Premier mine, farther north, was discovered in 1903.

Ke y C o n c e p t s After the Eureka, almost three years passed without major discoveries,
The diamond rush began with the and interest in diamond exploration faded. Then in 1869, the Star of
South Africa—a magnificent 83.50-ct. rough diamond—renewed dia-
discovery of the Star of South Africa mond fever. Prospectors searched the banks of the Vaal river, where it
in 1869. was found. They unearthed more diamonds nearby and the real rush
began.
People came to the diamond fields from all over the world in search of
opportunity and riches. Most of the early prospectors were English, but
some came from other European nations, some from North America, and
some from Australia.

4
 BIRTH OF THE MODERN DIAMOND INDUSTRY

Prospectors came from all over the world to the diamond fields of South Africa. Some
took advantage of pontoon boats to cross the Orange River.

Diggers offered wages for help with their claims. Many South African men traveled
long distances to the Vaal River diamond fields in search of work.

Diamond prospectors, called diggers, paid wages to field workers, so Digger—An independent diamond
many South African men traveled long distances to work in the mines. Most prospector.
of them left families behind for the first time, but the promise of regular
wages, and money to return home with, made the journey worthwhile.
Diggers combed through the gravel and staked claims up and down the
Vaal River. An estimated 10,000 people poured into the area and set up a
string of camps. Meanwhile, a few diamond finds in the surrounding hot,
dry plains caught the attention of some prospectors. Some of those finds
were accidental: One man discovered a handful of small diamonds while
mixing mud to build his house.

5
 DIAMONDS AND DIAMOND GRADING 2

Diggers came to the Vaal River from More than 10,000 diggers set up camps around the Vaal River and surrounding
Europe, North America, and Australia. plains.
Their simple equipment consisted
mostly of picks and shovels.

In spite of the primitive mine conditions of the 1870s, some Vaal River diggers
brought their families along for help and companionship.

Dry diggings—A prospector’s term Soon, there were enough discoveries to attract some diggers away from
for diamond deposits away from the crowded riverbed. There, they started the first dry diggings. Away
water. from the river, they needed only picks and shovels. And they didn’t have
to stand in water for hours or risk a flooded claim.

6
 BIRTH OF THE MODERN DIAMOND INDUSTRY

A Diamond That Changed History

THE STAR OF SOUTH AFRICA
(THE DUDLEY)
Weight: 83.50 cts. rough, 47.69 cts. cut
Clarity: reported flawless
Cut: pear-shaped brilliant
Source: Zandfontein Farm, South Africa

In March 1869, a shepherd picked up a pebble that

caught his eye. He tried to barter the strange stone,
first for a place to sleep, then for breakfast. Everyone
he approached turned him down.
Finally, he found his way to Schalk van Niekerk,
a local farmer who, a few years earlier, had been
given what proved to be the 21.25-ct. Eureka.
Van Niekerk recognized the shepherd’s “pebble”
as a diamond—four times the size of the Eureka!
He gave the shepherd a horse, 10 oxen, and 500
sheep—a package worth about £150—in exchange
for the gem. He could only guess what the rough
would yield, so it was a gamble to pay such a high
price. His gamble paid off: He sold the diamond
for £11,200 (then equal to US$56,000).
The huge gem was named the Star of South
Africa and displayed in the South African
Parliament building. Legend has it that it prompted
the colonial secretary to predict, “This diamond, The Star of South Africa, in its rough
gentlemen, is the rock upon which the future pros- form, was purchased for £150 worth
of livestock in 1869. It became a
perity of South Africa will be built.” magnificent pear-shaped gem that
Actually, there is no evidence the secretary or brought more than US$500,000 at a
Christie’s auction in 1974.
anyone else ever said that. But the Star’s discovery
sparked the diamond rush that followed. The
industrialized world suddenly stopped looking at South Africa as just a struggling
agricultural country.
Louis Hond, a London cutter, bought the Star in 1870 and fashioned it into a
47.69-ct. pear-shaped brilliant. He sold the gem to the Earl of Dudley for what was
then equivalent to US$125,000. Lady Dudley had it set in a hair ornament surrounded
by 95 smaller diamonds. Since then, it has sometimes been called the “Dudley.”
The diamond passed out of the Dudley family around 1929. It resurfaced in May of
1974, when Christie’s Geneva sold it at auction. At that time, it was set in a detach-
able pendant with smaller brilliant-cut diamonds. An unnamed buyer paid more than
£225,000 (then equal to US$500,000) for it.

7
 DIAMONDS AND DIAMOND GRADING 2

In 1870, miners who worked the dry diggings at Dutoitspan, South Africa, lived in tents scattered around the arid countryside.

KIMBERLEY
Those dry diggings led to the discovery, in 1869, of deposits that became
the Bultfontein and Dutoitspan mines. Both were located in what was to
become the booming diamond town of Kimberley. These discoveries and
those that followed in 1870 and 1871—including the deposits that became
the De Beers and Kimberley mines—changed the diamond industry and
South Africa forever.
Today Kimberley is a modern city of over 100,000, but back then it was
a makeshift mining town. It materialized out of the barren surroundings
almost immediately after the first diamond discoveries. The first to arrive
were the diggers. Within a short period of time, they set up residence in
thousands of tents that cluttered the countryside. Some historians estimate
that at one time, the population of Kimberley—including diggers, their
hired laborers, and their family members—reached as high as 50,000.
J. Haskin
In those early days, Kimberley was a fairly peaceful town. Its residents
The centerpiece of this brooch is a
128-ct. fancy yellow diamond. It was
were generally law-abiding, and few of them owned guns. The Diggers’
cut from a 287-ct. piece of rough that Committee, a citizens’ group formed to keep the peace, dealt with the iso-
was reportedly recovered in 1878 from lated incidents of armed robbery and drunken brawling.
a Kimberley mine claim.
At first, supplies had to be brought in by oxcart from Cape Town, a dif-
ficult two-week journey. As a result, even food and everyday grooming
needs were expensive. But the population’s size and vitality soon attracted

8
 BIRTH OF THE MODERN DIAMOND INDUSTRY

In the late 1800s, the town of Kimberley consisted mainly of temporary buildings.

