|
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 forms.
In London, it operates under the innocuous name of
Diamond Trading Company or the famous DTC. In Israel, it
is known under the all-embracing mantle of "The
Syndicate". In Antwerp, Belgium it is just called the
CSO (Central Selling Organization), and in black Africa
and India it disguised its South African roots under
different names and entities due to apartheid related
boycott. In Africa and India it used subsidiaries
and names such as Diamond Development Corporation or
Mining Services, Inc. or Hindustan Diamond Corporation
*through two Bermuda corporations) respectively. At it
height, it not only either directly owned or controlled
all the diamond mines in South Africa. It also owned
diamond trading companies in England, Portugal, Israel,
Belgium, Holland and Switzerland
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...
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...
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...
Read more...
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...
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...
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...
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...
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....
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...
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......
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...
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....
|
The Long Arm of De Beers
