The Price of Diamonds Is Too High Essay

Today, over two thirds of the world’s diamonds come from one company, De Beers. The London based company was one the first companies involved in the mining for diamonds in Africa immediately following their discovery. Cecil Rhodes was attracted to the new prospects of mining in African and he started his search for diamonds in 1870. Another English immigrant miner named Barney Barnato, Rhodes’ rival, also fought to control the same diamond claims as Rhodes. By 1880, Rhodes had bought out Barnato and had founded De Beers Consolidated Mines Ltd. Rhodes envisioned controlling the whole diamond market. By 1888, he had realized his vision and he had gained monopolistic control over the whole diamond market. He completed his monopoly with the formation of cartel, the London Diamond Syndicate, who were that biggest diamond merchants of the time. His syndicate allowed him to perfectly match supply with demand. They provided him with critical information about the diamond market allowing him to create an artificially controlled supply of diamonds. In return for their assistance, the diamond merchants were guaranteed a certain amount of diamonds from Rhode’s mines.

De Beers advertising slogan "A Diamond Is Forever" has been the center of its effort to establish the stone as the only appropriate gem to symbolize lifetime love and commitment. The more ad money spent, the more diamonds people buy. And when people buy diamonds, De Beers profits. It is the reason the company spends $180 million a year worldwide to advertise cut diamonds--a product it doesn 't even sell.

Elite population segment in Beijing, Shanghal and Guangzhou- the top %5, with monthly household income of 20,000 RMB indicating %88 ownership among women. (higher than US) Acquisition rate per year in the target group %12, many were multiple owners. (avg: 1,56) Attitudes to diamonds were very positive

The economic principals discussed in this article are mainly focused on the fact that until 2000, the diamond industry was a monopoly. A monopoly, as defined by our book, has one firm, a unique product, and the entry into the market is blocked. The owner of the diamond industry, Cecil Rhodes, created this by buying all the available diamond mines. He started in 1870’s by buying the mines found in South Africa. As time went on,

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.

In developed countries, a diamond signifies love, status, beauty, and endurance/strength; however, in developing countries such as Africa, the diamond symbolizes torture, extreme labor, and exhaustion. The idolization of diamond rings began in the 15th century when Archduke Maximilian of Austria presented Mary of Burgundy a diamond ring upon the suggestion of “a faithful advisor who counseled: “At the betrothal Your Grace must have a ring set with a diamond and also a gold ring” , thus it became a public demonstration of marriage (http://www.thenaturalsapphirecompany.com/education/sapphires-as-heirlooms/the-history-of-engagement-rings/). Diamond rings are also given within marriage on significant anniversaries such as the 60th, as a symbol of the marriage’s longevity. As these gems became more highly demanded, businesses started looking for

Diamonds have long been considered some of the most prized and sought after possessions. They have been perceived as indicators of wealth and romance. The diamond market however; has been one of the most controversial and controlled markets in history run by a cartel “…an association of suppliers with the purpose of maintaining prices at a high level and restricting competition” (Oxford English dictionary) formed to prevent the market from becoming flooded with diamonds from too many suppliers, resulting in a price drop.

The film marker is trying to raise awareness of the illicit conflict diamond trade and reinforcing the Kimberley process1 and showing how it will stem the flow of conflict diamonds. This is successful mainly due to the public outburst after the movie. The great impact of the movie has caused diamond

The diamond cartel is the most successful and long-lasting cartel in history. The cartel created a scarcity for diamond and stabilized the prices at a high level. This essay will be discussing the validity of the statement with reference to the market of the diamond industry, history of the diamond cartel, how the price of diamonds is determined, and the implications thereof.

Diamonds have become the ultimate symbol of luxury and money and are highly valued throughout the world today. However, in the spectrum of time diamonds have served a variety of other purposes. Diamonds were formed 3.3 billion years ago by extreme heat and pressure within the earth and are formed entirely out of carbon, making it the hardest natural surface known to man (debeers.com). Archaeologists believe that early humans actually used diamonds as spear heads and other tools. However, over time diamonds have become a luxury good, connected with much prestige. The high status of diamonds helped create the diamond rush that would forever alter the fate of South Africa.

rough diamonds produced. The industry is controlled as a monopoly by the De Beers diamond company which operates from South Africa and London. The wholesale trade and cutting of diamonds is limited to only

There is a certain issue which needs to be looked at in West and Southern Africa today. This issue deals with conflict diamond trade, which is the trade of diamonds in which the conditions for the miners had been extremely poor, and as well, the profit gathered is usually taken into the funding of illegal activities in the area, such as funding rebel movements. Being in the 21st century, this should not be allowed by the general public, and there were actions taken by different organisations to attempt to stop the conflict diamond trade. However, up until today, they have only had limited success. For example, The Kimberley Process Certification Scheme, although having many advantages, also has some disadvantages to it, which will be touched upon. Furthermore, there are some additional measures which could help in preventing the trade of conflict diamonds in the future, which will also be discussed. This will give potential chances to help end the conflict diamond trade in which many parts of Africa are suffering from.

“A Diamond is forever.” Or is it really? For about 80 years, the De Beers diamond company has pulled off one of the best marketing schemes a company could wish for. Indeed, how much would you estimate your diamond engagement ring wrapped around your finger? A fair amount would be the right thing to say. However, the compressed carbon stone is worth less than anyone would imagine, which is why De Beers has been so successful, which, thanks to a good use of marketing as well as strategy, has led the entire planet to believe that diamonds are rare, luxurious and expensive stones. They are the leader in their field, as De Beers’ diamond output from their own activities is about 40% of the world’s total rough diamonds. The key to their success

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)?

It was an Englishman, Cecil John Rhodes, that formed De Beers Consolidated Mines in Africa in 1866. He managed to keep prices high by controlling the mining operations of the largest mine in Africa. Even with all his efforts, as more diamond mines were discovered, the prices of diamonds dropped a bit in the early 1900s. In order to counteract this, De Beers, was clever to hire an advertising agency to work up a genius way of addressing the price decline by increasing the demand for quality diamonds. In 1947, De Beers managed to corner the market on the engagement ring and fine jewelry industry by coining the term “A diamond is forever” and then many other successful slogans like “Diamonds are a girl’s best friend.” now almost 80% of engagement rings are presented with a