Thousands of independent diggers were at work, so diamond buyers’ offices—

usually built with corrugated iron walls—were busy places.

9
 DIAMONDS AND DIAMOND GRADING 2

Kimberley changed dramatically between the 1870s and the early 1900s. It grew from a jumble of corrugated iron and canvas
shacks to a bustling city, complete with a clock tower.

entrepreneurs to the area. Shopkeepers arrived to supply the town with its
basic needs. Rustic hotels and bars opened up to provide them with food
and drink. On market days, farmers from distant farms brought wagonloads
of produce and livestock to sell. Diamond buyers set up shop in tents or
bought rough directly off the diggers’ sorting tables.
Wood—needed for construction as well as for fuel—was scarce. Public
buildings were constructed out of corrugated iron and canvas. And many
residents burned ox droppings for heating and cooking.

THE FIRST MINERS

A diamond field often contained hundreds of claims, all individually owned.
Harry Winston Inc. One or two diggers worked each 30-ft. by 30-ft. (about 9-m by 9-m) claim,
The 55-ct. Porter Rhodes diamond was sometimes with the help of hired laborers.
cut from a 154-ct. piece of rough. It’s
named for the owner of the Kimberley The diamond-bearing material near the surface was relatively soft and
claim where it was found. workable. The diggers called it yellowground because of its yellowish
color. They hoisted it out of the pits and broke it into smaller pieces, then
moved it to the sorting tables. After sorting, the yield from all that hard
work often consisted of only a few small rough diamonds.

10
 BIRTH OF THE MODERN DIAMOND INDUSTRY

The Jubilee diamond was unearthed

from Jagersfontein—one of the original
Kimberley mines—in 1895. The rough,
which weighed 650.80 cts., yielded a
colorless 245.35-ct. cushion cut.

In 1872, the Kimberley mine was already a dangerous network of deep holes and
narrow pathways.

Ke y C o n c e p t s
Early South African diamond
fields contained hundreds of small,
individually owned and operated
claims.

By 1875, there were thousands of individual claims in the Kimberley area. Each
claim had a separate cable system to carry ore to the mine’s rim. This made the
area a perilous snarl of cables and gears.

As the claims deepened and narrowed, the yellowground ran out.

Underneath, miners found blueground, or unoxidized material.
Blueground had a bluish to gray color. It was harder and tougher because
it hadn’t been softened by exposure to air and light. Most diggers assumed
that the diamonds ran out when the yellowground did, and many of them
gave up their claims.

11
 DIAMONDS AND DIAMOND GRADING 2

This 1882 plan of Kimberley mine ownership shows about 50 individual claims, a sharp decrease from the 3,600 claims that
existed in 1878. The drop occurred after mines became deeper and harder to work. Many individual owners sold out and moved
to other areas. By 1887, most of the claims on this map were under Cecil Rhodes’ control. The figures around the edges show
that security was a constant challenge to mine owners.

For those who decided to go deeper, the greater depths made mining
more complex, and much more dangerous. Rock slides and flooding proved
disastrous. Because of the added depth, miners needed more elaborate
equipment, which meant more expense. Theft and smuggling ate up profits.
To make matters worse, the growing supply of diamonds caused prices to
drop in Amsterdam and Antwerp, then the centers of the cutting industry.
To combat rising mining costs, some of the diggers formed partnerships
and small companies to buy abandoned claims. The purchase of multiple
claims made it possible for diggers to expand their operations over wider
areas. This made it more difficult for solitary claim holders to survive.
Some moved on to areas where they could still work with the shallower
yellowground and use less expensive equipment. Some turned to mining
gold when that precious metal was found in territories farther north in 1885.

12
 BIRTH OF THE MODERN DIAMOND INDUSTRY

His Vision Gave Birth to an Industry

Cecil John Rhodes left his native England in 1870 to join his older
brother in South Africa. He was just 17 years old. The brothers caught
diamond fever and headed for the area that later became known as
Kimberley.
While the brothers worked their claim, Rhodes added to his income
by selling water to the thirsty diggers. By age 19, he was financially
independent, and a dominant presence in the diamond fields.
For the next eight years, he divided his time between South
Africa and England. In England, he earned a degree at Oxford
University. Meanwhile, his South African businesses prospered. By
1888, he owned all of the diamond mines in the Kimberley area. He
established De Beers Consolidated Mines Ltd. to control them.
To Rhodes, diamonds meant power. He had visions of an African
continent united under British rule. Rhodes pursued his dream
through politics as well as commerce. In 1881, at age 28, he was
elected to the Cape Colony parliament. He became prime minister
in 1890.
After resigning his government post in 1896, Rhodes continued to
promote his dream of a pan-African empire under British rule. That
vision inspired his efforts to span the continent with telegraph and Cecil Rhodes was a dominant force in
railway lines. And he remained an influential figure in African the diamond industry almost from the
politics. day he arrived on South African soil in
1870. His influence lasted long after his
Austere and aloof, he was addressed as “Mr. Rhodes” even by death in 1902.
friends. He died in 1902, at age 48. He was entombed on a hilltop in
Rhodesia—a territory of southern Africa named after him and since
renamed Zimbabwe. His body lies in a teak casket under a stone
slab with an inscribed brass plate in a cavity chiseled out of solid
granite. He left most of his fortune to Oxford University to fund the
scholarships that still bear his name.

