• The Ancient Greeks thought
diamonds were splinters of
stars fallen to earth
• 75-120 miles below earth’s
surface, extreme heat and
pressure cause carbon
atoms to crystallize
• Diamonds are carried to the
earth’s surface during
volcanic eruptions, where
they must cool quickly or
turn into graphite or carbon
dioxide.
• Diamonds were first
discovered in river beds in
India in the 4th Century
BCE.
• The first recorded
diamond engagement ring
was given to the Duchess
of Burgundy in 1477,
though the tradition of
exchanging wedding rings
dates back as far back as
the 2nd century BCE.
• Before 1938, diamonds did
not hold the power that
they do today
– Average price of a diamond
was only $80 in N. America
• De Beers Diamond
Corporation decided to use
advertising and the media
to convince young men and
women that diamonds were
actually symbols of love.
• De Beers decided on a slogan: “A Diamond
is Forever”
• By 1950, 90% of young men proposed
marriage with a diamond ring
• It is common and expected that a man spend
at least one month’s salary to buy an
engagement ring, and that diamonds are the
only way to express true love.
• De Beers encouraged jewelers
to loan diamonds to Hollywood
stars for prestigious events,
solidifying the diamond’s
association with wealth, power,
prestige, and celebrity
• Diamond movement received
boost when Marilyn Monroe
starred in film “Gentlemen
Prefer Blonds”, sang the song,
“Diamonds are a girl’s best
friend”
• 70% of the world’s
diamonds come from
places where Africans
are indigenous to the
land
• Most of the diamond
deposits currently
mined in places such as
Sierra Leone and
Angola are alluvial,
requiring only a shovel,
a pan, and hard labor
to mine.
• The price of diamonds depends on the perception of
scarcity.
– Perception: Diamonds are rare = prices skyrocket
– Perception: Diamonds are plentiful = prices plummet
• Until 1870s, found only in river beds in India & Brazil
• 1870s large diamond deposits discovered in S. Africa
• A group of diamond investors formed De Beers
Consolidated Mines, Ltd. to help control diamond
production, thereby perpetuating the illusion of scarcity.
1200
1000
800
600
400
200
0
Pre-1870s
1870s
Total # of Diamonds
Formation of
De Beers
Price Per Diamond
• Before 1870, why were
diamonds so expensive?
• How did DeBeers Diamond
Corporation impact the
perception of diamonds in
society?
• What is the “illusion of
scarcity”?
• The artificially high price of diamonds has
encouraged rebels to take control of
diamond mining areas in hopes of making a
quick and substantial profit.
• Rebel groups such as the RUF (the
Revolutionary United Front) in Sierra Leone,
force civilians to mine for diamonds.
• The Term “Blood Diamond” is used to
describe a diamond mined in a war zone,
and usually used to finance that war.
• Other terms for Blood Diamonds are:
– Dirty Diamonds
– Conflict Diamonds
– War Diamonds.
• Rebel groups use the profits (up to $300
million a year) to buy small arms and
supplies to wage war
• Over 6 million people from Sierra Leone,
Angola, Liberia, and the Democratic
Republic of the Congo have become refugees
after being forced from their homes by
diamond fueled conflict.
• Millions more have died in diamond related
conflicts over the past decade.
• Rebel cruelty in many
conflict areas is well
documented, and
includes
– Abduction and training
of child soldiers
– Amputation
– Abduction of males as
diamond mine workers
– Atrocities against
women
• The Kimberley Process (2003)requires
participants to certify that shipments of
rough diamonds are conflict free
• The diamond industry also voluntarily
agreed to implement a System of
Warranties, designed to help trace rough
diamonds from mining to point of sale.
• Because diamonds are small and easy to
transport, it is difficult to track all diamonds
leaving a given country.
• Diamonds from conflict regions are often
mixed with legitimate diamonds and
certified as conflict free.