Worldwide, only one product, there is legal trading monopoly. These products include diamonds. Disclaimers instantly monopoly would undermine the diamond sector, triggering a sharp fall in prices, which led to the impoverishment of an entire continent of Africa. In that diamonds last forever, the world is convinced the advertising agents with Medison Avenue. Their campaign has created the desired demand for diamonds. One was a luxury anymore. Constant price maintained a monopoly on diamonds by De Beers during the entire twentieth century. Clearly it can be argued that this monopoly can not be legal in America, a country of competition, nevertheless it exists. And scary to think that it would be without it. In XIX century the diamond was just frosted crystal of pure carbon, formed by volcanic activity deep under the ground, under tremendous pressure and at very high temperature. The stock of stones was low, and no one was interested until the middle of the XIX century, when, in 1867, in line with the Orange River have been discovered huge deposits of diamonds.
The first diamond discovered 15-year-old boy named Erasmus Jacobs. He rested under a tree in the vicinity of Kimberley, and it drew attention to a brilliant white stones on the river bank. The boy gave him her younger sister. That called it "mooi kup", that the Afrikaans language means "beautiful stone." Mother Jacobs gave the stone a neighbor, who was struck by its beauty. The neighbor, after examining the stone, decided that he did not represent a special value, and sold it for a few rand trader Jack O'Reyli. Believing that the stone was still represents some value, he sold it to another trader, Lorenzo Boyesu. Boyes, in turn, sold the stone mineralogist, who found that the diamond has a weight of 21.25 carats. By that time, cut and polished diamonds, or diamonds, has been used in the jewelry industry.
Boyes agitated unsuccessfully explored territory where the stone was found. He was confident that there are still diamonds, although still in a small number of diamonds found only in China and India - areas with very different geological structure.
Soon, the diamonds were found in the vicinity of the river Waal. Among them was the famous white diamonds weighing 83.5 carats, called "the South African star, who was put on public display in Cape Town. It inspired many people to go to Houptaun (the place where the river flows into the Vaal Orange) for diamond mining on their subsequent resale.
In 1871, Johannes Nicholas de Beers, who held the farm in this region, sold his ownership group of investors for a sum equivalent to 200,000 euro today, retaining only a small percentage. At the same time, 18-year-old son of Vicar Cecil Rhodes to the wishes of his parents moved from the English village in South Africa. Rhodes with a childhood dream to study at Oxford University, but realized this desire hinder poverty and bad marks in school. He went in search of diamonds and founded his own digging. When two years later he returned to England, his condition was equivalent to today's 400,000 euro.
When Rhodes finally got the opportunity to study at Oxford, he discovered a lung disease, and he returned to South Africa, believing that it is to live no more than six months. In fact, he was destined to live another 28 years and make a great state in the diamond mines. But before Rhodes earned the money, he had to overcome another hurdle. The point is that the diamonds are extracted from the earth by means of steam shovels. It could get so many stones that the price they would have plummeted. There is a danger that the diamond will become the cheapest commodity. The high price of diamonds was due to their extremely rare.
Rhodes found all owners Copey and gathered them together. The resulting alliance was strong enough to keep the diamond under control and ensure their deficits.
In 1880, after 13 years after South Africa and found the first diamond, was organized by a joint stock company with limited liability "United mines De Beers. The company was headed by its founder Cecil Rhodes. It was named after Nicholas De Beers - the original owner of the farm, which has become a thriving colliery. This was the world's first large-scale monopoly, organized on the model of a French company that monopolized the extraction of copper, and its stock. Rhodes turned De Beers into a dynasty, which compete with anyone in the world was not under force.
De Beers bought all the major diamond mines in South Africa, except for Central Kimberley mines, owned by Barney Barnato who moved to South Africa in 1873 By 1887, Rhodes and Barnato - both are under forty, and - to control the two largest the world's diamond mines and were yarymi rivals. Rhodes advantage was that it maintained the largest bankers in Europe who believed that the diamond mines will be profitable only if it is a monopoly. Therefore, Rhodes was able to get a loan and buy a controlling stake in the Central Kimberley mines.
To make Barnato sell mine, "De Beers" flooded the market to its product, thus reducing the price of the diamonds. Barnato surrendered, and the copy went to De Beers. In so doing, established a monopoly which is not affected even in 1890 when the United States Congress adopted the Sherman Act, restricting the activities of monopolies. By that time in America, De Beers has already acted under the guise of other companies.
