Chapter 2 Flashcards

1
Q

Which country was only source for diamonds till 18th century?

A

India

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2
Q

Name 4 famous diamonds sourced from India?

A

Koh-i-Noor, Great Mogul, Hope, Dresden Green

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3
Q

Who wrote about visiting Krishna Valley diamonds mine in the 13 century?

A

Marco Polo

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4
Q

Which name was associated with fine quality diamonds?

A

Golconda

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5
Q

How long India was the only source for diamonds?

A

Almost 2,500 years, 800-600 BC to 18th century

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6
Q

Which country was the world’s leading diamond producer from the 1700’s to late 1800’s?

A

Brazil

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7
Q

When were earliest accounts of diamond discoveries in Brazil?

A

In lat 16th century.

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8
Q

When Brazil’s diamond sources were officially announced?

A

In 1792 after reports from colonial governor.

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9
Q

When Brazil’s diamond production reached its peak?

A

In the mid 1700s, more than 1.5 milion carats of diamonds were reportedly exported to Europe between 1732 and 1771.

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10
Q

In which time Brazil was the world’s leading diamond producer?

A

From the early 1700’s to the late 1800’s.

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11
Q

What discovery and where attracted prospectors to the area in Africa?

A

Discovery of the Star of Africa (The Dudley) at Zandfontein in 1869.

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12
Q

Prospector’s term for diamond deposits away from water?

A

Dry diggins

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13
Q

In which river bank Star of Africa has being found?

A

Vaal River

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14
Q

How much weighted Star of Africa?

A

83.50 ct

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15
Q

How many diggers came to dig for diamonds?

A

Around 10,000

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16
Q

How much Schalk van Niekerk payed to shepherd for the Dudley?

A

1 horse, 10 oxen, and 500 sheep (~150 pounds)

17
Q

How much Niekerk got for diamond?

A

11,200 £ which is now ~56,000 $.

18
Q

Why miners moved to dry diggings?

A

In riverbed they had to stand for hours and risk a flooded claim.

19
Q

How many miners worked in Kimberley area?

A

30,000 miners, 3600 tents over 42 acres area.

20
Q

How long Kimberley mine was in operation?

A

Between March 31, 1871 to August 4, 1914.

21
Q

How deep pit become?

A

240 meter deep, it’s named today “Big Hole”

22
Q

Why miners began to form partnerships and small companies?

A

Soft surface layer ran out, miners found hard rock which required more capital investments and and advanced equipment.

23
Q

Who stood out and became competitors?

A

Cecil Rhodes and Barney Barnato.

24
Q

By when Rhode’s company held all claims in the Beers mine?

A

By 1887

25
Q

Who was dominant shareholder in in Kimberley mine?

A

Barnato

26
Q

What was idea of Rhodes to stabilize prices of diamonds?

A

He developed concept of controlling of production.

27
Q

Why Rhodes his company De Beers Consolidated Mines Ltd.?

A

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

28
Q

When Rhodes est. his company?

A

On March 12, 1888.

29
Q

What is London Diamond Syndicate?

A

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

30
Q

What is CSO?

A

Central Selling Organization an agency that functioned as the sales arm of De Beers.

31
Q

What is DTC?

A

The marketing and sales arm of De Beers (the CSO was its predecessor.

32
Q

How centrally controlled marketing strategy for rough diamonds was called?

A

Single-channel marketing.

33
Q

What happened in 1890 in London?

A

A group of London diamond merchants united to form an organization known as the London Diamond Syndicate, which contracted to buy and sell all the output of major diamond producers, including De Beers

34
Q

Who assumed chairmanship in the De Beers when Great Depression hit in 1929?

A

Ernst Oppenheimer.

35
Q

What De Beers did to solidify its marketing strategy?

A

Through centralized control of rough diamond supply, buying, marketing, and sales.

36
Q
A