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Article: Washed out of Africa.(De Beers diamond cartel wants to become luxury-goods firm)(Company Profile)
- Article from:
- The Economist (US)
- Article date:
- June 3, 2000
CopyrightCOPYRIGHT 2000 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The De Beers diamond cartel is seeking to transform itself into a modern luxury-goods firm. The changing economics of the business, as much as the new politics of "conflict" diamonds, explains why
PICTURE the perfect De Beers moment. After a romantic dinner in New York, the young banker reaches into his pocket. He has spent months' worth of his inflated salary at Tiffany's on a diamond engagement ring, as a token of love for his fiancee. But now picture the couple leaving, covered in red paint thrown by demonstrators screaming about her hand being tainted in blood.
Such a confrontation has not happened--yet. But the De Beers diamond cartel is an obvious ...