The term conflict diamond, or blood diamond as others call it, became quite well-known to the average person in 2002 when the James Bond movie "Die Another Day" was released. This contribution to the legendary James Bond saga revolved around the idea of smuggling conflict diamonds, says http://www.stopblooddiamonds.org/.
So what is a conflict diamond? The UN formally defines a conflict diamond as a "diamond that originates from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council."
In short, a conflict diamond is any diamond that is mined from an area in which there is war, or armed conflict. The idea is that diamonds are very much in demand and that they fetch such a high price in almost any market. If you mine diamonds and sell them to other countries - of which there is definitely no shortage - you can get a large amount of money for them. Where does the profit from these sales go?
You guessed it - to finance wars and other forms of armed conflict in the affected areas.
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