| Abstract: | ![]()
The diamond cartel has remained effective in controlling diamond supplies and prices for a longer period than any other major minerals cartel in the twentieth century. This paper examines the diamond pipeline from mine to the jewellery market. Particular attention is given to the characteristics of diamonds and of the industry structure that make the long-term stability of the cartel possible. The strategies of De Beers Consolidated Diamond Mines in controlling rough gem supplies and prices are examined, and projections are made to 2000. The paper shows that in spite of a projected decrease in the share of total diamond production sold through the De Beers' cartel in the 1990s, the cartel is expected to continue effectively to control supplies and prices. |
