Assignment 1 - Introduction

Question 1

What are the elements of the diamond industry?

Answer 1

• Exploration and mining
• Cutting
• Manufacturing
• Retail

Question 2

Why are diamond grades important?

Answer 2

Diamond grades provide a consistent, standardised way of communicating and comparing diamond quality

Question 3

What does a diamond report tell you?

Answer 3

A report lists the qualify factors repesented by the Four Cs: clarity, color, cut and carat. Large high-quality diamonds re graded much more thoroughly than small, low-quality ones.

Question 4

How do market factors affect diamond value?

Answer 4

Diamond grades are only part of the determination of diamond market value. The wholesale prices depend on the market conditions at the time of publishing.

Question 5

Someone who sells to retailers rather than directly to consumers

Answer 5

Wholesaler

Question 6

An estimation of the value of an article, usually for insurance purposes

Answer 6

Appraisal

Question 7

How are small, low-quality diamonds graded?

Answer 7

They are usually sorted rather than graded.

Question 8

Why are good-quality diamonds so valuable?

Answer 8

The huge financial costs involved in locating, developing and operating diamond mines are factors affecting diamond value.

Question 9

How did abundant new diamond supplies affect the market?

Answer 9

The new supplies made diamonds more affordable and abundant, but high quality diamonds remain quite rare.

Question 10

How does formation affect value?

Answer 10

Diamond’s specific formation conditions are directly responsible for its hardness and durability as a gem.

Question 11

What are the challenges of the modern diamond industry?

Answer 11

• Diamond identification, lab grown & simulant
• Detect Diamond treatments
• Origin & traceability