DEBEERS DIAMOND DILEMMA

For centuries, diamonds have been regarded as one of the most valuable commodities in the world and the industry has evolved into billions of dollars. At the top, De Beers dominated the entire industry worldwide, from exploration to retail selling. However, it has a reputation of a monopolist, where it influences supply and demand. The two critical factors that De Beers carefully maintained throughout the century to remain in monopoly was to create the illusion of the scarcity of the diamonds and to keep the prices high. Realizing the benefits of the cooperation and the dangers of the oversupply, most

Diamonds bought very frequently. Diamonds are the ultimate luxury. A cut in price wouldn't increase demand very

To recover diamonds, the industry is using modern mining methods and a more clinical approach to sustainability of mining and therefore the impact on the environment is being minimized while the benefits to the communities and countries where they are found are being maximized. These benefits are

Diamond Chemicals is a leading producer of polypropylene, the polymer used in a variety of products (ranging from medical products to packaging film, carpet fibers, and automotive components) and is known for its strength and elasticity.

Five Star Tools is a small family-owned business that manufactures diamond-coated cutting tools (chisels and saws) used by jewelers. The production of these tools involves three major processes. The first of these processes involves steel “blanks” (tools without the diamond coating) that are cut to size. The second process involves the blanks being sent to a chemical bath that prepares the tools for the coating process. The final process is the major process in the line. The blanks are coated with diamond chips in a proprietary process that simultaneously coats and sharpens

Bluenail Company article , this company is a littel bit simmlar to the Dee Beers story purpose. It is to educate the readers and the buiers about the quality of Diamonds and to pursuade them to buy, and convencing them by giving them the chance to know theier favoraite type of diamond and its color , the ring size chart of their fingers, and the unbeliveable

The diamond cartel has been in existence for over a hundred years. (Spar: 2006) It has faced many issues in order to survive and prosper. (Kretschmer: 1998) Rhodes’ method was sufficient during the early 1900s. (Spar:2006) By 1930, the price of diamonds had fallen and the war was looming; Europeans were not interested in buying diamonds. (Epstein: 1982) It changed ownership to the Oppenheimers around about the Great Depression. Thus began the exploitive marketing tactics of the 20th century. (Epstein: 1982)

“We covet diamonds in America for a simple reason: the company that stands to profit from diamond sales decided that we should.”

The De Beers Group of Companies established itself in the diamond industry in the late 1800’s and it was only a matter of time until De Beers owned virtually every diamond mine in South Africa. Diamond distributors joined up with De Beers because of similar interests: they wanted to create a scarcity of diamonds, so that high prices would follow. Eventually, De Beers would establish exclusive contracts with suppliers and buyers, making it impossible to deal with diamonds outside of De Beers. For the remainder of the 20th century, the business model was the same: A subsidiary of De Beers would buy the diamonds and De Beers would determine the amount of diamonds they wanted to sell, and at what prices. In turn, De Beers funneled all of the

The story of these infamous diamonds all started with a fifteen year old who found a diamond in his father 's arm. The diamond business started in 1935 when “De Beers” took all control over dining prospects in Sierra Leone. De Beers are a group of companies has a main role in the exploration of diamonds, as well as diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing sectors.This group was founded in 1888, and they are responsible for the problems Sierra Leone is facing today. These diamonds can be found in volcanic pipes. Diamonds are a pure form of carbon in a transparent state. Diamonds have always been a sign of wealth. Historically kings and queens were known for wearing these. Over time many people began lusting over them.

"The world 's biggest diamond mining and marketing company, De Beers Consolidated Mines of South Africa, announced in February 2000, that it will no longer buy any diamonds sourced from a region controlled by an armed group opposed to the legitimate authority in a country"(http://web.amnesty.org). According to a report by Partnership Africa Canada (P.A.C.), "upwards of 50,000 [have been] killed, half the population displaced, and more than two-thirds of its already severely limited infrastructure destroyed. Meanwhile, the underground trade of illicit diamonds is booming. Conflict diamonds are valued "between 4 percent and 15 percent of the world total" and generate annual trade revenues of $7.5 billion" (Johnson).

In marine littoral deposits, which fall under the category of secondary deposits, diamonds are mined along beaches and underwater. Industrial diamonds are also produced synthetically from graphite. Some synthetic diamonds conduct heat 50% more efficiently than natural diamonds and are five times greater in strength.

During the conflict in Sierra Leone it captured the world’s attention because of the extremely brutal conflict in the 1990s. People have guessed that conflict diamonds represents 4% of the world’s diamond production so far. But since most of the diamonds were used to fund Africa armies it would have reduced down to lower than 1%. The global diamond industry made it clear to the international community that they will have no tolerance towards conflict diamonds due to they can cause civil wars and mass murder. While diamonds are still used to fund conflict the problem was never the diamonds its how the rebels use them and take advantage of them to win the war that they have been facing.Today about 99% of diamonds are from conflict or traded

Diamond began in 1912 as a member-owned agricultural cooperative association, specializing in processing, marketing, and distributing culinary, snack, in-shell, and ingredient nuts. After almost a century as a walnut

Color. Clarity. Cut. Carat Weight: These four words are what jewelers in the industry use to determine the monetary value of a diamond. However in 1947 De Beers found a way to not only boost their sales but also make a psychological necessity out of this sparkly stone, and it all began with four vastly different words, “A Diamond Is Forever” (Frances Garety), and accompanied by phrases such as “Isn’t two months’ salary a small price to pay for something that lasts forever (N.W. Ayers)?