|
 De
Beers' Competition - The History
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 Corporation in Namibia by
forcing it into bankruptcy. It threatened its customers that their
supply from De Beers would be completely cut off they bought from
MDC.
In the mid '70s, Albert Jolis
of Israel tried to buy mining rights in Angola, Tanganyika, Ubangi
and Luanda and had in fact completed pacts with the respective
governments. De Beers kept close watch on the unstable political
situation and managed to support the successful revolutionary
factions at the right time and use British diplomacy to make new
deals with the new governments and cut Albert Jolis off!
Harry Winston of New York
also tried to buy mining rights in these countries and in Portugal.
He too was stopped by De Beers by cutting off his supply and forcing
the Portuguese government through the British embassy in Portugal to
severe his ties with Harry Winston.
Thanks to the new competition
from the new mines and new owners in Russia, Australia and also the new
trends that have challenged the diamonds cartel of over 100 years. De
Beers market share has come down to 60% from over 89% in the past.
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 and with Dr. Williamson
in Tanganyika. It was fully backed the Belgian and
French governments, and it was recognized by every other
government concerned as the official channel for the
diamond trade. New diamonds mines in Russia, Australia
and new flood of smuggled diamonds from African
countries is threatening De Beers' century-old grip on
the world diamond trade.......
Read more...
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...
Read more...
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...
Read more...
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... ...
Read more...
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 more...
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...
Read more...
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"...
Read more..
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...
Read more...
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 ...
Read more...
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...
Read more...
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....
Read more...
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...
Read more...
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....
|
New Competition for De Beers' Monopoly
