Diamonds were once very scarce and expensive.
Then in 1870, huge diamond resources were discovered in
South Africa. Diamonds were no longer a rarity. Everyone could own a diamond if
they wanted. As with anything in business, that's not a good thing.
The British businessmen that operated the mines had a clever
idea. They maintained the illusion that diamonds were scarce. This meant they
could drive up diamond prices. Here are a few fun facts about that time:
* The businessmen created the first
diamond cartel. It was called De Beers Consolidated Mines, Inc. The cartel was
in full control of the diamond supply. They also controlled the prices.
* It only took them 10 years to
control 90% of the world's diamond supply.
* The cartel managed to influence
diamond demand as well.
De Beers is still a large influence in the diamond industry
today.
You can read the entire article here.
To start from the beginning, click on Lucy’s image.
This mini series on Diamonds has
four parts to it. Click on each link separately to learn more about diamonds.
How
the diamond engagement ring came to be
How
De Beers became the diamond industry leader
The
"Diamonds are Forever" slogan
The
4Cs Of Diamonds
