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| Yes | 41% | 12 votes | Total: 29 votes | |
| No | 59% | 17 votes |
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Add to FavoritesClearly, taking the yes side of this discussion is a bit risky. There are no hard facts, no dates of arrival, no names of note to quote, and, in the end, perhaps it is just wishful thinking. Besides why would anyone want the marketplace to be based on supply and demand, such as it markets gold, semi-precious stones, or silver? There are lots of diamonds available, from countries other than South Africa, such as Australia and Russia. It's a well known fact that the number of diamonds available globally are controlled, creating a major bling illusion, and bringing huge amounts of money into the coffers of the huge De Beers Cartel.
A flashy diamond from a reliable company is bling at its' best. There is no question about that. The De Beers Cartel has their hands on the tools that dig them out of the ground, and take them through each and every stage of their evolution into exquisite jewelry. They also pocket all the change along the way. No matter, they have convinced the world that "a diamond is forever.' It's a very hard substance, and likely to last, no argument there. It's too bad, that slogan doesn't foreshadow the success for the wearer. Diamonds survive divorce too.
It seems to me diamonds should be sold based on their color, clarity, weight, size, and the cut. The showcases in jewelry stores ought to be full of beautiful, and affordable diamonds. They would be just as beautiful if they were less expensive. Perhaps the diamond engagement ring carries the wonder, and weight, of a dowry, which is not a tradition in every country. That is certainly something to consider.
Another thought. Perhaps if the cost of diamonds were adjusted for their real availability, the law enforcement burden would be reduced. There would be less crime involving the theft of diamonds, and diamond jewelry. Insurance companies would be required to pay less to customers claiming the loss of their family heirlooms. People everywhere would enjoy their bling for it's real sentimental value, not the value forced upon it by the De Beers Cartel.
Diamond encrusted watches, necklaces, crowns, and even shoes, are splendid to behold. They would be just as magnificent if they didn't bankrupt the buyer, or cause a credit card emergency. I like shiny stuff. Perhaps I would enjoy diamonds more, if they were more available at a better price. Just imagine all the glitter and bling to delight us if De Beers would just relax, and share the real bounty of diamonds with the rest of us.
Learn more about this author, Jacquie Schmall.
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No
I previewed the questions presented by Helium.com prior to my trip to Las Vegas last week. I was awarded Press Passes to two of the world's most prestigious Jewelry shows, and I wanted to gear my thoughts around what people seemed to be inquiring about. I was intrigued with this particular question,..."Are the days of the De Beers diamond cartel numbered?", and was fortunate enough to discuss this idea with a distinctive and highly knowledgeable gentleman from Israel.
Debeers is a privately held company founded in 1888, by Cecil Rhodes and is headquartered in Johannesburg, South Africa. The industry revolves around exploration, mining and trading of diamonds. The services provided are diamond marketing, diamond promotion, and community development. The revenue for 2005 in the US was $6.5 billion, while the net income was $554 million. It employs approximately 20,000. Website www.debeersgroup.com .
In the year 2000, Advertising Age magazine named "A Diamond Is Forever", the best advertising slogan of the twentieth century, Yes, diamonds are formed deep within Mother Nature, and can take millions of years to form, but that doesn't examine the question about Debeers, now does it?
The J.C.K. Luxury Las Vegas Event was being held in The Venetian Resort, so early in the morning I had ventured into the massive hotel full of noise and activity from the night before, and rattled down the hallways with my computer notebook case on wheels behind me.I traversed the Palazzo bridge and entered into the Wynn, the site of my day's projects. These two giant hotels were both housing jewelry events, I was headed to visit the Couture Show. Ballroom after ballroom was lined with sophisticated proprietors, curiously examining me as I approached with my questions and confident attitude. This was not my first rodeo. I have a background in sales of high end jewelry and have studied Diamond Grading at the Gemological Institute of America. While attending a breakfast for "America's Best Jewelers", I learned of a mini-conference called Diamond Issues coming up in the afternoon.
Being both early to the session, and born with an inquisitive mind, I managed to get the ear of the guest speaker himself, Mr. Gill Goshen, VP, Business Development. www.arabovgroup.com. I posed our question to him.He gravitated to the complexity of the answer and remarked that it would take another full session. His firm is Arabov Group Diamond Manufacturers, and was very well-heeled in the industry and it's trends. His comment was that Debeers may have had 80% of the worldwide trade in a previous era, but that today it may be as low as 40%. The following notes came from the Diamond Issues session, but I wanted to make note of the comment regarding Debeers.
Regarding the Diamond industry in general, demand has fallen, supply is inconsistent, and there is less credit available. I do not mean consumer credit, where the end result is the purchase, within the industry players themselves. A year ago, a jeweler could request several large stones on "memo", but those days are over. Most buying segments are bleeding, however, Bridal is still strong. Across the industry everyone is discounting to maintain cash flow, at the expense of flawed long term planning. Profitability is diminishing as the price shifts occur daily.
Within the last 10 years, Debeers shifted from being a supply house only, to opening shops to market to the public themselves. In 2001, DeBeers entered into a retail joint venture with French luxury goods company Louis Vuitton Moet Hennessy. The list of shops began in London at Bond Street, Royal Exchange, Harrods and Westfield, New York City at Fifth Avenue, Beverly Hills at Rodeo Drive, Las Vegas at The Forum Shops, Houston at The Galleria, McLean, Virginia at Tysons Galleria, NorthPark Center, San Francisco at Union Square, Naples, Florida at Waterside Sops, Costa Mesa at South Coast Plaza, Bal Harbour at Bal Harbour Shops, Paris at Le Printemps, Moscow in Russia, Kiev in Ukraine, Tokyo, Osaka, Hakata, Yokohama, Kyoto, and Kobe in Japan Taiwan in Taipei, Korea in Seoul, Waikiki, and lastly in Dubai at Mall of the Emirates, International Financial Center, and Wafi City. A giant diamond marketing concern....
Many shifts in the worldwide market have affected the DeBeers domination. None of us can know how the daily changes of technology, politics, sales on the Internet, or economic pressures on the consumer will ultimately bear on the luxury market of diamond buying. It might again push its way into the royal families of the world and no longer be available to the masses, as it had begun its history.
Having spent a week at an International Jewelry Marketplace, laced with designers and Haute Couture embellishment, having witnessed the very best and most luxurious offerings the industry, participated in judging The Best Of Show, and stared and gawked at unspeakable beauty of the stones and artistry of the world's finest artisans, I went back to my modest hotel room and removed the two Press Passes from my weary neck. For me, the most valuable jewelry were those two plastic badges knotted onto ribbons, allowing me into this private and exclusive enclave, and recognizing my professionalism in the joint industries of both Fine Jewels and Journalism.
Learn more about this author, Peggy Molloy.
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