Brazil is the largest country of Latin America (with a population of 180 million people). It is among the ten most potent economies of the world.
Brazil’s diamond story developed in two stages.
The discovery of gold in the province of Minas Geraes (translated as “General Mines”) in the 17th century unleashed a real hunt for precious metals in this area of Brazil (see http://www.khulsey.com/jewelry/gems_minas_gerais.html). Gold and diamond mining turned to be a decisive turning point in the country’s economy. On the other hand, the discovery of gold resulted in greater numbers of Portuguese immigrants. The gold rush attracted residents from other areas of this colony, leading to a significant increase of urban population. The “gold fever” evidence has lived up to these days in the names of historic cities of the Minas Geraes State, including Ouru Pretu, the most famous of them. The country’s center of social and economic life shifted to the central and southern parts of Brazil.
In 1725, alluvial diamonds were discovered. One may wonder at people’s blindness: local folks used diamond crystals as dibs while playing cards. Only a clerk, who formerly dealt with Indian diamonds, noted this treasure. In 1728, the stones found their way to Lisbon, where some expert identified them as high-quality diamonds. After that, a start was given to desultory search for diamonds. The Portuguese government declared diamonds to be the Crown’s property and delineated the boarders of the diamond province named Serro do Frio; a special legislation was in force there. Later on, diamond beds were discovered in other areas of Minas Geraes, as well as in other states, as for instance in the South of Sao Paulo and Parana, in the West of the Goyaz and Matto Grosso States, in the North of Bahia and in Pernambuco. Today the beds of Minas Geraes are exhausted and the lead in diamond mining is taken up by the Bahia State. There are four areas, which are still famous in Minas Geraes: Serro do Frio or Diamantina, Rio Abaete, Bagagem and Grao Mogol; the most important is Diamantina.
One half of the Brazilian diamond mining industry is remaining in private (often criminal) hands. The law of the jungle is ruling at diamond mines and around them. There were many cases when diamond miners were robbed by gangsters and workmates and there were some cases when diamonds were extorted through kidnapping relatives, including children (http://www.khulsey.com/jewelry/diamond_mines_brazil.html).
At present, diamonds are mined by some local and international companies, as for example Diagem Inc. in team with Rio Tinto (Rio Tinto Desenvolvimentos Minerais Ltda), Diamantina, Brazilian Diamonds, CODEMIG, Vaaldiam Resources, Elkedra Diamonds and Mineração Rio Novo. During the last years, jewelry diamonds were mined at the rate of 0.5-1.0 million carats per year. The major diamond exporters are ANGELIM JÓIAS, CINDAM S/A COM. EXPORTADORA, COMERCIAL BRUSA, DIAMANRIO COMÉRCIO DE DIAMOND, H. STERN COMÉRCIO E INDÚSTRIA , LAPIDAÇÃO DE DIAMOND ANTUÉRPIA, MANIPASS DIAMOND & PEDRAS BRASILEIRAS, REMY COMÉRCIO, INDÚSTRIA, IMPORTAÇÃO E EXPORTAÇÃO.
Splendor of Brazil Royal Court
The second period of Brazil’s diamond story is associated with diamond jewelry consumption. When the Portuguese Royal Court moved to Brazil in 1808, it was a decisive event to this colony’s fate. Politically, it finally resulted in declaration of independence of Brazil. When Napoleon’s army started an annexation war against Portugal, its Prince-Regent Dom João VI moved all his court to Rio de Janeiro in 1808, where he declared “the Brazilian ports open for trade to all friendly nations”. During the court’s stay in Brazil from 1808 to 1812, the colony was transformed into a metropolis.
Culturally, Brazil accepted entire splendor of the Portuguese Royal Court and that of the contiguous social strata consisting of aristocracy, clergy, military officers and nouveaux riches. The country, where there were “a lot of wild monkeys”, by the middle of the 19th century turned into a large oasis of European luxury in its frankly Parisian variety. The Brazilian culture classics, such as Machado de Assis and Jorge Amado, in their novels about the life of Brazilian high society insistently stressed its literal cult of French patterns (which was very similar to the Russian-French dialog). High society women of Rio de Janeiro were blazing in diamonds and laces to say nothing of their dresses cut to the latest Parisian fashion. Gilded youth was showing off diamond rings. Amorous ladies’ men considered a jewelry piece with a large diamond to be the best and meaningful gift to the sweetheart. As it was remarked by Machado de Assis in his novel “Memórias póstumas de Brás Cubas”, “My good jewelers, what would become of love were it not for your trinkets and your credit? A third at least in the universal trade in hearts.” In other words, diamond jewelry in Brazil is just the most romantic symbol.
