Podcast
Questions and Answers
What is the primary challenge faced by diamond mining companies?
What is the primary challenge faced by diamond mining companies?
Which two companies supply the majority of the world’s rough diamonds by value?
Which two companies supply the majority of the world’s rough diamonds by value?
What is the purpose of rough sorting in the diamond value chain?
What is the purpose of rough sorting in the diamond value chain?
Which segment of the diamond value chain is characterized by the highest levels of risk?
Which segment of the diamond value chain is characterized by the highest levels of risk?
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What emerging trend has significantly impacted polished diamond sales?
What emerging trend has significantly impacted polished diamond sales?
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What does the term 'bort' refer to in the diamond industry?
What does the term 'bort' refer to in the diamond industry?
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What is the primary function of the Diamond Trading Company (DTC)?
What is the primary function of the Diamond Trading Company (DTC)?
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Which historical figure is associated with the establishment of De Beers Consolidated Mines Ltd.?
Which historical figure is associated with the establishment of De Beers Consolidated Mines Ltd.?
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What is meant by 'single-channel marketing' in the diamond value chain?
What is meant by 'single-channel marketing' in the diamond value chain?
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What challenge did De Beers face with the emergence of new diamond producers?
What challenge did De Beers face with the emergence of new diamond producers?
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What is the purpose of the 'sight' event in the diamond trading process?
What is the purpose of the 'sight' event in the diamond trading process?
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What does the term 'downstream' refer to in the diamond value chain?
What does the term 'downstream' refer to in the diamond value chain?
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Which organization functioned as the sales arm of De Beers before the Diamond Trading Company?
Which organization functioned as the sales arm of De Beers before the Diamond Trading Company?
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What is an "auction"?
What is an "auction"?
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What is the definition of Beneficiation ?
What is the definition of Beneficiation ?
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A Diamond Exchange is.........
A Diamond Exchange is.........
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What is a significant benefit of long-term contracts in rough diamond sales?
What is a significant benefit of long-term contracts in rough diamond sales?
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Which process in the diamond value chain is essential for enhancing a diamond’s visual appeal?
Which process in the diamond value chain is essential for enhancing a diamond’s visual appeal?
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How has online trading influenced the diamond industry?
How has online trading influenced the diamond industry?
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What key aspect should jewelers recognize to maintain their customer base in the diamond market?
What key aspect should jewelers recognize to maintain their customer base in the diamond market?
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Which segment of the diamond value chain showcases the highest levels of profitability?
Which segment of the diamond value chain showcases the highest levels of profitability?
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What was the primary effect of Cecil Rhodes's production control in the diamond industry?
What was the primary effect of Cecil Rhodes's production control in the diamond industry?
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Which diamond quality classification is specifically intended for use in jewelry?
Which diamond quality classification is specifically intended for use in jewelry?
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What was the role of the Central Selling Organisation (CSO) in the diamond industry?
What was the role of the Central Selling Organisation (CSO) in the diamond industry?
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Which term describes the retail segment of the diamond value chain?
Which term describes the retail segment of the diamond value chain?
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What major historical event marked the beginning of the diamond rush?
What major historical event marked the beginning of the diamond rush?
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Which concept refers to a strategy where a company operates across various segments of the value chain?
Which concept refers to a strategy where a company operates across various segments of the value chain?
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What is the significance of the Diamond Trading Company's (DTC) relationship with De Beers?
What is the significance of the Diamond Trading Company's (DTC) relationship with De Beers?
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Which statement about the secondary market in diamonds is true?
Which statement about the secondary market in diamonds is true?
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What time of the organization is the "Major"?
What time of the organization is the "Major"?
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The London Diamond Syndicate was formed as a ....
The London Diamond Syndicate was formed as a ....
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What type of mine is a "Dry Dig" ?
What type of mine is a "Dry Dig" ?
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Industrial Diamonds are for what purpose ?
Industrial Diamonds are for what purpose ?
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What type of buyer is a Sightholder?
What type of buyer is a Sightholder?
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What is the definition of "Upstream"?
What is the definition of "Upstream"?
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How do you define Value-Adding Process?
How do you define Value-Adding Process?
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How many segments of the diamond value chain are there?
How many segments of the diamond value chain are there?
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What forced the integration of the multi-channel ?
What forced the integration of the multi-channel ?
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What country was the only diamond source until the early 1800 century ?
What country was the only diamond source until the early 1800 century ?
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Who was the world's leading diamond producer from the early 1700s to the late 1800s?
Who was the world's leading diamond producer from the early 1700s to the late 1800s?
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In the new era what platform is the most important marketing platform?
In the new era what platform is the most important marketing platform?
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Outside of Social Media, what is another important jewelry retail avenue ?
Outside of Social Media, what is another important jewelry retail avenue ?
