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The Birth and How it All Started...
In Early 1871, a diamond was found on a small hill, a
mile away from the farm house owned by De Beer brothers
(whose names were immortalized in the misspelled form of
De Beer) in the town of Vooruizicht in South Africa and
soon another was found on the farm. A throng of
diggers came , and the place quickly developed into a
tent town. Canvas shops, offices, canteens and hotels
sprang up overnight and the place was called "New Rush"
(Read - The Diamond Magnates by
Brian Roberts, 1972).
Wait. The Oppenheimer family that would ultimately
control De Beers company and the diamond trade over the
next 100 years have not come into the picture yet.
The town was later named as Kimberly in the honor of the
British Colonial Secretary John F. Kimberly who could
not pronounce the name of the farm - Vooruizicht! In
1874, Cecil B. Rhodes, an Oxford student was sent by his
father to join his brother in South Africa for a
healthier climate. After trying his luck at faming
unsuccessfully, he made winnings at dry digging and
became financially independent at the age of 19. He
bought more and more claims in the De Beers mine and
finally amalgamated the De Beers Mining Company and
Kimberly Central into De Beers Consolidated Mines Ltd.
It was incorporated on March 12, 1888 in the province of
Good Hope and it is now based in Kimberly, South Africa.
"All for the vanity of woman!"
Randolph Churchill, father of Winston Churchill said this when he peered
down into the vastness of the big hole of Kimberly (the largest diamond
mine in South Africa) and contemplated what it represented in human
terms. To which one woman in the party added - "..and
the depravity of man"
Diamonds have lured and fascinated us for centuries. Their ores and lore
have recorded some of the most romantic and unfortunately bloody
tragedies in the history. Diamonds have long been cherished, sought
after, fought over and killed for in the human history.
Tell me about the Name De Beers
De Beers Consolidated Mines Ltd. is a business organization that has been
controlling the diamond trade world wide for the last century. Many
people tried to compete such Harry Winston for New York and the Argyle
Diamond Company of Australia ...
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The Diamond Cartel
For more than 100 years, the name De Beers has evoked
all glamour and mystery radiated by a diamond. Through
shrewd marketing and careful manipulation of the market,
the South African company...
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The Birth of De Beers
Company
in Early 1871, a diamond was found on a small
hill, a mile away from the farm house owned by De Beer brothers
(whose names were immortalized in the misspelled form of De Beer) in
the town of Vooruizicht in South Africa and soon another was found
on the farm. A throng of...
Read more...
The Oppenheimers Arrive..
Sir Ernest Oppenheimer, who came from a prosperous cigar business family
in Germany, moved as a child to South Africa to join his brothers on a
diamond farm in 1902. He started his career as a diamond sorter and grew
rapidly to own and operate the world's most powerful...
The Long Arm of De Beers
De Beers mainly mines gem quality and industrial diamonds, markets
diamonds produced by itself and also others, makes and sells
synthetic diamond and related international investments in mining,
industrial and finance companies. In its worldwide operations, it
has assumed many....
Monopoly Through Financial
Strength and Government Support
De Beers could teach
OPEC a thing or two about how to maintain a cartel. It controls 80%
of the world's diamond supply through only 20% of De Beers gems come
from its own mines. It controls the world's diamond trade through
indirect levers. Some nations, such as Botswana...
Control Production and
Distribution - A Double Edged Sword
Production
The De Beers company and its
subsidiaries own interests in and operate the Bulfontein, De
Beers, Dutoitpan, Kimberly, Wesselton, Kamfersdam, Finsch,
Koffiefontein, Premier, Venetia, and Namaqualand mines in South
Africa. It also owns rights to the Voorssoed mine near...
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Distribution
As it travels from Botswana or Siberian mine to the ring finger
of the bride to be, a diamond passes through dozens of hands,
metamorphososing en route from a dull, shapeless piece from the
soil into a glittering spark of cold fire! Yet, no matter where
it ends up, the chances are great that...
What is Sight Holders?
In its distribution process, De Beers have commanded absolute
authority. 10 times a year, De Beers sells boxes of rough diamonds
to 160 select international dealers and manufacturers in market
rituals as sights in London, although smaller sights are
simultaneously held in...
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The Name of the Game
For major diamond dealers, the objective is to
increase allocation of diamonds that they receive in their shoebox at each night
(Read - The Rise and Fall of Diamonds, The Shuttering of a
Brilliant Illusion by Edward Jay Epstein). It is , as one dealer put it -
"the Name of the Game"...
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Maintaining the Value of Diamonds
The multi-billion dollar business of diamonds revolves
around the attractive pebble that has a less intrinsic
value per carat. The higher value is an artificial one
and is attributable to the strong hand of De Beers. The
sights in London are not merely occasions for major
gem...
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Creating Artificial Scarcity
It is ironic that during the lifetime of Sir Ernest
Oppenheimer, De Beers never discovered a diamond mine itself. Oppenheimers saw
little point to investing profits in exploring for diamonds...
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A Diamond is Forever
De Beers launched a multi-million dollar "A Diamond is For Ever" advertising
campaign to rekindle the demand. With N.W. Iyer, its U.S. advertising agency, it
had developed aggressive campaign to promote sales of diamond anniversary rings
and jewelry for men...
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De Beers' Competition
De Beers has left no avenues to control, stop, take over, make friends with or
bulldoze its competitors when necessary. In 1971, it crushed Sammy Collin's
Marine Diamond....
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How did De Beers Do it?
De Beers was phenomenally successfully in crushing its competitors with the
strengths it built over 100 years through financial and relationship powers and
the business acumen that came from...
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Diamonds from New Sources
The Oppenheimers using all colonial connections of the British Empire, succeeded
in weaving all the later discoveries in Africa, the colonial administrators in
Angola, the Congo, Sierra Leone......
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Smuggling from other African Mines
The smuggling routes lead from the diamond mines and diggings in
Southern and Western Africa to entry spots such as Monroevia,
Brazzaville, Burundi and Beirut. The Belgian and other European markets
are often flooded with smuggled diamonds. The native sorters at....
Read about Diamond History,
Diamond Trade, Buying Tips and more...
The Romans believed that diamonds brought
courage and bravery during battle. Jewish high priests used diamonds to
decide the innocence or guilt of the accused: A stone held before a
guilty person dulled and darkened; a stone held before an innocent
person glowed with increased brilliance. The Hindus believed that this
brilliant gem was created when....
Learn about Diamonds....
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The Birth of De Beers Diamond Company
