Birth of the Modern Diamond Industry (Chapter 2, Key Terms & Key Concepts)

Question 1

An agency
designed to purchase, sort, evaluate, and sell rough diamonds.

Answer 1

Central Selling Organisation (CSO)

Question 2

An independent diamond prospector

Answer 2

Digger

Question 3

A prospector’s term for diamond
deposits away from water.

Answer 3

Dry diggings

Question 4

A group of diamond
merchants that united in 1890 to buy and sell rough
diamonds.

Answer 4

London Diamond Syndicate

Question 5

The path diamonds followed
from the mine to the consumer

Answer 5

Diamond pipeline

Question 6

Trading event where selected clients buy
rough diamonds.

Answer 6

Sight

Question 7

A diamond manufacturer or dealer
invited by De Beers to buy rough diamonds.

Answer 7

Sightholder

Question 8

A direct, centrally
controlled marketing route for rough diamonds.

Answer 8

Single-channel marketing

Question 9

A rough diamond over 10.80 cts., sold
separately to a sightholder who specializes in
larger stones.

Answer 9

Special

Question 10

Abundant South African diamond sources appeared in the late
1800s, just as diamond demand broadened.

Answer 10

(Key Concept)

Question 11

The diamond rush began with the discovery of the Star of
South Africa in 1869.

Answer 11

Key Concept

Question 12

Early South African diamond fields contained hundreds of
small, individually owned and operated claims.

Answer 12

Key Concept

Question 13

Cecil Rhodes wanted to stabilize diamond prices, so he
started by trying to control production.

Answer 13

Key Concept

Question 14

Cecil Rhodes established De Beers Consolidated Mines Ltd.
in 1888 to direct mining operations

Answer 14

Key Concept

Question 15

When it couldn’t own every mine, De Beers began buying
rough from other producers to safeguard diamond prices and
ensure market stability.

Answer 15

Key Concept

Question 16

Military needs during World War II heightened demand for
industrial diamond rough.

Answer 16

Key Concept

Question 17

De Beers had full or partial ownership of many mines, and
bought rough from others through purchasing contracts.

Answer 17

Key Concept

Question 18

Rough is sorted into categories based on size, shape, clarity, and color.

Answer 18

Key Concept

Question 19

At a sight, the Central Selling Organization (CSO) presents a customized selection of
diamonds to each sightholder for acceptance.

Answer 19

Key Concept

Question 20

The early twenty-first century brought dynamic changes to the
global diamond market.

Answer 20

Key Concept

Question 21

The group that united in 1890 to buy and sell all of the output of the major diamond producers, including De Beers, was the

Answer 21

London Diamond Syndicate.

Question 22

The path diamonds followed from mine to consumer was called the

Answer 22

.
diamond pipeline.

Question 23

Cecil Rhodes’ main competitor in his early attempts to control diamond production was

Answer 23

Barney Barnato.

Question 24

Diamond sources started appearing in South Africa during the

Answer 24

1860s

Question 25

De Beers requires its sightholders to have an excellent reputation in the industry and

Answer 25

the financial strength to make large purchase commitments/retest

Question 26

The South African diamond rush was sparked by

Answer 26

the discovery of the Star of South Africa.

Question 27

Before the discovery of South Africa’s diamond deposits, the world’s two major producers were India and

Answer 27

Brazil.

Question 28

The Central Selling Organisation was a

Answer 28

rough diamond distribution agency.

Question 29

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

Answer 29

diamond rough over 10.80 cts.

Question 30

Who established De Beers Consolidated Mines Ltd. in 1888?

Answer 30

Cecil Rhodes

Question 31

De Beers Consolidated Mines Ltd. was named after

Answer 31

the owners of a farm where one of the first diamond rushes took place.

Question 32

The Diamond Information Center and the Diamond Promotion Service were created to

Answer 32

assist the company in its marketing efforts.

Question 33

The soft, diamond-bearing material near the surface of a diamond field was named

Answer 33

yellowground

Question 34

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

Answer 34

shut down operations at De Beers mines.

Question 35

Sightholders purchase diamond rough by

Answer 35

attending invitation-only trading events.