Jewish involvement in diamonds stems from medieval geography and expulsions [causal]
Jews have been involved in the diamond industry since the Middle Ages. The original reasons for their involvement were largely fortuitous: Jews happened to live in major cities on the diamond trade route. In two of these cities, Amsterdam and Antwerp, laws relating to Jewish employment were quite liberal and the governments allowed them to freely enter the diamond-cutting trade. The concentration of Jews in the industry accelerated in 1492 when Spain expelled its Jews and large numbers then fled to Amsterdam and Antwerp.
Lisa Bernestein, Opting out of the Legal Sys…, loc. 181