Throughout time an illusion was created in society that diamonds are rare however that is

actually a myth. The truth is one family gained control of the diamond trade that created this

illusion. Diamonds came from organization run by Oppenheimer company called De Beers and

only sight-holders trade with them. De Beers control the market by distributing to cutters in short

supply and withhold them in abundance. The reason the diamond cartel lasted for seventy years

is that it was controlled by one single company. De Beers had a strong influence in the birth of

the diamond market. It was also controlled by a South African company; Anglo America and

they are controlled by De Beers. However, they did struggle to bring the South African company

to America. But diamond dealer club in New York proved their success as the cartel still runs

where club members are small traders who buy and sell stones. De Beers maintain the price in

the Charterhouse Street site in London. De Beers controled80% of whole world’s supply of gems

and makes a successful business monopoly. Ernest Oppenheimer, a young German-born

diamond dealer became chairman of De Beers in 1929 which began the rising success of its

fortune. Their territory for diamond mining was forbidden. De Beers also led successful

campaigns and sold almost 2 billion by early 80’s. Hollywood’s influence and featuring

diamonds in films and plays shaped people’s perception of diamonds and how valuable they

were. Harry Oppenheimer inherited the diamond empire from his father but established by Cecil

Rhodes in 1880s. Rhodes introduced tax laws to bring labor to mines and interest of diamond

trade with the state. If De Beers were to stop producing diamonds it would be serious for

economy since over the last 15 years it has increased in the world market. Canada estimate tens

of millions of gem stones there and 70% of Japanese brides wear diamond rings.