On the contrary, the colored population – Red Indians, Negroes, Mestizoes and Mulattos – prefer gold and silver adornments due to their modest income and cultural traditions. Especially liquorish for metal jewelry are the famous Brazilian Mulatto women, so well known to tourists by stupendous fiestas and fiery dancing.
Incomparability of Brazilian Style
Modern Brazilian fashion, including jewelry fashion, has its own identity. Besides, the Brazilian style bears significant sway over international fashion trends. An ever-growing number of Brazilian designers turn out to be the winners of international contests. There are also many of them among the winners of the famous Diamonds International Awards, which for some time was financed by De Beers. Sao Paolo (a city with a population of 15 million) is the center of the Brazilian fashion. You may see here such world fashion celebrities as Moss and Newton participating in defile regularly taking place here. There are several jewelry portals, as for instance www.diamantosonline.com.br.
According to the research performed by the Brazilian Institute of Gems and Precious Metals, buyers’ “impulse” is the major reason of jewelry purchases in Brazil. This attitude greatly differs from traditions of Western Europe and the U.S.A. where people make such purchases due to some important event in their life – engagements, weddings, wedding anniversaries or Christmas. Brazilians make their major jewelry purchases in specialized jewelry stores. The second place is occupied by sacoleiras – special traveling salesmen bringing their goods to your home.
The jewelry segment of Brazil is rather significant judging by its numerical values. In 2006, it was marked by the following indicators:
• Number of companies - 1250 industrial and 17,000 trade companies.
• Total turnover of precious metals and gems - about $2 billion.
• Number of employed in all fields of economy - 350,000.
• Export of rough diamonds - $4 million, mainly to Israel (legal export is approximately 10% of its physical amount).
• Jewelry export - $742 million (in 2004).
In Brazil, more than 100 companies are making jewelry articles with cut gem inserts. The majority of them are small family firms. There are only three dozens of medium and large size factories employing more than 50 people. The majority of factories are located in the South and in the South-West of this country (the climate there is more similar to that in Europe) – in the states of Sao Paolo, Minas Gerais and Rio de Janeiro.
Diamonds are mainly cut in Soledad (the State of Rio Grande do Sul). There are about 100 specialized companies here.
There is a network of professional associations operating in Brazil: IBGM - Instituto Brasileiro de Gemas e Metais Preciosos; AJODF – Associação Joalheira do Distrito Federal; and GEA - Gem Export Association.
For the past 10 years, there were only sporadic attempts to give a start to diamond cooperation between the Russian Federation and Brazil both at the government level and between private companies.
ALROSA is collaborating with Brazilian Company Odebrecht. The pertaining details may be found at www.alrosa.ru and www.catoca.com. Well-known geologist F.V. Kaminski form the Central Scientific and Research Institute of Geological Prospecting is engaged in private projects via a Canadian company.
OOO Zoloto Brazilii (Saint Petersburg) supported by IBGM and APEX (Brazilian Agency for Export and Promotion of Goods) is an exclusive representative of a group of Brazilian jewelry companies, including F. R. Hueb, Vianna, Vancox, Manoel Bernardes, Bruner, Brumani, Danielle, Denoir and Forum Romano, in the territory of the Russian Federation.
Oh, those Russians
The first wave of Russians arrived in America after the revolution of 1905-1907. Political emigrants and soon after them families of Old Ritualists, who arrived to Sao Paolo, received plots of land far away from the city and established there a small town named New Odessa. Many of them did not like this hinterland and they started to hunt their luck in Sao Paolo and other cities. In the 1920s, the “white emigration” greatly increased Russian communities in Sao Paolo and Rio de Janeiro. After the second world war, about fourty five thousand emigrants from Europe and China (Harbin, Kuldja) arrived to Brazil, but for many of them this country turned out to be a transfer point on their way to the U.S.A., Canada and Australia. In the 1950s, the number of Russian emigrants in Brazil was in excess of one hundred thousand. Nowadays, despite Brazil’s refusal to accommodate immigrants, the inflow of Russian speaking people is nevertheless growing due to newcomers, who are trying by hook or by crook to settle their fate abroad. In Sao Paolo, accommodating the largest Russian community, there are three Russian orthodox churches, two cultural and charitable societies, “Hope” and “Motherland”, several homes for the old, which are supported by the Tolstoy Foundation.
In summer 2007, the Rio Grande du Sul police busted a criminal ring consisting of Russian immigrants. The criminals used to talk the management of religious and educational institutions into investing their money to buy gold, after which they fraudulently seized the precious metal and passed to neighboring Uruguay. Some part of the talks was in Russian and this was why the police operation to arrest them was code named as “Russia”. According to the investigators, the criminal ring existed from 2001 and every month it smuggled out of the country gold and currency worth about $800,000, totaling their illegal company’s turnover to $20 million.
Vladimir Teslenko, specially for Rough&Polished
