The earliest records of diamond trade come from the Maurya Empire era in India, as documented in the "Arthashastra," which mentioned that diamond traders needed to pay taxes to the king. Diamonds began appearing in Europe as early as Alexander the Great's expeditions and the Roman era, but Europeans only knew that these diamonds possibly originated from India. During the same period, legends of "Diamond Island" and "Diamond Valley" were popular in Europe. It was only after Portuguese navigators opened a sea route from Europe to India that European travelers reached Indian diamond mines, and Jewish merchants transported diamonds to Europe by sea, making Lisbon the center of European diamond trade at that time.
Diamond Mining in India
In India, diamond mines were often located in river alluvial deposits. Two primary methods of extraction were used:
- Drying Method: Miners dug out diamond-bearing soil from the alluvial deposits, dried it on platforms, allowing the wind to blow away the dry soil and leaving behind pebbles. Miners would then pick diamonds from these pebbles.
- Washing Method: The soil was washed with water to reveal the diamonds.
The diamond mines were managed by agents appointed by sultans or emperors, and mine owners could purchase mining permits from the rulers. To prevent theft, miners were only allowed to wear loincloths, and numerous overseers were employed to monitor the workers, who were also made to watch each other. Miners received low wages, often partially paid in food and tobacco. Larger diamonds belonged to the rulers, while smaller ones were sold to local merchants who then sold them to European traders.
The Koh-i-Noor Diamond
During this period, larger diamonds, known as "famous diamonds," were often owned by local kings or emperors. One such diamond was the "Koh-i-Noor" (Mountain of Light).
Jewish Merchants and the British East India Company
In the 1640s, religious persecution by Portuguese Catholics led many Jewish merchants to leave Portugal. By 1655, after England allowed Jews to settle, Jewish diamond merchants moved to London and integrated their commercial network with that of the British East India Company. The company permitted Jewish merchants to use its ships to transport Indian diamonds to England and to bring gold, silver, and coral to India for purchasing diamonds. With import taxes decreasing, the diamond trade between Britain and India rapidly expanded, surpassing Portugal and the Netherlands.
Fort St. George, near Chennai, became the center of Anglo-Indian diamond trade due to its proximity to Golconda, India's largest diamond-producing area. Consequently, London and Amsterdam replaced Lisbon and Antwerp as Europe's diamond transit and processing centers. Armenian merchants also played a significant role in the land trade between India and Europe, competing with the British East India Company's diamond trade.
The Rise and Decline of Anglo-Indian Diamond Trade
The Anglo-Indian diamond trade peaked in 1767 but declined swiftly due to the exhaustion of Indian diamond mines and the rise of Brazilian diamonds. By the 1730s, diamond trade between Brazil and Portugal had emerged, and Brazilian diamond mining significantly lowered diamond prices in Europe. To secure substantial revenues from diamond trade, the Portuguese government monopolized diamond mining and trade in Brazil.
Diamond Mining in Brazil
Brazilian diamond mines, like those in India, were often located in river alluvial deposits. The Portuguese government defined the mining area and auctioned mining contracts, with soldiers guarding the mines. Only a few authorized retailers could enter the mining areas under special permits. African slaves were used for mining, with methods and conditions similar to those of Indian miners. Mine owners had to pay a head tax for the slaves.
In trade, all mined diamonds were kept in specific boxes, with keys held by the contract holder and the king's representative. Diamonds had to be transported to Lisbon via Rio de Janeiro at designated times. Only representatives of the contract holders could sell the diamonds in Lisbon, under the supervision of Portuguese ministers, with the king having the first right of purchase. The contracts included strict penalties for illegal mining and diamond smuggling.
Conclusion
The pre-industrial diamond trade was marked by complex global networks and harsh conditions for miners, whether in India or Brazil. The allure of diamonds, coupled with their high value, drove intricate systems of trade and control, often involving stringent regulations and significant exploitation of labor. As these early practices laid the groundwork for the modern diamond industry, they also highlighted the enduring challenges of ethics and sustainability in diamond mining and trade.