Grailstones

The Diamond Life

Jewelry Appraisals WARNING ! This news video contains scenes of a violent and graphic nature that some viewers may find disturbing. It is intended to depict the extent of the brutalities inflicted upon the people of Sierra Leone. Viewer discretion is advised.

Wednesday, March 21, 2007

Where Do Diamonds Come From ?

Experiments and the high density of diamonds tell us that they crystallize at very high pressures. In nature this means that diamonds are created by geologic processes at great depth within Earth, generally more than 150 kilometers down, in a region beneath the crust known as the mantle. Other processes, explored later in this exhibition, bring diamonds to where people can find them.
This diagram shows the interior structure of Earth. The three concentric layers -- the core, mantle, and crust -- formed within a few hundred million years of Earth's coalescence 4.5 billion years ago. The core is primarily an iron-nickel alloy and makes up a large fraction of the mass of Earth. The vast mantle is sandwiched between the core and the thin crust and is composed predominantly of magnesium and iron silicate minerals. Our planet's crust is a thin, rocky skin. Diamonds can form in most of Earth's interior but not near its surface, where graphite is the stable form of carbon. Indeed, diamonds only survive at Earth's surface because great heat is required to break down the diamond structure.
The upper mantle is slightly plastic, which allows it to circulate slowly in a creeping, convective flow that helps drive the surface motion of Earth known as "plate tectonics."

The cross section shown here provides a closer look at Earth's crust and underlying mantle. The crust can be divided into ocean basins, underlain by a thin layer of dense, basaltic rock, and continents, formed of a much thicker but less-dense layer of granitic rocks. Just below the crust is the portion of the mantle called the lithosphere, which is rigid and acts like rock. Below this is the asthenosphere, a more plastic, flowing region that enables the overlying crustal plates to move in what is known as plate tectonics.

The plot of pressure and temperature shows the conditions at which either diamond or graphite exist. The general conditions present in the Earth are described by curved lines called geotherms. Note that there are two geotherms: Because the continental crust is old and thick, conditions are somewhat colder in and beneath it than beneath the much younger ocean basins. Diamonds can form at depths as shallow as 150 kilometers beneath the continental crust, while beneath oceans they need depths of at least 200 kilometers, as shown by the diamond boundary on the cross-section.

Sorting and Distributing Diamonds : Form The Mine To The Diamond Dealer

There are two aspects of moving diamonds from mine to dealer. The first is the fairly straightforward but important task of separating diamonds into gem-quality, near gem-quality, and industrial-grade diamonds. The second is the more intriguing aspect: the primary diamond marketing, which has been and still is largely controlled by De Beers Consolidated Mines, Ltd. through its majority control of the Central Selling Organization (CSO). The CSO sells a large percentage of mine production to diamond dealers; independent mines sell by closed bids and through private transactions.
Sorting occurs at every level of the market, from the mine to the jeweler. At the mine, the sorting depends on the sophistication of the operation and the size of production, but it is always based on grouping stones of like type. Diamonds are grouped into "sizes" -- more than one carat; "smalls" -- between 1 carat and 1/10th carat; and "sand," -- less than 1/10th carat, with some leeway for market pressures. Diamonds larger than about 15 carats are handled individually. Shape groups comprise "stones," "shapes," "cleavages," "macles," and "flats," describing characteristics familiar to the market. The ultimate purpose of sorting is to estimate an asking price for the rough diamonds.

After great swings in diamond prices, the Diamond Trading Corporation (DTC) was set up by De Beers in 1934 to handle the actual sales of diamonds. The DTC and the Diamond Producers' Association (the mine operators) form the nucleus of the Central Selling Organization. The CSO stabilizes prices in hard times and raises them in accord with inflation and demand during good times. It needs considerable wealth and stockpiles of diamonds to maintain this position, but this "single channel marketing" system has been an effective cartel. In the United States cartels are illegal, so De Beers cannot operate here. However, the company's interests are represented by a public relations office, the Diamond Information Center, and indirectly by the diamond dealers and jewelers who sell the gems.


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