CECIL RHODES TAKES CONTROL

British citizen Cecil Rhodes arrived in South Africa in 1870, just as the Ke y C o n c e p t s
first diamonds were discovered. From that day forward, he was an enthu- Cecil Rhodes wanted to stabilize
siastic participant in the ever-growing diamond industry. He studied its
diamond prices, so he started by
operation and gradually developed the idea that he could stabilize diamond
prices by balancing supply and demand. The first step, he decided, was to trying to control production.
control production.
Rhodes gathered financial partners and bought as many claims as he
could. By 1887, his company held all the claims in the De Beers mine.
Rhodes then turned his attention to the Kimberley Mine.
Meanwhile, Kimberley entrepreneur Barney Barnato had been buying
up claims for his own company, Kimberley Central. In 1887, he was a

13
 DIAMONDS AND DIAMOND GRADING 2

dominant shareholder in the Kimberley Mine. Another enterprise, the

French Company, was also a significant shareholder. When Rhodes made
an offer for the French Company, Barnato sensed a takeover attempt and
tried to outbid him.
Rhodes and his partners convinced Barnato to let them take over the
French Company. But they didn’t stop there. To add to their Kimberley
holdings, they started to buy all the Kimberley Central shares not yet held
by Barnato.
To maintain his dominant position, Barnato had to compete with
Rhodes and his partners for those same Kimberley shares. The competi-
tion caused the price of shares to skyrocket. Meanwhile, the mines were
producing more diamonds than the market could absorb. As production
increased and prices fell, share prices continued to rise. Finally, after a
few weeks of near-ruinous competition, Rhodes was in control with 60
percent of the stock.
On March 13, 1888, Rhodes incorporated his new company. He
At first, Barney Barnato was Cecil called it De Beers Consolidated Mines Ltd., named after the owners of
Rhodes’ main competitor in the dia- a farm where one of the first diamond rushes took place. His company
mond trade. When Rhodes bought him owned the De Beers mine, 75 percent of the Kimberley, and a controlling
out, Barnato became a partner in
Rhodes’ new company, De Beers interest in two other local mines—the Bultfontein and the Dutoitspan.
Consolidated Mines Ltd. The company’s first-year profits were over £300,000. At the time, this
equaled US$1.5 million. It was a very promising start for the new
company.
Ke y C o n c e p t s By 1900, De Beers controlled an estimated 90 percent of the world’s
production of rough diamonds. With what amounted to a production
Cecil Rhodes established De Beers
monopoly, Rhodes had reached his goal of controlling prices by control-
Consolidated Mines Ltd. in 1888 to ling the supply.
direct mining operations. Rhodes, of course, took charge of the operation. Barnato served on the
board while tending to his other interests, including gold mining and
banking, until his death in 1897.

THE DIAMOND MARKET’S GROWTH

■ How did De Beers gain influence over the diamond market?
■ How did De Beers maintain its operations during the Depression
and World War II?
■ How did the concept of single-channel marketing contribute to
De Beers’ growth?
■ What kind of ownership arrangements did De Beers make with
major mines worldwide?
London Diamond Syndicate—A Shortly after Cecil Rhodes formed De Beers, the company contracted
group of diamond merchants that with a group of prominent London diamond merchants. The organization
united in 1890 to buy and sell was known as the London Diamond Syndicate, or simply the Syndicate.
rough diamonds. The Syndicate contracted to buy and sell all of the output of the major
diamond producers, including De Beers. Working together, De Beers and
the Syndicate matched diamond production to consumer demand.

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

SIERRA
LEONE

CONGO
(Belgian Congo/Zaire)

TANZANIA

ANGOLA
ZAMBIA
(N. Rhodesia)

NAMIBIA ZIMBABWE
(German (Rhodesia)
SW Africa)
BOTSWANA

SOUTH
AFRICA

Peter Johnston/GIA

By the late twentieth century, diamond mining in Africa had spread from South Africa to locations
throughout the continent.

GAINING MARKET CONTROL

Even with the Syndicate’s help, De Beers was only partially successful in
its attempts to maintain prices by controlling production. This was because
of the establishment of major independent mines, owned and operated by
German companies. The first was the Premier Mine, established in 1903.
Then in 1908, rich alluvial deposits were discovered in what was then the
German colony of South West Africa (now Namibia).
But it wasn’t only independent mines that caused trouble for De Beers.
In 1907, the jewelry industry was hit by a worldwide recession. Demand
for diamonds all but disappeared, so the Syndicate had a large diamond
supply it couldn’t sell. De Beers cut back production, but because the
Premier Mine and the new German mining companies were not part of the
Syndicate, they kept on producing. Prices continued to fall.

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 DIAMONDS AND DIAMOND GRADING 2

Ke y C o n c e p t s
When it couldn’t own every mine,
De Beers began buying rough from
other producers to safeguard diamond
prices and ensure market stability.

