ON YOUR MARKS GET SET – OMEGA!

Rough diamond octahedron in kimberlite.

Today, diamonds are found not only in the primary deposits, ie, the kimberlitic rocks, but also in rivers and old river terraces (called alluvial diamonds), as well as in beach gravels and in the deeper ocean (called marine diamonds), where they are embedded in semi-consolidated sediment on the sea floor. Those diamonds of an irregular shape or with internal cracks could not withstand the abrasive nature of their transport by rivers or ocean currents. The best-formed crystal, and those with smooth surfaces, survived the journey to the sea where the action of waves and sea currents concentrated them in layers and around underwater boulders.

The diamond deposits on the South African west coast, and those in the deeper Atlantic waters, produce mainly gem-quality diamonds, whereas the diamond production from kimberlitic volcanoes are normally about 10% gem- quality stones and the rest of industrial quality.

2 000 YEARS OF DIAMOND TRADING

Diamonds have been sought-after as the rarest and most precious gems for more than 2 000 years. For most of the early centuries, diamonds were mined only in the Golconda area of India and were used as adornments by the rich and powerful.

The Phoenicians were the early forerunners of the diamond houses of today. They were the first to travel to the East to bring back diamonds and jewellery that they traded along the borders of the Mediterranean Sea.

Although some jewellery containing rough diamonds date from Roman and Greek times, these civilisations did not develop a diamond trade of any significance. Not until many centuries later did Venetian jewellers and glass-cutters discover the craft of polishing the hardest material on earth. For the first time, diamonds began to be valued for their beauty, as well as their rarity and exceptional hardness.

The Frenchman, Jean-Baptiste Tavernier, can truly be called the father of the diamond trade as we know it today. He made six trips to India during his lifetime (1605-1689) and bought many famous diamonds that he sold to the monarchs of Europe.

During the 17th century, England became the largest importer of Indian diamonds. Towards the end of the century, the Indian mines began to show signs of exhaustion and the price of diamonds soared as a result.

Jean-Baptiste Tavernier

At the same time, an important new find was uncovered in Brazil that yielded gems of exceptional quality. However, 100 years later, the discovery of diamonds in South Africa that could be mined much cheaper caused the near-collapse of the Brazilian industry. A number of important discoveries, such as the alluvial diamond fields of Lichtenburg and the marine diamond deposits on the Atlantic coast, followed.

With each new discovery, the market anticipated an overproduction and reacted accordingly. It was Cecil John Rhodes who realised that the only way to control the wide fluctuations that occur in diamond prices was to control production at source. With this in mind, he amalgamated the various South African producers into the company known today as De Beers. He realised that a stable diamond price benefited everyone concerned with diamonds - from the producer, dealer, cutter and jeweller to the final consumer. This original policy of Rhodes was maintained and strengthened by the Oppenheimer family, who became the owners of De Beers Consolidated Mines.

In 1930, the world diamond industry was in danger of complete collapse. The supply of diamonds had increased sharply in 1927 and the situation reached a crisis level when, in 1929, the world entered the Great Depression. De Beers then formed the Diamond Corporation to act as the single channel through which most of the world’s diamond production would be sold. This corporation entered into an agreement with the major producers to purchase their diamonds and to supply the market in accordance with the demand.

In 1934, the Diamond Trading Company (DTC) was formed to carry out the specific task of sorting, valuing and selling rough diamonds. Through the skills, organisation and financial strength of these companies - known as the Central Selling Organisation (CSO) - De Beers maintained stability in the diamond industry and established consumer confidence in diamonds as objects of great beauty and lasting value.

On your marks, get set – Omega!

It may be a little later than planned, but the 2020 Tokyo Olympic Games are fi nally taking place later this month – and while the athletes make their fi nal preparations, the offi cial timekeeper unveiled a very special timepiece as a tribute to the occasion.