sort/grade diamonds
Sorting and Grading of Diamonds
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 small diamonds in a Botswanan operation.
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.