German holdings in South West Africa were so rich in diamonds that there was no
need to dig. In this 1908 photo, African laborers and German officials are searching
for diamonds by crawling on their hands and knees.

In 1926, diamond-bearing alluvial deposits were discovered in Lichtenburg, in the

western Transvaal. A starting flag signaled the beginning of a rush for thousands of
individual claims.

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

Diamond fields were unearthed in the Belgian Congo in the 1920s, adding to the
world’s growing supply of diamonds.

In the 1920s, prospectors unearthed new alluvial deposits in

Lichtenburg (in the western Transvaal) and Namaqualand (near the coast,
south of the Orange River). After that, more diamond deposits were found
in Angola, the Belgian Congo (later renamed Zaire, then Congo), and
elsewhere in Africa. Some were mined by the independents who discov-
ered them, and some by the local governments. When the governments
got into the diamond-production business, another challenge was added to
De Beers’ attempts at central control.
It became impossible for De Beers to own every existing mine, so the
company shifted emphasis, buying rough wherever it was produced. The
company felt that these activities were necessary to safeguard diamond
prices and ensure market stability. By 1929, the company was buying huge
quantities of rough diamond from mines in Angola, Zaire, Lichtenburg,
and Namaqualand.

THE GREAT DEPRESSION

Ernest Oppenheimer assumed the De Beers chairmanship in 1929, just as John Van Couvering
financial disaster struck the world and the diamond industry. The US stock Demand for diamonds dropped to
market crashed and the Great Depression began. It lasted for almost 10 years. almost nothing during the Great
During that time, demand for diamonds dropped to practically nothing. Depression of the 1930s, and many
Many small mining companies went out of business, and De Beers used its mining operations closed down. By the
time the industry recovered, the drifting
strained resources to buy them. Gradually, the company gained control of sands had reclaimed abandoned mining
all South African production that wasn’t controlled by the government. towns like this one in the Namib Desert.

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DIAMONDS AND DIAMOND GRADING 2

Ruler of a Modern Diamond Empire

Ernest Oppenheimer was born
near Frankfurt, Germany in
1880, the son of a cigar
merchant. He was short in
stature, slender, and shy, with a
first-class mind for business. He
started work at age 16 in the dia-
mond firm of A. Dunkelsbuhler,
a member of the London
Diamond Syndicate.
In 1902, Oppenheimer’s
employers sent him to South
Africa to oversee their buying
office. He became a South
African citizen, was elected to
the Kimberley City Council in
1908, and became Kimberley’s
mayor in 1912. He also served
in the South African parliament
from 1924 to 1938.
Oppenheimer was an outspo-
ken advocate of mining interests
and better job opportunities for
African workers.
Sir Ernest Oppenheimer was chairman In 1917, with backing from
of the De Beers board of directors
from 1929 until his death in 1957.
an international group of
financiers that included
some American bankers,
Oppenheimer founded the Anglo American Corporation (AAC).
The AAC was a major player in the gold-mining industry, but
Oppenheimer also kept his eye on the diamond business. “From the
very start,” he wrote to his American associates, “I expressed the
hope that, besides gold, we might create, step by step, a leading
position in the diamond world.”

In 1930, Oppenheimer created the Diamond Corporation (Dicorp) to

succeed the London Diamond Syndicate, which he’d restructured in 1924.
Dicorp’s purpose was to buy and market rough from its producer-
members, as well as from outside producers and the Union of South Africa.
Diamond demand was still extremely low in 1932, so Oppenheimer shut
down the De Beers mines.
In 1934, Dicorp and other major diamond producers joined together
to form the Diamond Producers Association (DPA). Each producer

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

The discovery of diamonds in German-controlled South West Africa

(now Namibia) gave Oppenheimer the opportunity he was looking for.
When World War I broke out, the South African government seized the
German holdings. The war ended in 1918 and, with the South African
government’s approval, Oppenheimer bought the confiscated properties.
To oversee his new holdings, he formed Consolidated Diamond
Mines (CDM) of South West Africa. CDM also developed new
diamond discoveries in Angola and the Belgian Congo. In a short
time, CDM became De Beers’ most serious rival.
In 1924, the AAC—which had become a major shareholder in both
CDM and De Beers—was admitted to the London Diamond Syndicate,
and Oppenheimer gained a dominant voice in the diamond trade. The
same year, the Syndicate’s contracts with diamond producers expired.
The Syndicate and the producers couldn’t agree on new terms, so
Oppenheimer stepped in. He formed a new Syndicate, which took over
the stock and obligations of the old one.
The original group had been composed of brokers and financiers.
The new Syndicate more closely reflected diamond producers’ inter-
ests. The reorganization made it easier to absorb newly discovered
sources and to protect the industry during periods of reduced demand.
In 1926, Oppenheimer was elected to the De Beers board of direc-
tors. By 1929, at age 49, he was its chairman. He remained in control
of both De Beers and the AAC until his death in 1957. The AAC
remains an important global mineral mining company. CDM func-
tioned as a diamond producer until 1994, when it was restructured as
Namdeb, a company shared equally between De Beers and the
Namibian government.
Through it all, Oppenheimer’s financial empire continued to
expand. By the end of his life, Sir Ernest (he had been knighted by
the British crown in 1921 for his services during World War I)
controlled 34 major companies. Before his death, he attained Cecil
Rhodes’ initial goal: the consolidation of the production and sale of
diamonds.

