The Fall Of Debeers : Political Turmoil Essay

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

8. Similar situation happened with discoveries in Australia, Siberia and Canada. De Beers made arrangements with the

The process of producing the diamonds so they could be sold on the market involved many steps which were illustrated in the movie, Blood Diamond. Smugglers like Archer would supply the RUF with guns. The guns would be used by the RUF to intimidate the people of Sierra Leone into working as laborers for them, we see this with Solomon and his son. These men would be forced to dig in the water mines for hours a day searching for diamonds of all sizes. Then the diamonds are mixed with other diamonds all around the world, mixing the illegal ones with the legal ones; this was explained in the movie by Archer to Maggie. When the diamonds are mixed in with the others, no one can determine for certainty where each originated from. It is then distributed to nations where they are made into necklaces and bracelets, and no questions are asked.

This essay supports the statement “The price of diamonds is too high”. Diamonds have always been presumed to be rare. They have been present in history as a symbol of wealth and luxury as they were so difficult to find. Nowadays diamonds are mined and are found all over the world but they are sold through a cartel. (Epstein 1982) A cartel limits the supply of a product in order to keep prices high and to limit competition. (South African Pocket Oxford Dictionary: 2002) This raises the question of whether diamonds are actually worth their price. This essay focuses on the origins and the basic theory behind the diamond cartel; the early operation of the cartel; De Beers’ strong market campaign; determining De Beers’ current

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

Sierra Leone is one of the poorest nations on earth second to last on the United Nations human development index. The first mine was established in the town of Kimberley by two farmers; the De Beers Brothers. (BloodDiamondsDocumentary) The De Beers sold diamonds at least ten times per year in London’s open market and controlled at least 90% of the world’s diamond production bringing in billions of dollars per year. The average person brings in about $220 per year income yet the nation remains rich in natural resources. (BloodDiamondsDocumentary) Places like Botswana, South Africa, Canada, and Russia are the largest diamond producing nations in the world with more than 20 tons produced per year and a revenue that equates to about 60 billion dollars per year with half of the merchandise being sold right here in the United States.

It was the marketing campaign of the De Beers Group that have made diamonds as popular as they are now.

While urging nations to open up trade and allow the free movement of capital, labor and goods, Nathan Rothschild was also monopolizing the diamond market with his colleague Cecil Rhodes. At one point he marveled at the fact that they had cornered 98% of the South African diamond production (37) This short vignette about Rothschild highlights a key point, which is that liberal and mercantilist ideas were used in tandem during this era. While superficially contradictory, these two policies are on in the same. They are the tools through which different actors fulfil their goal of making exorbitant

In the Democratic Republic of Congo (DRC), the diamond mining industry is being exploited by rebels who are using the diamonds as ‘conflict diamonds’. These diamonds are being used to illegally buy arms used towards the civil war and other conflict in the DRC. Since the rebels have control of the diamond industry with conflict diamonds, they affect the DRC’s economy and the livelihood of the people who have no choice to work for the rebels. Because of the constant conflict since independence of the DRC, there is the persistent issue of how to reduce the circulation of conflict diamonds.

Are You Wearing Death? A Research Proposal for the Abolishment of the Blood Diamond Trade

For many people over generations the diamond has been a symbol of power, beauty, luxury, uniqueness, and everlasting pure love. For others the diamond has been a symbol of conflict, death, exploitation, misery, and blood shade. All the glamour and beauty attributed to diamonds might be blinding us to the impacts of its operations in Africa. In this paper we will go through a research journey to find out more about the positive and negative impacts of diamond mining in Africa and the diamond industry. Also, this research paper will highlight

In order to control supply and demand, and therefore price, distribution arms through “The Diamond Syndicate” and “The Diamond Trading Company”. Diamond claim holders and suppliers united to create a scarcity of diamonds to ensure that diamond prices would remain high. De Beers would host sales events or “sights” ten times each year where they will sell the diamonds to clients also known as “sight holders” at non-negotiable prices .

A meeting of Southern African diamond-producing states was held in Kimberley in May 2000 to discuss issues presented by conflict diamonds. This

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)?

Russia's position is unique in the sense that all other countries are part of a single "diamond pipeline", and involved either in diamond mining, or diamond polishing, or in the production or the consumption of finished jewelry. Russia is not just characterized by commodity orientation; it has all the elements of the diamond pipeline, from the richest diamond reserves in the ground and to a multitude of existing and potential customers.