Rhodes kept under control more than 95 percent of the world diamond stockpile. He reduced the extraction of diamonds in Kimberley from three million to two million carats a year. Diamonds, he sold only through London. In east London, in the Hatton Garden, was founded by the syndicate, which brings together the wholesale diamond merchants. They resold the diamonds in Belgium, in Antwerp. Strangely enough, this system, covering three countries, worked perfectly, and De Beers adopted its world supremacy. Rhodes, the richest man, has devoted the last years of his life, the British Empire in Africa and colonized large parts of Central Africa. He was never married and died in 1901 at the age of 49 years, leaving his status for the Oxford material support future scientists. His death Breaks in the company of De Beers' gap, which is subsequently filled with a young German businessman Ernest Oppenheimer, who had arrived in South Africa in 1902
Oppenheimer was only 16 years old when he left the German city Fridburga and began sorting diamonds in London. Then he was sent to South Africa in Kimberley, where he led one of the representatives of De Beers. The leaders, who replaced Rhodes, did not have business skills. They relied on the success of previous years. The most serious error they made in 1908, ignoring the news of the opening of a large deposit of diamonds in the German Colony, in the 600 miles to the north-west of Kimberley (the territory of modern Namibia).
Oppenheimer went there to assess the damage. What he saw shocked him. This was the richest diamond mine in the world. She drew along the coast, and the locals dig out the diamonds right hands. Germany has destroyed the monopoly of De Beers, and just the beginning of World War II saved the company from bankruptcy.
Owners of Diamond Bank in Namibia were in a panic. They were afraid that their ownership will be expropriated by the British authorities. On that occasion, Oppenheimer organized a company of gold as the "Anglo-American Corporation." The company supports the British and German investors, as well as the American financier JP Morgan. He suggested that the German competitors to the transaction from which they were unable to refuse. He shares traded Anglo-American Corporation at Diamond Beach of Namibia.
The high price of diamonds is determined exclusively by their small number. If the diamonds out of control, the price of them would have been only 20 per cent of today.
Through the exchange of shares of Oppenheimer with the assistance of the Anglo-American Corporation has acquired a controlling stake in De Beers. In 1929, he headed the Board of Directors. Ideal using the military situation, he brought together all those involved in diamond mining, under one roof, and thus amassed a state. This he did brilliantly.
Oppenheimer refused to German citizenship and became a citizen of Britain. He received the title of a knight for services to the British Empire. But when Oppenheimer led diamond industry in order, Wall Street collapsed and the ensuing global economic slowdown has forced De Beers diamond with a decrease of two million carats in 1930, Up to 14,000 carats in 1933, In addition, diamond mines have been found throughout Africa, and cheap diamonds flooded the market. The company had to buy them to prevent price declines. In 1930, representatives of De Beers warned: "The success of the sale of diamonds is directly dependent on the faith of people in the fact that the diamond - is a rare and valuable stone".
Oppenheimer went on, all to convince potential customers that the scarcity of diamonds - not just an illusion. He closed the only mine in America in the south-west of Arkansas, after which De Beers' hit the courts for violation of the Sherman Act. However, the Ministry of Justice was unable to determine whether a mine is closed illegally, to establish a monopoly, or simply because they did not earn. In addition to the purchase and closing Copey, Oppenheimer, and bought up diamonds in order to maintain high prices. By that time, had already opened a new mine in the Belgian Congo, and diamond jewelry in a large number fled to the market. Actually, the market was not due to global economic recession, but De Beers continued to buy stones. By 1937, the company has accumulated nearly 40 million carats, representing a 20-year supply. The value of these stones was low, and supply of cash the company had already come to an end.
Oppenheimer was going to reset the supply of stones in the sea, to prevent the occurrence of diamond market in the event that the Company will be liquidated. He saved the two events. He signed an agreement for the purchase of all diamonds Belgian Congo, thus avoiding over-market. In addition, the company De Beers again saved another war - was discovered that diamonds can be used in industry, and was designed diamond grinding wheels. It was discovered field of application of diamond other than jewelry, and stones of poor quality, unsuitable for the manufacture of jewelry, now could levigate, who, after impregnating the special agents was an excellent abrasive material used in mass production of automobiles, airplanes and machines.
Suddenly, there was huge demand for "one diamond." As Europe prepared for war, Oppenheimer did not know a lack of buyers. Almaz has been the most solid of all the substances known to man, and that makes him indispensable in the production of arms and military engineering.
Members of anti-coalition wanted to have as many diamonds. President Roosevelt, worried that the global supply of diamonds completely under the control of De Beers, has ordered 6.5 million carats of diamond technology for subsequent storage on American soil. Oppenheimer declined from the transaction, fearing for their monopoly, since its depleted reserves of diamonds. He agreed to sell the United States to only one million carats of diamonds.
