I Break Three Times Into Diamonds

Louis Kornitzer's book, Gem Trader, is partly autobiographical and partly woven round the lore of pearls. It's educational + explains the distribution chain of gems, as they pass from hand to hand, from miner to cutter, from merchant to millionaire, from courtesan to receiver of stolen goods, shaping human lives as they go + the unique characters in the industry.

(via Gem Trader) Louis Kornitzer writes:

What is this diamond, this substance of great price, in which so much capital is sunk and which has captured the imagination of the world? Every schoolboy knows that chemically it is pure carbon, like graphite, or black lead, and charcoal. It is the crystalline form of carbon produced at great pressures and high temperatures in the bowels of the earth. But a diamond crystal in the rough, before it is faceted and polished, is not attractive unless you know its cash value.

Apart from being practically the hardest substance known, topping the scale with the number 10—one degree harder than sapphire—diamond is also the most imperishable of all substances and the most lustrous when cut and polished. And yet it was almost unknown in Europe until comparatively recent times. The Greeks had an ‘adamas’, or diamond, literally ‘the invincible substance’. But it was a name they applied to anything very hard, some metals, for instance, or the emery stone, and the first specific reference to the diamond as the adamas is encountered in the writings of Manilius ( A.D. 16), who speaks of it as being more valuable than gold.

Eighty years later Pliny the naturalist speaks of diamond as being the most valuable gem known. He names several varieties, but only one, coming from India, can have been a true diamond. India, indeed, as far as we can tell, was the principal ancient source of diamonds, and even India did not produce many. Pliny’s ‘diamonds’ from Macedonia, Arabia, and Cyprus were almost certainly nothing of the kind.

Students of the Scriptures will be thinking of the High Priest’s breastplate (about which I had dreamed such a daring dream as a child). For diamonds are mentioned as having been one of the twelve precious stones with which it was set: the third stone in the second row, to be precise. And ‘diamond’ is certainly the correct translation of the Hebrew ‘yahalum’. But at that remote time there was no known method of engraving on diamond, and even today, with all the modern tools and methods at the disposal of the craftsman, the task is a most difficult one; yet upon the ‘diamond’ in the breastplate was engraved the name of one of the Hebrew tribes. That alone shows that the scriptural ‘diamond’ was not a diamond, unless you insist that many an art known to the ancients has had to be rediscovered in a later age which thinks itself more advanced.

All diamonds are extremely hard, but all diamonds are not of equal hardness. Those that come from Borneo, for instance, are somewhat harder than those found in Brazil or South Africa. The Australian diamond, too, is harder than the South African product. I remember well, many years ago, an Antwerp diamond cutter’s perplexity when having purchased a small parcel of rough diamond he and his men found they could make no headway with them. Why? Because the powdered diamond, the boart, they were using in the process of cutting and polishing, was of South African origin, whereas that parcel of rough stones came from Australia. Australian boart had to be procured before the work could proceed, and the diamond cutter was furious with the London dealer who had sold him the goods. He would indeed have brought an action against him, but the quarrel was composed by mutual friends. He had a real grievance, too, for Australia was then not generally known as a source of diamonds. But those who regularly handled Australian brut (rough diamonds) were fully aware of the difference in hardness, and consequently knew that any diamond cutter ignorant of the fact would be ‘up against it’.

Actually, although there is no natural substance harder than diamond, there have been produced certain alloys of tantalum which not only compete for wearing qualities with the hardest of all stones, but are even harder than diamond. Amongst the many opportunities to become rich that I have let slip through my fingers I must count the chance I once had to clean up a fortune out of tantalum.

I Break Three Times Into Diamonds (continued)

The Lemon Principle

It's interesting to study the asymmetric market information in the gem and jewelry sector + arts + other businesses + the lemon principle. It's all about the perception of pricing in different cultures. I liked the concept. It's educational.

Useful link:
http://en.wikipedia.org/wiki/The_Market_for_Lemons

Treasure Hunters Break Scuba Rules For $50 Million (And Atlantis)

An interesting idea.

Useful link:
http://www.popularmechanics.com/outdoors/adventures/4230711.html

Report: Internet Outages Could Occur By 2010 As Capacity Stalls

Paul McDougall writes about the booming demand for Internet services + insufficient infrastructure investment + the impact + other viewpoints @ http://news.yahoo.com/s/cmp/20071121/tc_cmp/204200341

Aguirre: The Wrath of God

Aguirre: The Wrath of God (1972)
Directed by: Werner Herzog
Screenplay: Werner Herzog
Cast: Klaus Kinski, Helena Rojo

(via YouTube): Aguirre and enclosures
http://www.youtube.com/watch?v=ziYECEifZG4

Aguirre - The Wrath of God
http://www.youtube.com/watch?v=HO-spuGvsAU

I liked it.

