The Modern Diamond Market (Chapter 3, Key Terms & Key Concepts) Flashcards
A commitment to reserve a portion of
the resources derived from any country for the economic development of that country
Beneficiation
De Beers’ formalized commitment of itself and its sightholders to the
highest ethical standards.
Best Practices Principles (BPP)
A traditional store consisting of walls and a fixed location.
Brick-and-mortar retailer
Rough diamonds used by rebel
movements or their allies to finance conflict aimed at
undermining legitimate government
Conflict diamonds
A city, region, or country with a large
number of gemstone manufacturer
Cutting center
Business that sells to consumers
via television or computer.
Electronic retailer
Diamond industry program
designed to ensure that diamonds crossing international borders are legitimate and do not fund civil
conflict or terrorism
Kimberley Process (KP)
Program adopted by De Beers
in 2001, in which it required its sightholders to help
increase market demand for diamonds.
Supplier of Choice
Program adopted by De
Beers in 2007 to answer critics and resolve shortcomings of its original SOC program.
Supplier of Choice 2
Involvement of a business or
industry in all aspects of its product’s market.
Vertical integration
The Central Selling Organization (CSO) controlled diamond prices by buying and holding
supplies until demand increased.
Key Concept
A finished piece of diamond jewelry has much greater value
than a rough diamond crystal.
Key Concept
The low-wage Indian cutting industry allowed Argyle’s small,
lower-quality stones to be processed for the jewelry market.
Key Concept
Beneficiation helps countries exercise greater control over
their natural mineral resources.
Key Concept
New diamond supplies combined with major political and
economic events led De Beers to institute dramatic changes.
Key Concept
Supplier of Choice (SOC) sightholders had to demonstrate the ability to sell
diamonds and to add value to those diamonds in some way.
Key Concept
De Beers’ efforts at reinvention proved to be an evolving
process
Key Concept
De Beers’ advocacy of corporate responsibility had a more
profound impact on the diamond market than its advocacy of
branding.
Key Concept
India’s diamond manufacturing industry makes it a major
force in the new multi-channel market.
Key Concept
Electronic retailing showed an ability to sell a huge volume of
diamonds without relying on the “personal touch.”
Key Concept
The future of the diamond market in manufacturing and
consumption may be in Asia, especially China and India.
Key Concept
A bourse is a(n)
club where diamond dealers meet to sell, trade, and share industry news.
Which diamond mine’s huge production influenced the world market in the late 1980s?
Argyle
By 2004, more than 90 percent of manufacturing for the diamond market was done in
India.
