Price Of Diamonds Essay

The diamond industry impacts the people of West Africa by creating a whirlwind of corruption on a political level. In sierra Leone diamonds were a valuable part of the land and they were once legitimately sold up until Sierra Leone became independent in 1961. The following years of their independence corruption flooded the land. According to an online research paper it says “with that independence came corrupt leaders, manipulation of the people , rebel groups, rivalries and civil disputes”. The correlation implies that the diamond industry has created an environment that leaves people at risk of violence, and unfair treatment by their government. The longer the diamond industry is in effect, the longer West African people will suffer from the world market demanding diamonds. Because of globalization it doesn’t look

Deep in the Alps lies a small town called Clay. The sun was rising over a frosty blue mountain, and drops of dew dripped down from the leaves in the valley. Arthur awoke to find his bedroom filled with light. He went downstairs and drank a glass of water, not hungry enough for food. Arthur went outside into the chilly morning and started walking down the road. The road was lined with hundreds of huge alpine trees. A large flock of birds flew over Arthur’s head in the sky.

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

Every nation has a responsibility to its citizens to improve the economic, political and social well-being of its people. However, in the film Blood Diamond it is made clear that there is an exploitation of the people in Sierra Leone. This economic problem is fueled by three main concepts; poverty, production/resources and demand/supply. Through the analysis of the three main concepts it will be shown how the economic problem was the result of each sub-concept.

At the time I checked, there where 771002 listings under natural diamonds. As the number of the seller increases, the supply of these diamonds increases as well. McConnell, C., Brue, S., & Flynn, S. (2012) explains that ““A shift to the right, as from S 1 to S 2 in Figure 3.5 , signifies an increase in supply” (p. 53). This is exactly what would happen in this case because as the supply of the diamonds goes up , the curve will be shifted to the right, and will also decrease prices. As more members join eBay.com it means that there are more buyers and this will automatically increase the demand of these goods as well. Also explain on (p.50) on the McConnell text.

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

Dee Beers jewllery blog, is a blog that has articles and photos about diamonds which explaines how diamon gemstone has been found, when did they start their business and the history of their cpmpany. It is actually the story of the Dee Beers, however thier main purpose is to teach the readers about diamons. Another purpose of the Dee Beers story is to persuade

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)

As a result the dollar, due to international regulations, is the currency for transactions involving diamonds, Sparkle must comply the law, but the dollar and countries that use it as their primary currency does not significantly influence prices of diamonds since it is regulated and the main market for diamonds is located in Belgium country using the euro as primary currency. In this case, Sparkle would be in a situation where the volatility of the dollar could affect their overall performance, however to mitigate this risk, it may enter into forward or options contracts to ensure a steady cash flow.

25. How did the De Beers cartel try to maintain control of the price in the diamond market? How was this control undermined? Briefly discuss.

This elucidates the idea that black market trading rarely benefits the economic status but different corrupt organizations. Businesses should find a way to properly trade legal diamonds, while benefiting the country’s economic system. Although the natural resources in some parts of Africa are rich, the people are extremely poor. In other words, Richman also states, "The great irony of this, and what concerns the industry most, is that the item is being sold as a part of a romantic, everlasting, and pure relationship, but there are a lot of ugly shadows that have contributed to the industry 's success." Industries must end their contribution to the blood diamonds that fuel this nation’s civil wars.

In the case of when De Beers was the sole producer of diamonds in the market, they were the gold standard of monopolies for the better half of the 20th century. Essentially, De Beers could choose to produce at any point on the market demand curve. They found it to be profitable to drive others out of the industry by purchasing competitor’s production of diamonds. The company exercised its control of the industry, establishing barriers to entry, by convincing competitors to join its single channel monopoly. When rivals opted to try and coexist with De Beers, they flooded the market with diamonds to make it unprofitable for the competition to remain. Additionally, De beers would purchase and stockpile diamonds produced by subsidiaries to control prices by limiting supply.

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.

An open market was offered to powerful European countries such as Germany an open market. This open market offered a large amount of goods, limited competitions, and cheap materials. There were goods such as diamonds, copper, and palm oil that are not available in Europe. Cecil Rhodes was ten percent of the world’s diamond producer. Cecil worked for Queen Victoria for many years, and he was once a peaceful farmer in Africa, but soon became filled with greed. Cecil wanted power, and the only way to achieve power was through money. After gaining the money needed through his mining company, and

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)?