Less about the diamond business than about DeBeers in general.  Like any
cartel, DeBeers attempts to manipulate the price of the particular product
whic they produce.  Why this seems scandalous in light of the fact that
it's what they've been doing for over a century now is a mystery to me.

DeBeers does NOT control the diamond market.  DeBeers controls the retail
diamond market, and like any other cartel-controlled sector it is corrupt
on all levels (the chain of operations from DeBeers' mines to the jewelry
store in the mall is not so different from the old chain of operations
that started at Medellin and ended on the local streetcorner.)  There is a
whole great big world out there not under the control of DeBeers, and some
of it produces diamonds.  There are coloured diamonds.  There is the
highly-lucrative diamond aftermarket.  There are the industrial
applications for diamonds.  DeBeers does not have a lock on any of these.

As an aside, twenty-one years after the linked article was published the
predictions made regarding diamond prices have still not come true.


Frank


  

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