agreed to provide a percentage of total production. All members marketed

their stones through a sister company of Dicorp called the Diamond Trading
Company Limited (DTC). Dicorp, the rough diamond buyer, and the DTC,
the rough diamond seller, were combined to establish the CSO. Under
Oppenheimer’s guidance, these organizations supported the single-channel
marketing of rough diamonds. The DPA disbanded in 1987.
The diamond industry felt the aftereffects of the Great Depression for
several years. Even with its mines closed, De Beers still had $56 million in

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 DIAMONDS AND DIAMOND GRADING 2

The Central Selling Organisation was established in 1934. For decades, its London
headquarters dominated the wholesale diamond trade.

unsold diamonds in 1935, and world sales were stuck at only $15 million
per year. Sales soon started to rise again, but De Beers kept the mines
closed until 1944. The backlog was still so large that it took until 1952 to
sell off the stockpiled diamonds.

WORLD WAR II
Ke y C o n c e p t s De Beers was the world’s major supplier of industrial diamond supplies
Military needs during World War II when World War II began in 1940. During the war, manufacturers of
military equipment pushed the demand for industrial-grade rough to new
heightened demand for industrial heights. After the war, demand remained high, and Oppenheimer formed
diamond rough. De Beers Industrial Diamond Division (Debid) to handle that demand.
He also established the Diamond Research Laboratory to develop new
industrial applications for diamond.
As the world recovered from the war, the market for gem-quality
diamonds began to revive as well. The United States became increasingly
affluent. Later, so did Europe and Japan. Even with periodic economic
recessions, worldwide diamond sales increased steadily.

SINGLE-CHANNEL MARKETING
The system of supply and price control that became known as single-
channel marketing proved essential to De Beers’ development and to the
growth of the international diamond trade. It was based on a simple concept
with a structure unlike anything else in the business world. The majority of
rough diamonds from mines worldwide were handled by a single agency—
the CSO. (This changed with the restructuring of De Beers in 2001. You’ll
learn about this and other market changes in the next assignment.)

20
 BIRTH OF THE MODERN DIAMOND INDUSTRY

Leona Wood

De Beers promoted diamond jewelry with major worldwide advertising campaigns. This July 1955
magazine ad featured the company’s familiar slogan.

For almost 67 years, the CSO was the rough diamond sales arm of De
Beers. Its main divisions were Dicorp, which purchased diamonds; CSO
Valuations AG, which sorted and valued the diamonds; and the DTC,
which sold the diamonds.

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DIAMONDS AND DIAMOND GRADING 2

The Premier in South Africa started as an independent mine in 1903, but it even-
tually came under De Beers’ direction. Its gigantic pipe spans almost 80 acres at
its surface.

Throughout its long history, De Beers developed and strengthened its

marketing strategy. These were its main elements:
• Strong global advertising, supported by an annual budget that has
reached as high as US$200 million per year
• A diamond stockpile, maintained and released selectively to balance
supply and demand
• A worldwide network of outside buying offices
• Quota provisions in the contracts with its CSO partners that allowed
equal sharing of oversupply challenges
• Control over distribution through a strong client network
Two organizations were created to assist the company in its marketing
efforts: the Diamond Information Center (DIC) and the Diamond
Promotion Service (DPS). The DIC was designed as a public relations
service. It supported De Beers promotional campaigns by providing infor-
mation about diamonds and diamond jewelry to the public through the
media. The DPS supported the diamond industry with promotional activ-
ities, point-of-sale materials, and training programs.

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

Workers at the Botswana Diamond Valuing Company sort diamond rough. The part-
nership between De Beers and the government of Botswana is called Debswana.

During its formative years, De Beers owned some of the largest mines Ke y C o n c e p t s
in the world, and had partial ownership in others. Its own production made De Beers had full or partial
up a significant percentage of the world’s gem-quality diamond produc-
tion. This made control of diamond supply easier than it is today, when ownership of many mines, and
mine ownership is in the hands of many more companies. De Beers also bought rough from others through
invested in diverse industries outside the diamond trade to provide capital purchasing contracts.
to maintain diamond prices during recessions and times of low demand.
Some of its diamond buying was done through straightforward
purchasing contracts. One such contract was with Russian diamond
producers. As part of their agreement, the Russians committed a percentage
of their output to the CSO, but also retained a percentage for their own
marketing and production purposes.
Sometimes, De Beers entered into formal partnerships with other pro-
ducers, including government agencies. One of these partnerships was
with the government of Botswana. It was called Debswana, and it still
exists today. De Beers and the government share operating expenses and
profits. Another partnership, called Namdeb, operates coastal diamond
mines in Namibia.

