The Great Diamond Hoax of 1872

[gcode]

If you've ever been to NW Colorado, you may have seen Diamond Peak. If you've wondered if there are diamonds there, the answer, sadly, is no. But there is a story—one the San Francisco Chronicle called "the most gigantic and barefaced swindle of the age."

It concerns two prospectors (or, more accurately, two grifters)—the flamboyant Philip Arnold, a Kentuckian born in the same county as Honest Abe Lincoln, and his taciturn cousin John Slack. Arnold had worked for a short while at the Diamond Drill Co. During that period, he had "acquired" a number of uncut industrial-grade diamonds. The diamonds were not especially valuable, but they looked impressive—enough so to thrill several San Francisco investors.

The cousins had a knack for causing such thrills. They told investors that they had found a huge diamond deposit. They appeared concerned—almost overly concerned—about keeping the location of their find secret. This only intrigued investors.

There's a reason they called this the "Great" Diamond Hoax. Arnold and Slack could have taken the initial relatively modest amounts they were given as investments and run. But instead they traveled to London under assumed names, purchased more uncut diamonds and returned to San Francisco with more "proof" of their find. The list of willing investors grew and grew. It included Charles Tiffany, General George B. McClellan, and General (and Congressman) Benjamin Butler, among many other prominent citizens of the day.

https://pjmedia.com/instapundit/424143/#more-424143">https://pjmedia.com/instapundit/424143/#more-424143