In addition, Oppenheimer sold the eight German stock Copey diamonds from the Belgian Congo for a price higher than the official 30 times. In 1943 the Roosevelt Administration, angry that Oppenheimer supported Germany, directed the representatives of the Ministry of Justice to begin a trial on the antitrust case against De Beers. In conducting the investigation were collected evidence of the desire of De Beers to establish a monopoly on the world diamond market. The Attorney General then stated: "The United States pay the monopoly price for the material needed for the industry during the war. If De Beers was an American company, there could be no doubt that he violated the antitrust laws."
However, the continuation of the case prevented the lack of jurisdiction. The point is that De Beers to sell their diamonds only to selected agents and did not trade in America - a transaction was in London. Once started the investigation, De Beers closed its accounts in American banks. The Attorney General knew that the chances given to De Beers to court small, and at the end of 1945 the case was closed. In the early seventies the Department of Justice again brought charges against De Beers. Using the complaints of customers who thought that they pay for technical diamonds are too expensive, Antitrust Division found that "De Beers" secretly bought controlling stakes in several American companies, trade technical diamonds. In December 1971 the grand jury was convened, and in the next few years, government lawyers questioned several dozen witnesses and carefully studied the tangled network of 300 companies that had shares Oppenheimer, in particular, of a controlling interest. Many of these companies were registered in Luxembourg, Liechtenstein, Switzerland and other countries friendly to the unification of Oppenheimer. It seemed, at the De Beers did not leave any loopholes in the process. When a South African lawyer brought charges against De Beers, a company representative simply tore the indictment letter, trampled him and vyshvyrnul officials from his office. Oppenheimer sold its offices in the Americas, and the Ministry of Justice had to be satisfied with a nominal victory. In fact, with De Beers was entered plea bargain in the least serious of crimes, namely the fixing of prices. For this deal, De Beers paid a number of minor penalties, and since there is no danger of monopoly.
Only one of De Beers came under serious threat when in the fifties was a synthetic diamond. Although he was fit only for industrial use, it was a blow to the monopoly of De Beers. However, simultaneously with the American corporation General Electric diamond synthesized and in Europe, with financial support from De Beers. Both companies are owned by the patent and, by mutual agreement, supervised production and price. Once again, the Ministry of Justice failed to prove the existence of monopolies, which certainly existed.
Successor Ernest Oppenheimer also successfully maintained a monopoly, like the founders of the company. And while the monopoly, diamonds will continue to be in the price. If the monopoly dissolved, a diamond will be just one of the most beautiful stones.
The first diamond discovered 15-year-old boy named Erasmus Jacobs. He rested under a tree in the vicinity of Kimberley, and it drew attention to a brilliant white stones on the river bank. The boy gave him her younger sister. That called it "mooi kup", that the Afrikaans language means "beautiful stone." Mother Jacobs gave the stone a neighbor, who was struck by its beauty. The neighbor, after examining the stone, decided that he did not represent a special value, and sold it for a few rand trader Jack O'Reyli. Believing that the stone was still represents some value, he sold it to another trader, Lorenzo Boyesu. Boyes, in turn, sold the stone mineralogist, who found that the diamond has a weight of 21.25 carats. By that time, cut and polished diamonds, or diamonds, has been used in the jewelry industry.
Boyes agitated unsuccessfully explored territory where the stone was found. He was confident that there are still diamonds, although still in a small number of diamonds found only in China and India - areas with very different geological structure.
Soon, the diamonds were found in the vicinity of the river Waal. Among them was the famous white diamonds weighing 83.5 carats, called "the South African star, who was put on public display in Cape Town. It inspired many people to go to Houptaun (the place where the river flows into the Vaal Orange) for diamond mining on their subsequent resale.
In 1871, Johannes Nicholas de Beers, who held the farm in this region, sold his ownership group of investors for a sum equivalent to 200,000 euro today, retaining only a small percentage. At the same time, 18-year-old son of Vicar Cecil Rhodes to the wishes of his parents moved from the English village in South Africa. Rhodes with a childhood dream to study at Oxford University, but realized this desire hinder poverty and bad marks in school. He went in search of diamonds and founded his own digging. When two years later he returned to England, his condition was equivalent to today's 400,000 euro.
