CDG Industry Ethics & Market Knowledge 1

Question 1

What is a fundamental ethical principle in the diamond industry?

Accepted Answer

Honesty and transparency

Answer

Honesty and transparency are fundamental ethical principles in the diamond industry, vital for building and maintaining consumer trust. This includes providing accurate grading information, disclosing any treatments, ensuring responsible sourcing, and offering fair pricing. Upholding these principles ensures the integrity of the market and protects both buyers and sellers.

Question 2

What does the Kimberley Process aim to prevent?

Accepted Answer

Conflict diamond trade

Answer

The Kimberley Process Certification Scheme (KPCS) is an international agreement designed to prevent the trade of conflict diamonds. Conflict diamonds are rough diamonds used by rebel movements to finance wars against legitimate governments. The KPCS aims to ensure that diamonds are sourced ethically and do not contribute to armed conflict, thereby promoting peace and human rights.

Question 3

Why is market knowledge important for diamond graders?

Accepted Answer

To provide accurate valuations

Answer

Market knowledge is crucial for diamond graders because it allows them to understand current demand, supply, and pricing trends for different diamond qualities. This understanding, combined with their grading expertise, enables them to provide more accurate and relevant valuations. Without market context, a grading report alone cannot fully determine a diamond's fair market value.

Question 4

What is a conflict diamond?

Accepted Answer

Diamonds used to finance conflict

Answer

A conflict diamond, often referred to as a 'blood diamond,' is a rough diamond mined in a war zone and sold to finance an insurgency, an invading army's efforts, or a warlord's activity. These diamonds are associated with human rights abuses and destabilization of legitimate governments. The Kimberley Process was established to prevent their entry into the legitimate diamond trade.

Question 5

What is the purpose of a diamond grading report?

Accepted Answer

To provide objective quality information

Answer

The primary purpose of a diamond grading report, such as those issued by GIA or AGS, is to provide an objective and unbiased assessment of a diamond's quality characteristics. It details the 4Cs (carat weight, color, clarity, and cut) and other relevant features, offering a standardized way for consumers and traders to understand the stone's attributes. This information is essential for informed purchasing decisions and establishing value.

(CDG) Certified Diamond Grader Practice Test

(CDG) Certified Diamond Grader Practice Test

CDG Industry Ethics & Market Knowledge 1