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 DIAMONDS AND DIAMOND GRADING 2

Theft, Smuggling, and Illicit Diamond Buying

Diamonds are small, valuable, and easy to hide. As
a result, illegal mining, theft, and smuggling are
inevitable, and have been since the first diamonds
were unearthed.
Illicit diamond buying, or IDB, added a new
dimension to simple theft by creating a legitimate
outlet for stolen diamonds. Workers within the
mines sometimes stole diamonds on their own, but
they usually smuggled them to an outsider who
paid them in cash or gold. Because the outsider
paid such a small percentage of the diamonds’
actual worth, he made a big profit when he sold
them again—this time to a licensed diamond
buyer. Whether the diamonds came from the
worker or an intermediary, they ended up in the
hands of a licensed diamond buyer.
Buyers were licensed through formal arrange-
A teenage diamond smuggler and his ments with the mining companies. Some of the buyers involved in
younger brothers stand on the banks of IDB were blatantly dishonest, but some simply paid cash without
a river on the border between Angola asking where the diamonds came from. Because of their official sta-
and Namibia. If they can get their
diamonds to a licensed buyer, the tus, their possession of the stolen property made it legitimate as long
diamonds will become part of the as no one guessed its original source. The licensed buyers profited
legitimate market. most from the arrangement. They sold their diamonds at close-to-
market rates and profited from others’ dishonesty.
IDB’s threat was not so much from the loss of stones, but from
the flood of lower-priced diamonds. Even by the time stolen dia-
monds reached the legitimate market, their prices were lower than
the legally mined and traded rough. As a result, they threatened the
price stability of legitimately traded diamonds.
To combat IDB, early diamond officials passed laws demanding
severe and immediate punishment for anyone engaging in the
practice. But the laws weren’t enough to stop the flow entirely, so
diamond dealers and cutting firms, as well as the CSO, set up their
own buying offices. They felt it was better to pay competitive prices
for illicit diamonds and to take them out of circulation than to lose
them and, at the same time, face competition from the cheaper
diamond prices in the IDB market.

The CSO maintained satellite buying offices in Antwerp, Tel Aviv, and
throughout Africa. They were especially important in areas where alluvial
mining was done largely by individual diggers. With so many independents,
it was difficult to buy on a large-scale contract basis and almost impossible
to control distribution.

24
 BIRTH OF THE MODERN DIAMOND INDUSTRY

Natural light was traditionally used for carefully inspecting and evaluating rough diamonds.

HISTORY OF ROUGH DIAMOND DISTRIBUTION

■ What route did diamonds take from the mine to the wholesaler?
■ How did the CSO’s wholesale system operate?
■ How did political changes affect the modern diamond industry?

Once most rough diamonds were unearthed, they followed a preset path, Diamond pipeline—The path
known as the diamond pipeline. The CSO bought rough from diamond diamonds followed from the
producers all over the world. Purchasing negotiations and sales took mine to the consumer.
place in the producing countries, where each company showed carefully
selected samples to CSO representatives. The samples reflected the
overall value of the producer’s output so both parties could agree on an
accurate, fair price.
Much of the diamond pipeline still functions in the same way, but as you’ll
learn in the next assignment, the industry experienced dynamic changes in
the twenty-first century. Understanding the pipeline’s history and the philo-
sophy behind it will help you understand the new directions it’s taking.

SORTING ROUGH
After gathering the rough it mined or purchased, De Beers sorted it into Ke y C o n c e p t s
14,000 different categories, based on various combinations of size, shape,
Rough is sorted into categories
clarity, and color. Today, the number of categories is closer to 16,000, but
the basic process is the same. Some of the sorting factors are similar to based on size, shape, clarity, and
those for grading polished stones, but there are some differences. color.

25
 DIAMONDS AND DIAMOND GRADING 2

India is one of the industry’s cutting centers for smaller diamonds. Modern, semi-automated diamond cutting
replaced manual operations in the late 1980s.

Unless the inclusions are very large, for example, clarity factors are
more difficult to detect in rough than in polished goods. Color is tricky,
too. Often, the color is concentrated on the surface of the crystal or in
areas that might be lost or reduced in cutting.
Diamond sorters follow some standards that are unique to rough.
Shape is one of them. Two rough diamonds might be the same color and
clarity and equal in weight. Yet one might be worth much more than the
other because of its shape. That’s because some shapes yield more
Thomas Hunn valuable finished diamonds than others. You’ll learn more about this in
Because of diamond’s extreme hard- Assignments 7 and 9.
ness, industrial diamonds often end up
on drilling tools like this dentist’s burr. Industrial diamonds have their own market segment. Some applica-
tions require whole single crystals, but the largest volume consumed is
abrasive grit. Most industrial diamond grit is processed and sold by
Debid, but some clients purchase a few higher-quality single crystals for
specific industrial uses. (A great majority of the industrial diamond in
current use is synthetic diamond, which you will learn about in
Assignment 19.)
Gem-quality rough followed a different route after it was sorted. Some
of it went into the CSO stockpile. The rest followed the pipeline to the
industry’s cutting centers: Antwerp, Belgium; Tel Aviv, Israel; New York,
US; Mumbai, India; Bangkok, Thailand; and others.

26
 BIRTH OF THE MODERN DIAMOND INDUSTRY

SIGHTS AND SIGHTHOLDERS Sight—Trading event where

selected clients buy rough
The CSO’s system of selling gem-quality rough to dealers and manufac-
diamonds.
turers has a long history. Starting in 1939, De Beers set up trading events
called sights for the purpose of selling gem-quality rough to selected deal- Sightholder—A diamond manufac-
ers and manufacturers. Each sight lasted a week, and there were 10 each turer or dealer invited by De
year. The major sights took place in London, and smaller ones in Lucerne Beers to buy rough diamonds.
and Johannesburg.
Attendance was by invitation only, and those invited were called
sightholders. Sightholders were appointed by De Beers. There have been
as many as 300 and as few as 120 sightholders worldwide. Most were
major manufacturers, but some were sightholding dealers who resold
rough to smaller companies.
Several independent brokerage firms acted as agents between sighthold-
ers and the CSO. Brokers kept their clients informed about CSO policies,
which changed from time to time to reflect market conditions. Brokers also
passed along their sightholders’ requests for a given quantity and type of
diamond rough. The brokers’ commissions were based on their clients’
purchases.
Diamond brokerage firms also recommended potential sightholders to
the CSO, which investigated all candidates. A sightholder’s required qual-
ifications included an excellent reputation in the industry, the financial
strength to make large purchase commitments, and reliable distribution
outlets for polished goods. Some sightholder candidates were rejected

The CSO provided sightholders with private showing rooms. Each one was equipped with a worktable, a
lamp, a scale, and a phone.

