Is the diamond industry a cartel?

Is the diamond business a cartel?

While a diamond might be forever, the diamond cartel clearly is not. The diamond industry, which for many years was dominated by the South African De Beers cartel, has undergone tremendous change over the last two decades and now faces an uncertain future.

How bad is the diamond industry?

Due to poor planning and weak regulation, diamond mining has caused environmental devastation, severely damaging the land and water. This irresponsible mining has caused soil erosion and deforestation, and has forced local communities to relocate.

Is the diamond industry an oligopoly?

Today, the diamond industry shows every sign of a typically oligopolistic market. The two largest players in the industry enjoy a strong market share of 62.5% as well as the power to set selling prices for their diamonds. The third, fourth and fifth largest players together enjoy 20.2% of market share.

Are diamonds controlled?

Today, De Beers no longer has control of the diamond industry, and for the first time in a century, market supply and demand dynamics, not the De Beers monopoly, drives diamond prices. … (DTC), was a system put in place that gave De Beers complete control and discretion to distribute the majority of the world’s diamonds.

Who is the CEO of De Beers?

Are diamonds really worthless?

Diamonds are intrinsically worthless: Former De Beers chairman (and billionaire) Nicky Oppenheimer once succinctly explained, “diamonds are intrinsically worthless.” Diamonds aren’t forever: They actually decay, faster than most rocks.

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Who owns De Beers?

Is the diamond trade ethical?

As much as ethically minded consumers would like to believe, and despite what some conscientious diamond purveyors tell you, diamonds are not traceable to their origins like fair trade coffee beans or organic produce. From mining to selling, diamonds pass through many hands, not all of them honest.