Essay on The Price of Diamonds Is too High

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

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.

How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the sellers in this market? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices?

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

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

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 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.

Shining in the eyes of God and of men can prove an impossible task, not because we can’t shine, but because a diamond in the rough can’t be afraid to get their hands dirty to help someone in need. My potential is unlimited, but I need the cutting, shaping, and polishing that can only come from guidance of educators dedicated to my future. However, before this can happen the process of mining for diamonds, cleaning them, and analyzing are key. 4-H initiated my discovery.

Diamonds are made of carbon so they form as carbon atoms under a high temperature and pressure; they bond together to start growing crystals. Diamonds are formed underneath the Earth’s surface requiring them to be mined for, which can be a very high labor task. Out of the top ten countries in the world with the most diamonds, Africa has six of those countries (Said, Sammy. “Top Ten Countries with the Most Diamonds Found”). With six African countries being among the world leaders in diamond mining and exportation brings a lot of controversy. Some of these African countries have already been banned in the past from mining and exporting diamonds for many human rights violations. Angola is one of the world’s leading exporters of diamonds. Just

Diamond Bonanza is another progressive slot game with a 5 reel payline. The wager options of this slot machine vary. Players, however, can win the jackpot only when playing with the maximum wager. This popular progressive slot has paid over £1 in bonaza jackpots.

Wholesale market for high quality cut diamonds will provide continuity of supply and pricing (O)

This essay will introduce the diamond trade and the diamond cartel, giving insights into its peculiar structure. Firstly by analysing the role of the United Nations in the early 1990’s in tackling

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.