Some scientists claim that Jupiter and Saturn receive 10 million tons of diamonds per year. These stones eventually melt into hot, liquid seas on the same planets. However, if diamonds are superfluous on these planets, then on Earth it seems that there are not so few of them in the earth's crust. This was the biggest risk for DeBeers, diamonds were valuable, so any deposit was interesting to mine. And if more diamonds were put on the market, they would fall in price.
In 1902, another mine was discovered in South Africa with diamond levels
equivalent to all DeBeers mines. At first, the owners were not very interested
in joining DeBeers, but after a few years that changed.
In 1957, diamond mines were discovered in Siberia, which, although they
contained diamonds smaller than African ones, could reduce the price. DeBeers
was smart and was able to reach an agreement with the Soviet Union and the
communists, so they agreed to buy all of their products and thus make them part
of the cartel.
How Ceuta and Melilla live: military bases, some
online gambling and a huge dependence on trade with Morocco
In the 1970s, due to hyperinflation in Israel, many diamonds were used
in this country as collateral for loans. Many traders in this country began to
accumulate diamonds for the purpose of resale, which led to a rise in the price
of diamonds. This worried DeBeers as they could bring down the price. (DeBeers
has always tried to prevent the resale of diamonds.)
At DeBeers, in order to drive out speculators, he prepared the number of
diamonds that could be sold at any time (so that speculators would see that
diamonds could be risky investments), on the other hand, he reduced the supply
to Israeli representatives by 20%. In the end, he eventually drove the Israelis
out of the diamond union, and many traders lost access to CSOs' circle of
trust. One in four workers in the Israeli diamond industry lost their jobs this
decade.
These moves to defend their monopoly have never been easy for DeBeers,
not the first time it has had to buy back large quantities of diamonds just to
keep the price high.
Later, deposits of colored diamonds were discovered in Australia
(diamond is not necessarily transparent). By selling them through other
marketing, he did not come into conflict with DeBeers, who never saw colored
diamonds as an important part of his strategy. In response, DeBeers flooded the
market with colored diamonds in the 1990s.
Also in the 1990s, due to the discovery of new diamond deposits in
Canada, DeBeers set out to capture the maximum in this market, as some
estimates indicated that their cartel would cease to exist. While DeBeers mines
Canadian diamonds, it has also entered into agreements with mining company
Broken Hill Proprietary to sell diamonds through its CSO since 1999.
However, if DeBeers began to control 85 to 90% of the world's diamond
production, this has changed slightly in recent years. Currently, due to
competition from new fields, it is estimated that it controls 30 to 40% of
world production. Manufacturers from other parts of the world such as
Australia, Canada or Russia no longer want to pass through the hands of
DeBeers.
How did DeBeers avoid US antitrust laws? Among other reasons, because
for decades he was not present in the United States, only through his
advertising agency. Because if DeBeers was the master of supply management, she
was also masterful at manipulating demand.
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