DeBeers NY Times add

[Karl_K]

I found it interesting.
"While several countries around the world produce natural diamonds, few have been as successful as Botswana. Here, two experts in their fields explore the country’s development — a journey that begins deep underground and continues with soaring ambitions."

PAID POST by De Beers — Botswana

Diamonds have shaped Botswana’s economy, society and environment. Three experts share how the country is building on this legacy to shape its future.

www.nytimes.com

Thank you @Chelsea Palmer for pointing it out!

 

[Karl_K]

My first thought was if they are going to be serious about this then tracing needs to be implemented so you can know where the rough for your stone was mined in.

 

[Chelsea Palmer]

I found it interesting.
"While several countries around the world produce natural diamonds, few have been as successful as Botswana. Here, two experts in their fields explore the country’s development — a journey that begins deep underground and continues with soaring ambitions."

PAID POST by De Beers — Botswana

Diamonds have shaped Botswana’s economy, society and environment. Three experts share how the country is building on this legacy to shape its future.

www.nytimes.com

Thank you @Chelsea Palmer for pointing it out!

My pleasure,Karl K. I just wish I knew how to post better than the way I did. I have not yet read the story myself, but look forward to doing so.

 

[Garry H (Cut Nut)]

My first thought was if they are going to be serious about this then tracing needs to be implemented so you can know where the rough for your stone was mined in.

They have Tracr - it is a WIP.

 

[kenny]

They have Tracr - it is a WIP.

What is Tracr?
What is WIP?

 

[MackPUK]

What is Tracr?
What is WIP?

Tracr

Tracr™ is the world’s leading digital platform for tracing natural diamonds from source to consumer, bringing you the ability to explore the provenance, authenticity and unique story of your diamond.

www.tracr.com

I guess WIP = Work In Progress

 

[Garry H (Cut Nut)]

What is Tracr?
What is WIP?

Trace is De Beers funded origin tracking system. Magnanimously being provided free for artisanal miners as well as DB and also being made available for others I believe.

Work in Progress

 

[Texas Leaguer]

This is the kind of PR we need much more of. There have been substantial efforts by many parties for most of this new millenium to advance sustainability and economic development in diamond producing countries. And much of the success of those efforts has either gone under-reported or the narrative of social responsibility has been misreprented. Actually it's both.

Beneficiation is, in my mind, the real difference between the natural diamond industry and synthetics from a social responsibility perspective as neither have a clear advantage in terms of environmental protection.

 

[Garry H (Cut Nut)]

This is the kind of PR we need much more of. There have been substantial efforts by many parties for most of this new millenium to advance sustainability and economic development in diamond producing countries. And much of the success of those efforts has either gone under-reported or the narrative of social responsibility has been misreprented. Actually it's both.

Beneficiation is, in my mind, the real difference between the natural diamond industry and synthetics from a social responsibility perspective as neither have a clear advantage in terms of environmental protection.

True Bryan.
I have come to an understanding as to why diamonds are given such a bad rap in news media:
The obvious is they are an ultimate status symbol and open to a good whipping ant chance.
The main issue however is the Atlantic Mag article by Epstein in 1982. This article has been referenced and used by journalist professors and every writer was trained on it.
We all know DeBeers was a monopolist, yes?
In what way? What did they do?
Fake news.

 

[Texas Leaguer]

True Bryan.
I have come to an understanding as to why diamonds are given such a bad rap in news media:
The obvious is they are an ultimate status symbol and open to a good whipping ant chance.
The main issue however is the Atlantic Mag article by Epstein in 1982. This article has been referenced and used by journalist professors and every writer was trained on it.
We all know DeBeers was a monopolist, yes?
In what way? What did they do?
Fake news.

I think the media also had a juicy target to perpetuate a sensational narative. It has all the components around which to spin a sexy drama; the evil corporation, guns and money, glamour and intrique. Not only did journalists pile on, but they didn't want to let it go. There were many more clicks to be had by creating continuing versions of the "evil empire" narrative than by reporting on environmental mitigation or community development through the large scale collaborative efforts of nations, industry, and NGOs.

 

[Chelsea Palmer]

I think the Wall Street Journal just published an article about DeBeers but I can’t figure out how to post the link.

 

[Karl_K]

I think the Wall Street Journal just published an article about DeBeers but I can’t figure out how to post the link.

Its sad its more a commercial than reporting.

https://www.wsj.com/business/retail/de-beers-diamonds-price-lab-grown-468b33ab

 

[MMtwo]

But here’s the thing: when everyone can have the same thing, it starts to lose that sense of being special. That’s just how supply and demand works. Lab-grown diamonds are mass-produced and unlimited, so prices stay low and they risk becoming more like a commodity than a luxury.

Natural diamonds, on the other hand, are limited. As supply shrinks, I think demand will swing back around—especially for people who want something rare, symbolic, or long-term in value.

Edit: I have enjoyed my honking big lab diamonds for a few years. Nothing wrong and a far bit better than some of the old frozen spit diamonds that people used to buy. But personally, natural is more valued, even when not as white, bright and fine.

