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In England and France, diamonds were still presumed to be jewels for aristocrats rather than the masses. Furthermore, Europe was on the verge of war, and there seemed little possibility of expanding diamond sales. This left the United States as the only real market for.
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The financiers feared that when new mines were developed in South Africa, diamonds would become at best only semiprecious gems. The major investors in the diamond mines realized that they had no alternative but to merge their interests into a single entity that would be.
Lauck and N. W. Ayer had been recommended to Oppenheimer by the Morgan Bank, which had helped his father consolidate the De Beers financial empire. His bankers were concerned about the price of diamonds, which had declined worldwide.
In Israel, it was known as "The Syndicate." In Europe, it was called the "C.S.O." - initials referring to the Central Selling Organization, which was an arm of the Diamond Trading Company. And in black Africa, it disguised its South African origins under subsidiaries with.