In only a few centuries, South Africa has become a near synonym for diamonds ever since the discovery of diamonds at the Kimberly Mine in 1871. The discovery would change the face of the nation forever. Diamond mines in South Africa have proven to be a continuing source of controversy, from the Second Boer War in 1899-1902 to the everyday conflict that exists till this very day. Today, diamonds are among South Africa's most exported materials, next to coal, minerals, gold and metals.

Big Hole Kimberley, South Africa

When diamonds were first discovered in 1867 and gold was discovered in 1884 South Africa began to grow economically and attract immigration. However, this also exacerbated the tension between European-South Africans and South African natives. The struggle for control over these resources played an important role in the war between the Boers and the British.

Global diamond giant De Beers was probably the greatest profiteer of the discovery of diamonds in South Africa. Formed by Cecil Rhodes in 1888, De Beers Consolidated Mines became the sole owner of all diamond mines in South Africa, and soon became an international monopoly. This monopoly was eventually broken diamond mines were discovered in Russia, Canada and Australia, as well as due to the cultural, social and financial changes of the 20th century.

In the 1990s, De Beers' policy was to make sure that the diamonds it bought weren't used to fund rebel groups. The Kimberley Process was established when Southern African countries decided to act against "conflict" diamonds in the markets, while protecting the legitimate diamond industry.

The Kimberley Process, which has been chaired by South Africa since 2000, includes over 50 governments has established a set of minimum acceptable international standards for national certification schemes relating to rough diamond trade. De Beers insisted that all of the diamonds it sells today are 100% conflict-free and that all De Beers diamonds are purchased are sold in accordance to national law, the Kimberley Process Certification Scheme and De Beers' own Diamond Best Practice Principles.

Photo Credit: garybembridge

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Israel will celebrate the turn of the new Hebrew year this weekend, and I think this makes a great opportunity to start telling you about the history of the Israeli diamond industry.

The Israeli Diamond District

As most of you probably already know, Israel is one of the world's major diamond centers, along with Belgium, Hong Kong, the United States and India. In 2008, the Israeli diamond industry exported some $6.2 billion worth of polished diamonds and some $3.4 billion worth of rough diamonds to various destinations around the world. To date, there are over 2,000 diamond companies, factories and traders operating in Israel.

The Israeli diamond industry was born in 1937, moments before World War II broke out. Jewish diamond polishers and cutters who lived in the Netherlands were forced to flee Europe, and those who arrived in Israel established the first Israeli diamond polishing plant in Petah Tikva.

The Israeli Diamond Exchange Trading Floor

When the 15% tax on the import of rough diamonds in Israel was removed in 1938 by the British Mandate, thanks to the efforts of Aaron Abraham Ben Maurice, it helped the Israeli diamond industry flourish. In 1939, Netanya's first diamond polishing workshop “Ofir” was established, small factories expanded, and by 1944 the industry employed over 3,000 workers in 33 factories. Diamond workers received the highest salaries in Israel.

While European diamond industries halted their operations during World War II, the Israeli diamond industry continued to operate at full speed. The Central Selling Organization of diamonds in London (CSO), provided the Israeli diamond industry with a regular supply of rough diamonds for a fixed price, and Israeli diamond factories were able to sell their polished diamonds with virtually no competition.

However, after the State of Israel was officially formed, the industry started to climb its way back up. In the 1950s, Israel was immersed in construction and growth, and the diamond industry was no different: By 1959, the Israeli diamond industry had become bigger than ever before. With the support of a modern democratic state, the Israeli diamond industry was able to endure many crises, including  Israel's wars with its neighboring countries as well as global and local recessions and political and cultural changes.

Israeli Diamonds Stamp from 1968

In 1968, The Israel Diamond Exchange inaugurated the Shimshon Building – a 24 stories high tower that was designed to serve the industry's many needs. Until this day, it is considered one of the most advanced diamond bourses in the world.

There's still much more to tell but I think I'll save some for later. Shana Tova, everybody! See you next year!

Based on historical overview by Shira Ami