The Crystal Palace was built in Hyde Park London to house the Great Exhibition of 1851. It was the brainchild of Prince Albert, Queen Victoria's husband.
After the Great Exhibition of 1851 for which it was constructed, the Crystal Palace was removed to Upper Norwood. There it stood from 1854 until it was destroyed by fire in November 1936.
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Nothing. The Crystal Palace was destroyed by fire in 1936 - three years before the start of World War 2.
It wasn't. The building known as the Crystal Palace was built to house some of the exhibits of the Great Exhibition in 1851.
You can read more about the Great Exhibition of 1851 at the Crystal Palace where the Kor-i-noor diamond was on display. At the time, that was the largest diamond known.
The exhibition intended to display the 'works of industry of all nations'.
As to why this diamond in this exhibition, that detail is lost to history, unless one wants to consider the Kor-i-noor diamond a 'trophy' example on display from the India colony.
You can read more, below.
It was sponsored by Prince Albert - Queen Victoria's husband.
The trees were already there - the palace was built around them,
The Crystal Palace was built specifically to house the Great Exhibition of 1851