Gold Getting Crossed Off Gift Lists

Lauren Villagran writes about the sharp run-up in precious metals prices on world markets over the past few months + jeweler/consumer concerns + the impact + other viewpoints @ http://www.businessweek.com/ap/financialnews/D8SV0UD80.htm

Reinventing The Landscape

Hilarie M. Sheets writes about landscape paintings + the icons + other viewpoints @ http://www.artnews.com/issues/article.asp?art_id=875

I Break Three Times Into Diamonds

Louis Kornitzer's book, Gem Trader, is partly autobiographical and partly woven round the lore of pearls. It's educational + explains the distribution chain of gems, as they pass from hand to hand, from miner to cutter, from merchant to millionaire, from courtesan to receiver of stolen goods, shaping human lives as they go + the unique characters in the industry.

(via Gem Trader) Louis Kornitzer writes:

Anyone can peddle shoelaces, but it will be obvious to any layman that there must be considerable amount of cash in hand before one can hope to be a diamond merchant. On the face of it it looks like one of those mysterious occupations that you cannot work up to. There are no correspondence courses for learning to be a president or a diamond merchant, and no ‘assisted passages’.

Nevertheless, you do not need much money, despite appearances, to be a diamond merchant—provided you have the necessary credit. Ever since the first struggling days when I first established myself I have enjoyed two vital things: good health and good credit. Nevertheless, it was not through any effort on my part that I first handled diamonds. It was in the days when I was still handling amethysts, peridots, opals, sapphires, anything, in fact, that came along, but was already deep in my lifelong attachment to pearls. A man named Brodnik came to see me.

I knew him by name. He was a dabbler in many things, considered a well-to-do man. This would-be diamond merchant was a short stocky figure with waxed moustache and a fund of good stories. He said to me at once: ‘I have watched you for a long time. I believe you are the man for me. Money talks. I am prepared to trust you. I want you to buy diamonds with my money and split profits fifty-fifty.’

Well, it was not all quite so simple as all that, but in the end I agreed to some such arrangement. I wanted the money put into my own bank, but he insisted on a bank in the City where he had certain discounting facilities. After all, it was his money, I thought, and so what he said went. Unfortunately, after I had bought a few parcels of diamonds and sold them at a good profit, and was beginning to think that the word ‘diamond’ had a musical sound, the unforseen happened.

One day Brodnik turned up at the office looking worried. ‘Trouble for you,’ he said sadly.
‘What trouble?’ said I.
‘Your bank has closed its doors this morning.’ He mentioned the establishment where he had deposited my diamond working capital.
‘Your bank, you mean,’ I corrected him.
‘Not mine,’ he said even more sadly. ‘My account there don’t matter a peapod. I’m overdrawn at that bank for forty pounds. Don’t you worry about me. Well, what are you going to do about it? I’m looking to you for my money.’
Brodnik was my old man of the sea for some time, until I was lucky enough to get out of his clutches. I did not touch diamond again for years.

My second venture into the brilliants market came when I was associated with a prominent French pearl dealer for the purpose of tapping new sources of pearl supplies in the South Seas. Wherever I went on that trip I was asked whether I had anything to offer in diamonds. I accordingly and optimistically drew my Paris associate’s attention to the possibilities of increasing our profit, and asked him to ship some diamonds of the right sort.

He had a first class brain, had my friend Jacques. Nevertheless, he envisaged my South Seas customers as a series of native rajahs and dusky chiefs, and he shipped to me as his first consignment a golden elephant with turquoise eyes and diamond-spattered trunk. The next week he sent me an ivory cane carved at the top into the semblance of an Indian god with diamonds set in eyes, nostrils and ears. There was no third consignment, or he might have sent me a meerschaum studded with brilliants or something even more hopeless than he did send. I gave diamonds a wide berth for another eight years.

Then one day in New York I was introduced to a prominent Antwerp diamond cutter who had risen from poverty to possession of the biggest diamond factory in Belgium and had unlimited credit. This man again broached diamonds to me. ‘I’m surprised that you should be content with pearls when you could, with your connections, build up a diamond business in the Far East second to none.’

I told him dryly of my first two experiences with diamonds. He laughed. ‘Third time lucky,’ he said. ‘This time you are going to hit the sky.’ But that is a story I must reserve for a later chapter.