The De Beers' diamond cartel faces declining sales because of slowing economies, high interest rates and price increases. Also, newly energized black majorities are pressuring it to give producers better terms. South Africa's major sources of wealth may be nationalized and Namibia may demand a one-fifth stake in De Beers'' local subsidiary. To limit risk, De Beers' is moving half its interests to Switzerland. De Beers' was formed in 1888 by British colonialist Cecil Rhodes. Diamond merchant Ernest Oppenheimer became board chairman in 1929 and formed the cartel, led after him by his son Harry who made the company more international and less vulnerable.
The De Beers diamond cartel faces declining sales because of slowing economies, high interest rates and price increases. Also, newly energized black majorities are pressuring it to give producers better terms. South Africa's major sources of wealth may be nationalized and Namibia may demand a one-fifth stake in De Beers' local subsidiary. To limit risk, De Beers is moving half its interests to Switzerland. De Beers was formed in 1888 by British colonialist Cecil Rhodes. Diamond merchant Ernest Oppenheimer became board chairman in 1929 and formed the cartel, led after him by his son Harry who made the company more international and less vulnerable.