De Beers gained control over the rough diamond distribution by successfully influencing other suppliers to sell through their channel. At one point, they controlled 80-85%. The price of diamond is decided based on various factors. Africa produces 51% diamonds globally by weight and 66% by value. Botswana’s trade value was nearly 1.5 times higher than Russia’s in 2022, despite producing only 59% of Russia’s diamond weight.
De Beers in the Market
De Beers specializes in diamond exploration, mining, trading, retail, and manufacturing. At its peak, it owned 85% of the market. Russia and Botswana hold the world’s largest diamond reserves. Based on production volume, Russia and the Congo are the largest producers.
Impact on Diamond Market
De Beers creates a monopoly that often controls the supply, price, and quality of diamonds. The market is also heavily influenced by economic environment, political factors, and consumer demand.
The diamond market has evolved throughout the years. Discover what it looks like today and how it changed over the years.
Who is the owner of Diamond Comics?
Although Okavango Diamond Company specializes in distributing rough diamonds, the growing need for rough diamonds in the US market has contributed to the company’s growth.
De Beers controlled 80-85% of rough diamond distribution and was considered a monopoly until the 21st century. China and Hong Kong account for 30% of India’s diamond exports. Exporters have started looking at new markets in Asia.
De Beers participates in most facets of the diamond industry, including mining, trading, and retail. It was founded by Cecil Rhodes, financed by Alfred Beit and N M Rothschild & Sons bank. In 1926, Ernest Oppenheimer, who had founded Anglo American, took control.
Over the years, De Beers leveraged its dominant position to influence the international diamond market. First, it attempted to convince independent producers to join its single channel monopoly.