De Beers Consolidated Mines of South Africa, the sole middleman in a diamond cartel known as the De Beers', controls 80% of the world's uncut diamond market. It is again flourishing after near extinction in 1983, having convinced the industry it was indispensable by putting millions into diamond promotion, forcing members to rejoin by dumping diamonds, and boycotting dealers who reject offered merchandise. Syndicate rise dates from 1938 when it began urging couples to buy diamond engagement rings. Future challenges include nations wanting more control over distribution, cheaper diamonds on the market, and a possible US ban on South African diamond imports.
De Beers Consolidated Mines of South Africa, the sole middleman in a diamond cartel known as the Syndicate, controls 80% of the world's uncut diamond market. It is again flourishing after near extinction in 1983, having convinced the industry it was indispensable by putting millions into diamond promotion, forcing members to rejoin by dumping diamonds, and boycotting dealers who reject offered merchandise. De Beers' rise dates from 1938 when it began urging couples to buy diamond engagement rings. Future challenges include nations wanting more control over distribution, cheaper diamonds on the market, and a possible US ban on South African diamond imports.