What was the Syndicate in the diamond industry?

• A. The gem and jewelry resale market
• B. A group of diamond merchants formed in 1890 to buy and sell rough diamonds
• C. A regulatory body for rough diamonds
• D. A mining consortium expansion

Answer: (B)

In the diamond industry, the Syndicate refers to a cartel formed by leading diamond merchants in the late 19th century to control the flow of rough diamonds. By pooling production and coordinating purchases and pricing, they stabilized markets and protected profits, a setup that helped pave the way for the De Beers empire. This is why the correct description is a group of diamond merchants formed around 1890 to buy and sell rough diamonds. It isn’t a gem and jewelry resale market, a regulatory body for rough diamonds, or a mining consortium—those roles don’t describe how the Syndicate operated.