A Diamond is Forever Essay

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A Diamond is Forever

An Examination into the De Beers Monopoly

“A Diamond is Forever” – is one of the most successful slogans of the twentieth century. The advertising slogan belongs to De Beers, the world’s most successful monopoly of trade. “A Diamond is Forever” has been the center of De Beers’ effort to establish the stone as the only appropriate gem to symbolize lifetime love and commitment. The slogan, along with the $180 million dollars spent yearly in advertising by De Beers , has been immensely successful as the company continues to remain the leader of its industry – a monopoly of the diamond trade.

Control of De Beers:

The slogan “A Diamond is Forever” concentrates on a combination of emotion and status. The true
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De Beers seized the moment to control the production and supply of the new abundance of diamonds in southern Africa, with the development of De Beers Consolidated Mines, Ltd. With control of the supply of diamonds, De Beers was able to continue the idea that diamonds are a rare good. There is in fact a large supply of diamonds, with more than 100 million carats coming out of the ground per year. The supply on the market however is controlled almost exclusively by De Beers.

De Beers has manipulated an artificial sense of a diamond’s scarcity by buying up new mines, freezing out challengers and mopping up excess supply.

Through a web of intricately intertwined businesses, De Beers has created a monopoly of power by controlling everything from the stones’ removal from the ground to their delivery into the hands of jewelers. De Beers’ advertising slogan, “A Diamond is Forever”, embodies a concept that the value of a diamond never diminishes and that therefore a diamond never need be sold or exchanged. The logic in this for De Beers is great – as long as no one attempts to sell their diamonds, they retain their value. This keeps diamonds off the market, while De Beers continues to control the supply of new diamonds.

So how valuable are diamonds? With the price a consumer pays for a one-carat diamond – averaging around $5,000.00 , one
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