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The "DeBeers monopoly" is a myth that can't seem to die. They do not have a monopoly and haven't in many years(1) (Anglo American = DeBeers). "Market controll

The "DeBeers monopoly" is a myth that can't seem to die. They do not have a monopoly and haven't in many years(1) (Anglo American = DeBeers). "Market controlled" is also a myth, as almost all diamonds today are valued through regularly scheduled auctions (2). (1) https://www.statista.com/statistics/585450/market-share-of-diamond-supply-worldwide-by-producer/ https://www.statista.com/statistics/585450/market-share-of-d... (2) https://secure.debeersgroup.com/content/de-beers-auction-sales/auction-site/en/auctions.html https://secure.debeersgroup.com/content/de-beers-auction-sal...

OhSoHumble 8y ago
The first source is behind a paywall, no?
- bluedevil2k 8y ago
  Weird, wasn't when I first went to it. Summary was Alrosa (Russia) has 27% share, Anglo American (DeBeers) has 22%, another dozen or so share the next 40%.
lurquer 8y ago
Louis Vitton does not have a monopoly on purses. Nevertheless, it's marketing efforts (along with Gucci, and the others) has created the perception that purses are a luxury good. Ditto with diamonds. DeBeers associated this relatively common gem with luxury. From that point, the economics are driven by women. A woman does not want a cheap purse. A fiancée does not want a cheap diamond. The quality is irrelevant. What matters is how much the guy sacrificed for her. Sort of silly and irrational. But, it's true.
eggy 8y ago
You may be right; I'll have to look into it for myself. I am for free markets, but I had read, and I will need to confirm if this is still true, that diamonds are plentiful, so the raw stock before cutting and them should be cheaper than current market price due to keeping them in stores to maintain an inflated price. Whether that's De Beers acting alone with its market share as you cited, or two or three other companies colluding on this scheme to keep an inflated market value or not, I need to confirm.

OhSoHumble 8y ago

The first source is behind a paywall, no?

bluedevil2k 8y ago
Weird, wasn't when I first went to it. Summary was Alrosa (Russia) has 27% share, Anglo American (DeBeers) has 22%, another dozen or so share the next 40%.

lurquer 8y ago

Louis Vitton does not have a monopoly on purses. Nevertheless, it's marketing efforts (along with Gucci, and the others) has created the perception that purses are a luxury good. Ditto with diamonds. DeBeers associated this relatively common gem with luxury. From that point, the economics are driven by women. A woman does not want a cheap purse. A fiancée does not want a cheap diamond. The quality is irrelevant. What matters is how much the guy sacrificed for her. Sort of silly and irrational. But, it's true.

eggy 8y ago

You may be right; I'll have to look into it for myself. I am for free markets, but I had read, and I will need to confirm if this is still true, that diamonds are plentiful, so the raw stock before cutting and them should be cheaper than current market price due to keeping them in stores to maintain an inflated price. Whether that's De Beers acting alone with its market share as you cited, or two or three other companies colluding on this scheme to keep an inflated market value or not, I need to confirm.