In which case why do diamonds need de beers and the

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Unformatted text preview: e troubles vindicate the work of the cartel, or the "single-channel marketing" system, as the company prefers to call it. "My belief", says Nicky Oppenheimer, "is that if the Australians had signed a contract with us, the fall in prices that one has seen at the lower end would not have taken place." A cautionary tale: quit, and suffer the muscle of De Beers. Stay, and the fantastic illusion is sustained. De Beers’s executives, naturally, deny that there is an illusion at all. "I don’t think it is a bubble that can be burst," declares Mr Oppenheimer. But they rely on curiously circular logic. De Beers insists that it does not keep diamond prices artificially high. Diamonds, goes the argument, are special: they have a mystique tracing back to times of Indian maharajas and Arabian princes; they are the hardest substance on earth; and "they simply sparkle more". In which case, why do diamonds need De Beers and the CSO? Ah, comes the reply, we need to maintain price stability i...
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This document was uploaded on 01/19/2014.

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