Business Wars Diamond Wars | Monopolies Aren’t Forever | 6
Jul 13, 2020
In the late 1990s, the dark truth of blood diamonds surfaces as rebel armies fund terror with these gems. De Beers faces growing scrutiny, prompting a pivotal shift towards ethical branding. The tension at a 1996 Mumbai conference highlights industry fears over falling prices and De Beers' dominance. A glamorous London launch in 2002 reveals the stakes involved with high-value diamonds, while the mid-2000s usher in a wave of competition and new threats, including the impact of the Blood Diamond film and synthetic alternatives.
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De Beers' Retaliation
- De Beers punished Argyle for leaving its cartel by flooding the market with similar diamonds, crashing prices.
- This tactic squeezed Indian manufacturers who relied on Argyle's stones.
De Beers' Weakening Grip
- Despite controlling the diamond market for over a century, De Beers' grip is weakening.
- The company questions if maintaining its monopoly is worthwhile.
Blood Diamond Trade
- An arms dealer named Adrian trades weapons for blood diamonds with Unita in Angola.
- He then sells these diamonds in Antwerp, where they are mixed with legitimate stones, making them untraceable.