by Joseph Malek

Created on: June 13, 2008   Last Updated: March 07, 2011

DeBeers, for all practical purposes, does have a monopoly on the World's supply of uncut diamonds that they mine and sell to the jewelry makers of the entire World. They do mine and sell most of those diamonds that are mined each year, but there are other people who do find diamonds and other gemstones which they too sell to jewelers.

Be that as it may, DeBeers sets the price for all of their uncut diamonds and the jeweler who wants to buy those uncut diamonds from DeBeers must pay the asking price for the box of uncut diamonds that is offered for purchase or go home with nothing. As such, DeBeers has made a select group of people filthy rich, while the little guy within the jewelry business can not afford to pay the asking price of the initial purchase or any subsequent purchase of diamonds from that huge diamond mining company.

If that is not bad enough, DeBeers controls the quantity of diamonds that they do sell each year, in order to keep the price of jewelry grade diamonds high, in spite of the fact that they have many tons of diamonds within their inventory that were mined and can easily be sold.

If they did sell their available inventory of uncut diamonds, within a very short time the price of all of the World's diamonds would drop just as fast as a rock sinking in the ocean. They would no longer be a beautiful status symbol of the women of the filthy rich or for those who are financially well-off.

As a matter of fact, if the price of diamonds suddenly dropped, millions of people would lose money or be financially ruined. That fact alone is the reason why the business practices of DeBeers are allowed to continue. They found a fortune because of the values and the traditions other people and those societies that do require those people to buy those very high priced jewelry grade diamonds.

No doubt, as the World's population of people grows, so too, DeBeers will continue to prosper because they will most certainly make money for themselves and the World's jewelers who buy those diamonds by controlling, to a great degree, the amount of uncut jewelry grade diamonds that reach the market each and every year for as long as they remain the major providers of that product.

What will you buy for your loved one? One American tradition to obey is for that guy who is in love and seeks marriage must buy a diamond engagement ring, which he will give to the lady of his desire, should that lady also desire the long term company of that guy in question.

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