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| '''De Beers''' is a ] and ] based ] ] ]. It has historically held a near total ] in the ] trade. However, recently ] interests have captured 20% of the market. De Beers has been for many years under indictment in the ] for ] violations, to which it plans to plead guilty. | '''De Beers''' is a ] and ] based ] ] ]. It has historically held a near total ] in the ] trade. However, recently ] interests have captured 20% of the market. De Beers has been for many years under indictment in the ] for ] violations, to which it plans to plead guilty. | ||
| The De Beers cartel has used its monopoly to create an artificial scarcity of diamonds, thus keeping prices high. The modern tradition of diamonds as a part of ] in many cultures has been largely created by De Beers through an effective advertising campaign, started in 1939. | The De Beers cartel has used its monopoly to create an artificial scarcity of diamonds, thus keeping prices high. The modern tradition of diamonds as a part of ] in many cultures has been largely created by De Beers through an amazingly effective advertising campaign, started in 1939. The 'Diamonds are Forever' campaign not only convinced the public that the only suitable gift for engagement is a diamond, but also served to limit the market in used diamonds. | ||
| De Beers distributes diamonds to favored customers (called ''sightholders'') by selecting batches of diamonds themselves and offering them as is. Following the distressing use of diamond revenues by African revolutionaries engaged in diamond smuggling (]s), De Beers now sells only diamonds mined from their own mines, most of which are in ] and ]. They are currently involved in a joint venture which is developing a diamond prospect in ]. | De Beers distributes diamonds to favored customers (called ''sightholders'') by selecting batches of diamonds themselves and offering them as is. Following the distressing use of diamond revenues by African revolutionaries engaged in diamond smuggling (]s), De Beers now sells only diamonds mined from their own mines, most of which are in ] and ]. They are currently involved in a joint venture which is developing a diamond prospect in ]. | ||
Revision as of 00:34, 3 August 2004
De Beers is a London and Johannesburg based diamond mining corporation. It has historically held a near total monopoly in the diamond trade. However, recently Israeli interests have captured 20% of the market. De Beers has been for many years under indictment in the United States for antitrust violations, to which it plans to plead guilty.
The De Beers cartel has used its monopoly to create an artificial scarcity of diamonds, thus keeping prices high. The modern tradition of diamonds as a part of engagement in many cultures has been largely created by De Beers through an amazingly effective advertising campaign, started in 1939. The 'Diamonds are Forever' campaign not only convinced the public that the only suitable gift for engagement is a diamond, but also served to limit the market in used diamonds.
De Beers distributes diamonds to favored customers (called sightholders) by selecting batches of diamonds themselves and offering them as is. Following the distressing use of diamond revenues by African revolutionaries engaged in diamond smuggling (blood diamonds), De Beers now sells only diamonds mined from their own mines, most of which are in South Africa and Botswana. They are currently involved in a joint venture which is developing a diamond prospect in Canada.
History
De Beers was founded in 1888 by Cecil Rhodes. In the 20th century the major shareholders became the Oppenheimer family.
External links
- De Beers official homepage
- The Times (London) 8 Feb 2004 article on recent developments.
- Mail on Sunday (UK) 20 April 2004 article on history of USA indictment.