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What advances affected the entire diamond supply chain?
What advances affected the entire diamond supply chain?
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How did De Beers solidified its single-channel marketing strategy?
How did De Beers solidified its single-channel marketing strategy?
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What global campaign established the tradition of the diamond engagement ring worldwide?
What global campaign established the tradition of the diamond engagement ring worldwide?
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How do Sorters categorize gem-quality diamonds?
How do Sorters categorize gem-quality diamonds?
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What opportunity do rough diamond auctions (tenders) provide ?
What opportunity do rough diamond auctions (tenders) provide ?
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Where in the world are most diamonds cut and polished?
Where in the world are most diamonds cut and polished?
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What market is the number jewelry-consuming market in the world, with China coming in second?
What market is the number jewelry-consuming market in the world, with China coming in second?
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What market is a good indicator of a diamond’s value?
What market is a good indicator of a diamond’s value?
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Study Notes
Key Terms
- Auction: A competitive process where rough diamonds are sold to the highest bidder.
- Beneficiation: A country's commitment to reserve resources for economic growth.
- Bort: A form of industrial diamond, often included in crystals, ranging from yellow, gray, to brown.
- Central Selling Organisation (CSO): An agency that served as De Beers' sales arm.
- Diamond Exchange: A membership-based entity facilitating diamond trading.
- Diamond Trading Company (DTC): The marketing and sales arm of De Beers (formerly the CSO).
- Downstream: The retail portion of the diamond value chain.
- Dry Diggings: Diamond deposits not located near water.
- Gem-Quality Diamonds: Diamonds meeting specific criteria for jewelry use.
- Industrial Diamonds: Diamonds suited for industrial applications.
- London Diamond Syndicate: A group of diamond merchants formed in 1890 to buy and sell rough diamonds.
- Major: A large-scale company leading in diamond mining.
- Secondary Market: The market for reselling gems and jewelry.
- Sight-Rough: Diamond sales event where long-term customers buy from producers with contracts.
- Sightholder: Buyer with a contract to purchase rough diamonds from producers.
- Single-Channel Marketing: Centrally controlled marketing strategy for rough diamonds.
- Upstream: Segment of the value chain focusing on rough diamond mining and distribution.
- Value-Adding Process: Activities that enhance a product's value.
- Vertical Integration: Business strategy involving operation in multiple segments of the value chain.
Key Concepts
- India's Diamond History: India was the primary source of diamonds until the 18th century.
- Brazil's Diamond Production: Brazil was a leading diamond producer from the early 1700s to the late 1800s.
- Cecil Rhodes and De Beers: Cecil Rhodes established De Beers to control diamond prices; this company was significant for stabilizing pricing and establishing a centralized trading model.
- Diamond Rush: The diamond rush began with the discovery of the Star of South Africa.
- De Beers Dominance: De Beers solidified its single-channel marketing and supply control to significantly influence the diamond market.
- De Beers Global Campaign: De Beers' campaigns established the diamond engagement ring tradition worldwide.
- Challenges to De Beers' Control: The rise of other producers made it difficult for De Beers to control the diamond supply.
- Evolution of the Diamond Value Chain: The diamond value chain includes roughly six segments. Difficulty in diamond mining operations and managing investment risk are some of the major obstacles to diamond mining firms today.
- Rough Diamond Supply: ALROSA and De Beers supply over half of the world's rough diamonds.
Diamond Sales and Value Addition
- Rough Sorting Objective: The goal of rough sorting is to facilitate sales.
- Diamond Categorization: Sorting categorizes diamonds based on factors like weight, shape, clarity, and color.
- Long-Term Contracts: Long-term diamond sale contracts benefit buyers and sellers; their reliability is a key advantage to the structure.
- Rough Diamond Auctions: Rough diamond auctions allow buyers direct access to rough diamonds from a producer.
- Diamond Cutting and Polishing: Cutting and polishing significantly enhance diamond beauty.
- Diamond Trading and Market: Diamond cutting and polishing are a significant part of the Indian economy. Online sales of polished diamonds are growing.
- Challenges in Diamond Trading: A limited number of players participate in upstream segments of the industry, impacting resources, risk, and profit potential. Profiteering is often found at the two ends of the supply chain.
- Technological Advancements: Technology significantly impacts the diamond supply chain, and technological advancements continue to be important in the current market.
- Market Dynamics: The US and Greater China are the leading diamond consumer markets.
- Importance of Social and Internet Media: Social media and the internet serve as significant advertising platforms for jewelers.
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Description
Test your knowledge of essential terms related to the diamond industry. This quiz covers concepts such as auctions, beneficiation, and the roles of various organizations within the diamond market. Perfect for anyone looking to deepen their understanding of diamond trading.
