Diamonds

Diamond is the hardest known material. The diamond industry is separated into two major segments: (1) industrial and (2) gem. The major industrial use of diamonds is as a high-grade abrasive in a wide variety of applications for which no effective low-cost substitute is available. Table 15.4C.1 gives data on diamond production and on United States diamond imports. In both gem and industrial diamond production, but especially in the case of gems, the quantity of stones produced is not directly correlated to value, for the determination of value is markedly affected by quality. South Africa long has been the world leader in gem diamond production with an estimated production in 1968 (including South-West Africa) of about 4 million carats, equal to 43% of world production. During the past decade there has been a marked rise in gem diamond production in the USSR, so that nation is now the second-ranking world producer, with Angola (Portuguese West Africa) third. In natural industrial diamonds, the major production comes from Congo-Kinshasa (former Belgian Congo) which had a production of 15 million carats in 1968, equal to 47% of world production. In the past six years, there has been a remarkable increase of industrial diamond production in the USSR, which now ranks second with a production of 6 million carats, equal to about one-fifth of world production. South Africa now ranks third followed by Congo-Brazzaville and Ghana. No natural diamonds are produced in the United States. Since the discovery of an economical method for synthesizing small diamonds, there has been a rapid increase in synthetic production from 4 million carats in 1962 (1 carat equals 200 mg) to 11.5 million carats in 1968. Table 15.4C.1 gives the gradually increasing imports of industrial diamonds and indicates a relatively stable price. In 1968, the imports of industrial diamonds were 13.5 million carats with a value of $59.2 million. Table 15.4C.2 shows the rapidly increasing imports of cut and uncut gem diamonds into the United States. In 1968 the United States imported 2.5 million carats of uncut stones with a value of $166 million and 1.5 million carats of cut stones with a value of $175 million. Diamond marketing is dominated by DeBeers Consolidated Mines, Ltd., which, through subsidiaries, controls many of the major African diamond deposits. More important economically, however, through its Central Selling Organization, DeBeers markets 86% of the non-Communist world's natural diamonds, including most of those derived from deposits outside of corporate control. In 1967 the mines owned by DeBeers produced nearly 8 million carats, and the Central Selling Organization sold over $600 million in gem and industrial diamonds. The dominance of diamond sales by