When Rhodes finally got the opportunity to study at Oxford, he discovered a lung disease, and he returned to South Africa, believing that it is to live no more than six months. In fact, he was destined to live another 28 years and make a great state in the diamond mines. But before Rhodes earned the money, he had to overcome another hurdle. The point is that the diamonds are extracted from the earth by means of steam shovels. It could get so many stones that the price they would have plummeted. There is a danger that the diamond will become the cheapest commodity. The high price of diamonds was due to their extremely rare.
Rhodes found all owners Copey and gathered them together. The resulting alliance was strong enough to keep the diamond under control and ensure their deficits.
In 1880, after 13 years after South Africa and found the first diamond, was organized by a joint stock company with limited liability "United mines De Beers. The company was headed by its founder Cecil Rhodes. It was named after Nicholas De Beers - the original owner of the farm, which has become a thriving colliery. This was the world's first large-scale monopoly, organized on the model of a French company that monopolized the extraction of copper, and its stock. Rhodes turned De Beers into a dynasty, which compete with anyone in the world was not under force.
De Beers bought all the major diamond mines in South Africa, except for Central Kimberley mines, owned by Barney Barnato who moved to South Africa in 1873 By 1887, Rhodes and Barnato - both are under forty, and - to control the two largest the world's diamond mines and were yarymi rivals. Rhodes advantage was that it maintained the largest bankers in Europe who believed that the diamond mines will be profitable only if it is a monopoly. Therefore, Rhodes was able to get a loan and buy a controlling stake in the Central Kimberley mines.
To make Barnato sell mine, "De Beers" flooded the market to its product, thus reducing the price of the diamonds. Barnato surrendered, and the copy went to De Beers. In so doing, established a monopoly which is not affected even in 1890 when the United States Congress adopted the Sherman Act, restricting the activities of monopolies. By that time in America, De Beers has already acted under the guise of other companies.
Rhodes kept under control more than 95 percent of the world diamond stockpile. He reduced the extraction of diamonds in Kimberley from three million to two million carats a year. Diamonds, he sold only through London. In east London, in the Hatton Garden, was founded by the syndicate, which brings together the wholesale diamond merchants. They resold the diamonds in Belgium, in Antwerp. Strangely enough, this system, covering three countries, worked perfectly, and De Beers adopted its world supremacy. Rhodes, the richest man, has devoted the last years of his life, the British Empire in Africa and colonized large parts of Central Africa. He was never married and died in 1901 at the age of 49 years, leaving his status for the Oxford material support future scientists. His death Breaks in the company of De Beers' gap, which is subsequently filled with a young German businessman Ernest Oppenheimer, who had arrived in South Africa in 1902
Oppenheimer was only 16 years old when he left the German city Fridburga and began sorting diamonds in London. Then he was sent to South Africa in Kimberley, where he led one of the representatives of De Beers. The leaders, who replaced Rhodes, did not have business skills. They relied on the success of previous years. The most serious error they made in 1908, ignoring the news of the opening of a large deposit of diamonds in the German Colony, in the 600 miles to the north-west of Kimberley (the territory of modern Namibia).
Oppenheimer went there to assess the damage. What he saw shocked him. This was the richest diamond mine in the world. She drew along the coast, and the locals dig out the diamonds right hands. Germany has destroyed the monopoly of De Beers, and just the beginning of World War II saved the company from bankruptcy.
Owners of Diamond Bank in Namibia were in a panic. They were afraid that their ownership will be expropriated by the British authorities. On that occasion, Oppenheimer organized a company of gold as the "Anglo-American Corporation." The company supports the British and German investors, as well as the American financier JP Morgan. He suggested that the German competitors to the transaction from which they were unable to refuse. He shares traded Anglo-American Corporation at Diamond Beach of Namibia.
The high price of diamonds is determined exclusively by their small number. If the diamonds out of control, the price of them would have been only 20 per cent of today.
Through the exchange of shares of Oppenheimer with the assistance of the Anglo-American Corporation has acquired a controlling stake in De Beers. In 1929, he headed the Board of Directors. Ideal using the military situation, he brought together all those involved in diamond mining, under one roof, and thus amassed a state. This he did brilliantly.
Oppenheimer refused to German citizenship and became a citizen of Britain. He received the title of a knight for services to the British Empire. But when Oppenheimer led diamond industry in order, Wall Street collapsed and the ensuing global economic slowdown has forced De Beers diamond with a decrease of two million carats in 1930, Up to 14,000 carats in 1933, In addition, diamond mines have been found throughout Africa, and cheap diamonds flooded the market. The company had to buy them to prevent price declines. In 1930, representatives of De Beers warned: "The success of the sale of diamonds is directly dependent on the faith of people in the fact that the diamond - is a rare and valuable stone".