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 DIAMONDS AND DIAMOND GRADING 2

outright; some who showed potential were advised on ways to improve

The Single-channel Diamond Market their operations. Candidates who served new or underserviced markets
were more likely to be accepted than those from already well-represented
Independent De Beers Mines Open-market areas.
Producers Ownerships and Purchases
Partnerships Individual Sellers Once accepted, sightholders were rarely dropped, unless their activities
went against the industry’s best interests. During the so-called “diamond
investment boom” of the late 1970s, demand for rough of any quality was
extremely high. This was especially true of high-quality diamonds. Some
sightholders took advantage of the situation. They immediately resold their
sight selections at higher prices than De Beers had been asking for the same
goods. This was a violation of the sightholders’ agreements with De Beers.
De Beers The CSO dropped many clients who resold sights in this way.
Central Selling Organisation About three weeks before a sight, sightholders consulted with their
Sorting and Sales brokers and applied for a quantity and assortment of goods that met their
needs. CSO personnel reviewed all requests and put together a selection
for each sightholder. Sightholders viewed their selections in private show-
ing rooms. Each room was equipped with a worktable, a lamp, a scale,
and a phone.
Sightholders The CSO tailored each parcel to a sightholder’s expressed needs as
Manufacturers and Dealers
closely as possible, so sightholders rarely rejected a parcel. Minor
negotiations sometimes took place if a sightholder felt a selection didn’t
Jewelry Manufacturers contain the requested mix of diamonds.
Even after sightholders accepted their sights, they remained in the pos-
Retail Jewelers and Consumers session of the CSO. Sightholders paid for them, in full, within seven days.
After that, the stones were sent directly to them by airmail or courier, in a
prepackaged parcel called a sight box.
A secondary market for rough also existed. Many small-scale manu-
The operation of the single-channel
diamond market was simple. Diamonds facturers bought from sightholding dealers, who were allowed to resell
from mines all over the world were their rough. Dealers’ boxes contained a wider variety of diamonds than
sorted and sold through a single the boxes sold to manufacturers. This allowed the dealers to re-sort the
agency: the CSO. This has changed in
recent years, with the appearance of diamonds into smaller, more customized lots for their clients.
independent mines and countries with Rough diamonds over 10.80 cts. were not usually included in sights
their own diamond-marketing systems.
because only about half of the sightholders were interested in—or even
capable of handling—large stones. These stones were called specials, and
De Beers offered them individually.
Special—A rough diamond over
10.80 cts., sold separately to a There was a bottom limit on the prices of specials, but otherwise they
sightholder who specializes in were the only items open to price negotiation, and clients were free to
larger stones. accept or reject them.

Ke y C o n c e p t s THE CHANGING DIAMOND MARKET

At a sight, the CSO presented a By the 1990s, diamond mining had expanded worldwide. Twentieth
customized selection of diamonds century discoveries of rich deposits in Russia, Australia, and Canada
began to dilute southern Africa’s role as the world’s main supplier of
to each sightholder for acceptance.
rough diamonds. Political changes also affected De Beers’ role in the
market.

28
 BIRTH OF THE MODERN DIAMOND INDUSTRY

The large diamond in this mixed parcel of rough is called a special because it weighs more than 10.80
cts. De Beers sells specials separately to its interested sightholders.

Single-channel marketing is experiencing many changes in the twenty- Ke y C o n c e p t s

first century. Some diamond-producing countries are developing their The early twenty-first century brought
own export markets and their own internal cutting industries. The grow-
dynamic changes to the global dia-
ing global economy has created some dynamic changes of its own. In the
next assignment, you’ll learn about how these influences are affecting the
mond market.
diamond market as it moves into the future.

29
 DIAMONDS AND DIAMOND GRADING 2

Ke y C o n c e p t s
Abundant South African diamond sources appeared in the late Military needs during World War II heightened demand for
1800s, just as diamond demand broadened. industrial diamond rough.

The diamond rush began with the discovery of the Star of De Beers had full or partial ownership of many mines, and
South Africa in 1869. bought rough from others through purchasing contracts.

Early South African diamond fields contained hundreds of Rough is sorted into categories based on size, shape, clarity,
small, individually owned and operated claims. and color.

Cecil Rhodes wanted to stabilize diamond prices, so he At a sight, the CSO presented a customized selection of
started by trying to control production. diamonds to each sightholder for acceptance.

Cecil Rhodes established De Beers Consolidated Mines Ltd. The early twenty-first century brought dynamic changes to the
in 1888 to direct mining operations. global diamond market.

When it couldn’t own every mine, De Beers began buying

rough from other producers to safeguard diamond prices and
ensure market stability.

Key Terms
Central Selling Organisation (CSO)—An agency Sight—Trading event where selected clients buy
designed to purchase, sort, evaluate, and sell rough rough diamonds.
diamonds.
Sightholder—A diamond manufacturer or dealer
Digger—An independent diamond prospector. invited by De Beers to buy rough diamonds.

