Diamonds Flashcards
(350 cards)
What is the significance of the Argyle mine?
the Argyle mine in Australia—caused dramatic growth in India’s diamond cutting industry, which processes large numbers of inexpensive diamonds. This made diamonds available to a wider consumer base.
Why are diamond grades important?
Diamond grades make it possible for people to discuss diamonds simply and concisely. Diamond grades can help you compare one diamond with another.
What are diamond grades used for?
Diamond grades have many different uses. For gemological laboratories, grades are simply statements of diamond quality. Some people use grades to determine value and to decide whether or not to buy, or to match diamonds for jewelry. A diamond grade might be part of an appraisal, as one step in the evaluation of a finished piece of jewelry.
What are diamond reports used for?
A quality report from a reputable lab allows a retailer or dealer to choose a diamond without seeing it.
A report can also work the other way: You can check a diamond that’s accompanied by a quality report to make sure it matches its description. This protects you against switched stones.
What are wholesale price lists for?
a diamond professional can compare a diamond’s quality report to its listed value, determine the diamond’s fair price, and decide whether or not to buy or sell it.
The suggested prices depend very strongly on the market conditions that exist at a particular time.
How are small low quality diamonds graded?
it’s not worthwhile to spend a lot of time grading small, low- quality stones. A quick examination under a loupe is usually all they get.
How are small diamonds sorted and graded?
Small diamonds are often sorted rather than graded individually because it isn;t cost effective to grade them individually.
So the dealer might put them through a series of sieves and sort them by size, and then sort the various sizes into smaller piles based on color. The dealer might not even look for clarity characteristics. Parcels of melee are usually sold by clarity range—if the supplier is reputable, the dealer can trust that the diamonds in the parcel will be within the requested clarity range.
What are the benefits of having precisely matched diamonds in jewelry?
It’s easier to sell a well-finished piece of jewelry containing precisely matched diamonds—no matter what their clarity grade—because you can justify its price to your customers.
What is the most common type of appraisal?
The most common type is an appraisal for insurance replacement. This contains a description of the jewelry—everything from the Four Cs of the gems to the jewelry’s design to the karat weight of the metal. An insurance company can use the appraisal to replace the item if it’s lost or stolen.
Insurance replacement appraisals include a value for the jewelry item. That value might be quite different from an appraisal done to determine its liquidation value. Liquidation appraisals apply a value to the item for immediate sale.
Why are good quality diamonds so valuable?
The unique physical properties of gem-quality diamonds allow them to survive environmental forces better than any other gemstone.
How did abundant new diamond supplies affect the market?
Wider availability of diamonds to the public
When did India start trading diamonds and to whom?
4th century BC to India’s wealthy
When was the first South African Kimberline pipe discovered?
late 1800s
What is single channel marketing?
A direct, centrally controlled marketing route for rough diamonds
What is the Central Selling Organisation?
An agency designed to purchase, sort, evaluate, and sell rough diamonds.
For decades, the CSO served as the marketing and distribution channel for rough diamonds from mines all over the world.
How did the story of Africa’s Diamonds begin?
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.
What diamond started the rush in South Africa and where what is found?
The Star of the South was found in the Vaal river in 1869
What is a digger?
An independent diamond prospector
What is soft, diamond bearing ground near the surface called?
yellowground
What’s underneath yellowground?
blueground
Who consolidated all the mines in the Kimberly area into DeBeers Consolidated Mines LLC in 1888?
Cecil Rhodes
How much of the world’s diamond supply did DeBeers control by 1900?
By 1900, De Beers controlled an estimated 90 percent of the world’s production of rough diamonds. With what amounted to a production monopoly, Rhodes had reached his goal of controlling prices by controlling the supply
Who were the London Diamond Syndicate?
A group of diamond merchants that united in 1890 to buy and sell rough diamonds.
What was DeBeers marketing strategy?
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