Diamonds have long been one of the most precious jewels. But it wasn’t always like that. Sparkling diamonds adorned clothes and necks of glamorous ladies all over the world only in XX century, when diamond jewellery has made a breakthrough, making millions of young men buy a gem for their beloved ones. But have you ever thought about who produces diamonds and how do they get to the stores? Let’s try to get to the back of diamond market.
Mined diamonds are divided into two categories according to their quality characteristics: jewelry and technical. The first category is used for the diamond jewelry, the second one — for industrial purposes (production of drills, saws and abrasive powders). Jewelry diamonds are sorted by size, color, quality and shape before they are sold, and then depending on the quality of the raw materials, the current state of the market, the adopted marketing policy various companies sell diamonds on sites, tenders, auctions or long-term contracts. This is what they want you to believe.
The truth is that the leaders of the world diamond mining industry are two Russian companies: Alrosa and De Beers. Thanks to their top position small miners have to cooperate with them, selling their riches at rock-bottom prices, which monopolized giants set. World diamond market is an inclosed instituition. There are 31 exchanges with the same policies and guidelines. They do not sign any contracts and paper agreements, they just shake hands to make a deal, since all of the participants are familiar with each other.
The majority of traders may deal oil, gold, emeralds but can’t trade mined diamonds. What happen if the world learn that diamonds price is saturated? Apparently, the prices will decrease and a century-long monopoly will be defeated. We will build an open diamond exchange accessible for everyone.