What are blood diamonds, Conflict Diamond, War Diamond?

In relation to diamond trading, blood diamond (also called a converted diamond, conflict diamond, hot diamond, or a war diamond) refers to a diamond mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity, usually in Africa.

Polished diamond prices vary widely depending on a diamond's carat, color, clarity and cut (The 4 C's). In contrast to precious metals, there is no universal world price per gram for diamonds. However the industry does refer to price guides such as the Rapaport Diamond Report, Ajediam Antwerp Diamonds Monthly and The Gem Guide, which are published weekly or quarterly.

Diamonds are subject to value added tax in the EU, and sales tax in most developed countries. Other taxes such as capital gains tax may apply for individuals depending on citizenship and if the asset is sold at increased value. Rough diamonds are also subject to taxation and in the near future all rough diamond mined in South Africa will be subject to a 7% royalty.

PS: Blood Diamond (film) is a 2006 war film co-produced and directed by Edward Zwick starring Leonardo DiCaprio, Jennifer Connelly and Djimon Hounsou. The title refers to blood diamonds, which are diamonds mined in African war zones and sold to finance conflicts, and thereby profit warlords and diamond companies across the world. The film was nominated for five Academy Awards, including Best Actor (DiCaprio) and Best Supporting Actor (Hounsou).

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