The "Diamond Cartel" primarily refers to the historic monopoly maintained by , which controlled up to 90% of the world’s diamond supply for over a century. This guide outlines how they operated, their marketing genius, and why their absolute control eventually faded. 1. The Strategy: Artificial Scarcity
: During economic downturns, like the Great Depression, the cartel would withhold supply and stockpile diamonds to keep prices from falling. Diamond Cartel
: "Sightholders" (authorized buyers) were offered "boxes" of diamonds at a fixed price with no room for negotiation . If a buyer refused a box or tried to resell rough stones elsewhere, they were blacklisted from future sales. 2. Marketing: "A Diamond is Forever" The "Diamond Cartel" primarily refers to the historic
: De Beers formed the Central Selling Organization (CSO) to act as a single gateway. They bought rough stones from other miners to prevent them from hitting the open market and lowering prices. like the Great Depression
Since diamonds have little practical "use-value" for consumers, De Beers had to create a psychological one. Why The Diamond Cartel Is So Long Lasting Economics Essay
The cartel's primary goal was to ensure diamonds remained expensive despite being relatively abundant in nature.