The Price of Diamonds is Too High Essays

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

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

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?

By definition a Monopoly is exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices (Monopoly 2012). Individuals are often time fearful of a company or industry becoming a monopoly because it would control too much of a market share, and do whatever wants; this includes raising prices, to using excess capital to branch into even more areas (Rise of monopolies 1996). The market structure of a monopoly is characterized by; a single seller; a unique product; and impossible entry into the market (Tucker 2011). A monopoly can be a difficult thing to accomplish being that a single seller faces an entire industry demand curve due to the fact it makes up the industry as a

The diamond cartel shifts the market equilibrium to the shareholders’ preference – as shown in figure 3. This way a higher profit is made from the sales of diamonds because of the perceived scarcity. Rhodes was insightful to use the number of wedding engagements as a ballpark figure for the supply of diamonds (Bergenstock and Maskulka: 2001)

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.

Also, there needs to be a more defined definition of a blood diamond (“War on Blood Diamond Trade Loses its Lustre in Age of Digital”). The Central African Republic fails to realize that the diamonds being bought come from instances of executions, child labor, as well as looting (“Companies must Not Profit from Blood Diamonds”). Obviously, Africa is rich in minerals, which is its curse (Ainger et al.367: 9-27). Consequently, there has been 50 wars, fighting for control of resources. Political, social, and economical factors matter in these resource wars (Ainger, et al.367: 9-27). Recently, the Kimberly process fails to uphold in central Africa, Cameroon. As a result, Cameroon is flooding with conflict diamonds because of mediocre leadership along with corruption (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). This may be the effect after the African Republic was internationally embargoed in 2013 (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). Therefore, “As the Kimberley Process visits Cameroon, it must take action immediately and demonstrate to companies, retailers-and most importantly to consumers-that it is able to stop the flow of conflict diamonds," Offah Obale. Presently, the diamond industry is in a bit of a mix as the Kimberly process is expected to help countries receive clean diamonds in order to restore international market relationships ("War on Blood Diamond Trade Loses its Lustre in Age of Digital"). Now, it is known that the common life-span is estimated to be 34 years old in Africa, Sierra Leone. Also, “We have always maintained that the conflict is not about ideology, tribal or regional difference... The root of the conflict is and remains diamonds” says UN ambassador of Sierra Leone, Ibrahim Kamara. At the present time, there is a cease fire in the Republic of Congo since

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,

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.

Going back to Chapter five, members of the Diamonds would have to steal in order to get money. Stealing represents work that is very risky because the potential for discovery is extremely high. They would go out as a team to better plan and execute a job (Padilla 1996: 119-120). Youngsters would steal merchandise they know can be easily sold to permanent customers or they would sell their goods to neighborhood residents in order to get all the money they can (Padilla 1996: 122). While the act of stealing is dangerous, risky, and requires much preparation and planning, sales of stolen goods usually produce small earnings for these youngsters (Padilla 1996: 126). As a result, members of the Diamonds realized the harm they put themselves through

Have you ever glanced at your ring finger and admired the beautiful diamond on it? Now have you ever wondered where that diamond came from or how many lives were affected just to get it? Those are the questions you should ask yourself the next time you visit your local jewelry store for a visit. People worldwide should make an effort to stop buying conflict diamonds. They are funding wars in Africa everyday. Workers working in the mining business are in a danger zone. Innocent men, women, and children are getting caught in between the conflict and are being forced to work. If people would stop buying conflict diamonds from conflict areas, Africa would be a better and more productive place.

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

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)?