Oppenheimer went on, all to convince potential customers that the scarcity of diamonds - not just an illusion. He closed the only mine in America in the south-west of Arkansas, after which De Beers' hit the courts for violation of the Sherman Act. However, the Ministry of Justice was unable to determine whether a mine is closed illegally, to establish a monopoly, or simply because they did not earn. In addition to the purchase and closing Copey, Oppenheimer, and bought up diamonds in order to maintain high prices. By that time, had already opened a new mine in the Belgian Congo, and diamond jewelry in a large number fled to the market. Actually, the market was not due to global economic recession, but De Beers continued to buy stones. By 1937, the company has accumulated nearly 40 million carats, representing a 20-year supply. The value of these stones was low, and supply of cash the company had already come to an end.
Oppenheimer was going to reset the supply of stones in the sea, to prevent the occurrence of diamond market in the event that the Company will be liquidated. He saved the two events. He signed an agreement for the purchase of all diamonds Belgian Congo, thus avoiding over-market. In addition, the company De Beers again saved another war - was discovered that diamonds can be used in industry, and was designed diamond grinding wheels. It was discovered field of application of diamond other than jewelry, and stones of poor quality, unsuitable for the manufacture of jewelry, now could levigate, who, after impregnating the special agents was an excellent abrasive material used in mass production of automobiles, airplanes and machines.
Suddenly, there was huge demand for "one diamond." As Europe prepared for war, Oppenheimer did not know a lack of buyers. Almaz has been the most solid of all the substances known to man, and that makes him indispensable in the production of arms and military engineering.
Members of anti-coalition wanted to have as many diamonds. President Roosevelt, worried that the global supply of diamonds completely under the control of De Beers, has ordered 6.5 million carats of diamond technology for subsequent storage on American soil. Oppenheimer declined from the transaction, fearing for their monopoly, since its depleted reserves of diamonds. He agreed to sell the United States to only one million carats of diamonds.
In addition, Oppenheimer sold the eight German stock Copey diamonds from the Belgian Congo for a price higher than the official 30 times. In 1943 the Roosevelt Administration, angry that Oppenheimer supported Germany, directed the representatives of the Ministry of Justice to begin a trial on the antitrust case against De Beers. In conducting the investigation were collected evidence of the desire of De Beers to establish a monopoly on the world diamond market. The Attorney General then stated: "The United States pay the monopoly price for the material needed for the industry during the war. If De Beers was an American company, there could be no doubt that he violated the antitrust laws."
However, the continuation of the case prevented the lack of jurisdiction. The point is that De Beers to sell their diamonds only to selected agents and did not trade in America - a transaction was in London. Once started the investigation, De Beers closed its accounts in American banks. The Attorney General knew that the chances given to De Beers to court small, and at the end of 1945 the case was closed. In the early seventies the Department of Justice again brought charges against De Beers. Using the complaints of customers who thought that they pay for technical diamonds are too expensive, Antitrust Division found that "De Beers" secretly bought controlling stakes in several American companies, trade technical diamonds. In December 1971 the grand jury was convened, and in the next few years, government lawyers questioned several dozen witnesses and carefully studied the tangled network of 300 companies that had shares Oppenheimer, in particular, of a controlling interest. Many of these companies were registered in Luxembourg, Liechtenstein, Switzerland and other countries friendly to the unification of Oppenheimer. It seemed, at the De Beers did not leave any loopholes in the process. When a South African lawyer brought charges against De Beers, a company representative simply tore the indictment letter, trampled him and vyshvyrnul officials from his office. Oppenheimer sold its offices in the Americas, and the Ministry of Justice had to be satisfied with a nominal victory. In fact, with De Beers was entered plea bargain in the least serious of crimes, namely the fixing of prices. For this deal, De Beers paid a number of minor penalties, and since there is no danger of monopoly.
Only one of De Beers came under serious threat when in the fifties was a synthetic diamond. Although he was fit only for industrial use, it was a blow to the monopoly of De Beers. However, simultaneously with the American corporation General Electric diamond synthesized and in Europe, with financial support from De Beers. Both companies are owned by the patent and, by mutual agreement, supervised production and price. Once again, the Ministry of Justice failed to prove the existence of monopolies, which certainly existed.
Successor Ernest Oppenheimer also successfully maintained a monopoly, like the founders of the company. And while the monopoly, diamonds will continue to be in the price. If the monopoly dissolved, a diamond will be just one of the most beautiful stones.
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