Dry diggings—A prospector’s term for diamond Single-channel marketing—A direct, centrally
deposits away from water. controlled marketing route for rough diamonds.

London Diamond Syndicate—A group of diamond Special—A rough diamond over 10.80 cts., sold
merchants that united in 1890 to buy and sell rough separately to a sightholder who specializes in
diamonds. larger stones.

Diamond pipeline—The path diamonds followed from

the mine to the consumer.

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

ASSIGNMENT 2

QUESTIONNAIRE

Each of the questions or incomplete statements below is followed by several possible answers. Choose
the ONE that BEST answers the question or completes the statement. Then place the letter (A, B, C, or D)
corresponding to your answer in the blank at the left of the question.
If you’re unsure about any question, go back, review the assignment, and find the correct answer. When
you’ve answered all the questions, transfer your answers to the answer sheet.

________1. Before the discovery of South Africa’s diamond deposits, the world’s two major
producers were India and
A. Brazil.
B. Russia.
C. Australia.
D. Venezuela.

________2. Diamond sources started appearing in South Africa during the

A. 1740s.
B. 1820s.
C. 1860s.
D. 1910s.

________3. The Central Selling Organisation was a

A. diamond mining company.
B. major diamond manufacturer.
C. rough diamond distribution agency.
D. diamond industry public relations service.

________4. The South African diamond rush was sparked by

A. the arrival of Cecil Rhodes.
B. political changes in Great Britain.
C. reduced supply of Indian diamonds.
D. the discovery of the Star of South Africa.

CONTINUED NEXT PAGE...

IF YOU NEED HELP: Contact your instructor through the GIA Virtual Campus, or call 800-421-7250 toll-free in the US and Canada, or 760-603-4000;
after hours you can leave a message.

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DIAMONDS AND DIAMOND GRADING 2

________5. The soft, diamond-bearing material near the surface of a diamond field was named
A. blueground.
B. easyground.
C. yellowground.
D. shallowground.

________6. Cecil Rhodes’ main competitor in his early attempts to control diamond production was
A. Barney Barnato.
B. Ernest Oppenheimer.
C. the Diamond Trading Company.
D. an independent diggers’ association.

________7. Who established De Beers Consolidated Mines Ltd. in 1888?

A. Cecil Rhodes
B. Barney Barnato
C. Harry Oppenheimer
D. A Dutch farmer named De Beers

________8. De Beers Consolidated Mines Ltd. was named after

A. the president of South Africa.
B. the man who found the Eureka Diamond.
C. the district where the Star of South Africa was found.
D. the owners of a farm where one of the first diamond rushes took place.

________9. The group that united in 1890 to buy and sell all of the output of the major diamond
producers, including De Beers, was the
A. French Company.
B. Dutch East India Company.
C. Diamond Trading Company.
D. London Diamond Syndicate.

________10. Oppenheimer’s answer to low diamond demand in the 1930s was to

A. advertise heavily.
B. reduce diamond prices.
C. shut down operations at De Beers mines.
D. stop buying diamonds from outside sources.

CONTINUED NEXT PAGE...

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 BIRTH OF THE MODERN DIAMOND INDUSTRY

________11. The Diamond Information Center and the Diamond Promotion Service were created to
A. assist in diamond marketing efforts.
B. raise funds for diamond exploration.
C. lobby for increased diamond mining.
D. train diamond cutters and manufacturers.

________12. The path diamonds followed from mine to consumer was called the
A. retail route.
B. sight system.
C. diamond track.
D. diamond pipeline.

________13. Sightholders purchase diamond rough by

A. going directly to the mines.
B. attending invitation-only trading events.
C. selecting from lists sent out by De Beers.
D. contacting other sightholders in their area.

________14. De Beers requires its sightholders to have an excellent reputation in the industry and
A. a history of advertising extensively.
B. the ability to cut various types of rough.
C. ownership of a large chain of retail stores.
D. the financial strength to make large purchase commitments.

________15. In the diamond trade, the word “specials” refers to

A. annual diamond sales events.
B. parcels of 5-ct. to 8-ct. rough.
C. diamond rough over 10.80 cts.
D. discounted selections of rough diamonds.

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 DIAMONDS AND DIAMOND GRADING 2

PHOTO COURTESIES
The Gemological Institute of America gratefully acknowledges the following people and organizations
for their assistance in gathering or producing some of the images used in this assignment:
Department of Library Services, American Museum of Natural History, 17 (bottom)
Diamond Trading Company, 5 (both), 6 (all), 11 (top left, bottom), 13, 14, 16 (both), 17 (top), 18, 20, 22,
23, 25, 29
Robert Mouawad, 11 (top right)

34
 1. Introduction: Beyond the Essentials

2. Birth of the Modern Diamond Industry

3. The Modern Diamond Market

4. How Diamonds Form

5. Exploring for Diamonds

6. Diamond Mining

7. The Diamond Crystal

8. Diamonds and Light

9. The Evolution of Diamond Cutting

10. Finding and Identifying Clarity

Characteristics

11. Grading Clarity

12. Diamonds and Color

13. Grading Color

14. Grading Proportions—Table, Crown,

and Girdle

15. Grading Proportions—Pavilion and

Culet—and Evaluating Finish

16. Grading Fancy Cuts

17. Estimating Weight, Recutting, and

Repolishing

18. Diamond Simulants

19. Synthetics and Treatments

20. Succeeding in the Marketplace