 

[Garry H (Cut Nut)]

I think the media also had a juicy target to perpetuate a sensational narative. It has all the components around which to spin a sexy drama; the evil corporation, guns and money, glamour and intrique. Not only did journalists pile on, but they didn't want to let it go. There were many more clicks to be had by creating continuing versions of the "evil empire" narrative than by reporting on environmental mitigation or community development through the large scale collaborative efforts of nations, industry, and NGOs.

Bryan you always write well. You are always polite. Considered.
But this was your best ever prose.
Well said.
(AI assisted?)

 

[Texas Leaguer]

Thanks Garry. Not AI. Just a viewpoint for having watched the attacks on the natural diamond industry for decades now. As with all consipiracy theories there is always an element of truth for the conspiracists to work with and to create misdirection and misinformation. What gets left out of their narratives tends to be the most important.

 

[Garry H (Cut Nut)]

Thanks Garry. Not AI. Just a viewpoint for having watched the attacks on the natural diamond industry for decades now. As with all consipiracy theories there is always an element of truth for the conspiracists to work with and to create misdirection and misinformation. What gets left out of their narratives tends to be the most important.

Or what the left inclined journalist implies or suggests (or makes up)!

 

[Karl_K]

As a consumer who remembers the spring DeBeers price increases and the collusion across the entire industry to mirror the increase instantly, I will never have warm fuzzy thoughts of DeBeers.
On the other hand in entire industry in most ways has moved on from the worst of the abuses(been forced to by all the attention) and DeBeers has lost control of the market.

I could rant on the Rap pricing scheme for an hour or 2.
The other 800lb gorilla called GIA is down to 500lbs.
Its getting better.
Harping on the past is wrong, but keeping their feet to the fire that it is never repeated is a good thing.
Attempting to sweep the past under the rug is a very bad idea.

Bring on the sparky rocks!!!!!

 

[freddyboston]

maybe the next chapter in Natural Pricing will be Botswana goes rogue ~ cuts out the "middle men" - dramatically slashes natural retail prices / begins direct sales of Botswana Mined / Cut and Polished directly to consumers (or via Signet ??)

Botswana president Duma Boko "We will take the diamonds and see what we can do with them. They are ours. These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn't happen, we will die trying. By all means.

Botswana President: "De Beers is Not Doing its Job"

 

[Garry H (Cut Nut)]

maybe the next chapter in Natural Pricing will be Botswana goes rogue ~ cuts out the "middle men" - dramatically slashes natural retail prices / begins direct sales of Botswana Mined / Cut and Polished directly to consumers (or via Signet ??)

Botswana president Duma Boko "We will take the diamonds and see what we can do with them. They are ours. These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn't happen, we will die trying. By all means.

Botswana President: "De Beers is Not Doing its Job"

That would be like Saudi Arabia dropping the oil price (OPEC is a real "holding goods back from the market" conspiracy) and starting a price war.
Politicians often have little understanding of business and economics!

 

[freddyboston]

That would be like Saudi Arabia dropping the oil price (OPEC is a real "holding goods back from the market" conspiracy) and starting a price war.
Politicians often have little understanding of business and economics!

maybe they need a price war to find a retail price where people (ie 50%+ of US buying LGD e-rings start to look at naturals again...

question is how low can Botswana sell their own mined, cut and polished ? even if they were to only break even.... the in-country labor costs are still accretive to the national GPD....

 

[Garry H (Cut Nut)]

question is how low can Botswana sell their own mined, cut and polished ? even if they were to only break even.... the in-country labor costs are still accretive to the national GPD....

Sadly, when governments take over these operations, as has happened when Zimbabwe kicked out Rio Tinto and a local firm took over Lucara's mine in Lesotho, things tend to go very poorly from an operational point of view Freddy.
So Botswana without the mining experience of Anglo America (owner of De Beers) would probably go broke too.

 

[Garry H (Cut Nut)]

Here is another example of a controlled industry operating like a triopoly.
Fragrances:
Serious regulatory investigations into potential price-fixing and collusion are underway in a few countries.
The market's lack of transparency and the small number of dominant players have raised red flags for regulators.

 

[Texas Leaguer]

maybe the next chapter in Natural Pricing will be Botswana goes rogue ~ cuts out the "middle men" - dramatically slashes natural retail prices / begins direct sales of Botswana Mined / Cut and Polished directly to consumers (or via Signet ??)

Botswana president Duma Boko "We will take the diamonds and see what we can do with them. They are ours. These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn't happen, we will die trying. By all means.

Botswana President: "De Beers is Not Doing its Job"

This is not farfetched - it could happen. It would be a shock that the industry doesn't need right now, and it might not end well for Botswana. What the industry needs is a collective approach with each producing country supporting the industry as a whole. "A rising tide lifts all boats" so to speak.

 

[Garry H (Cut Nut)]

This is not farfetched -........What the industry needs is a collective approach with each producing country supporting the industry as a whole. "A rising tide lifts all boats" so to speak.

Russia would need to participate along with about a dozen struggling smaller companies.

 

[Texas Leaguer]

Russia would need to participate along with about a dozen struggling smaller companies.

Indeed. I hope the day comes soon when Russia's aggression stops and sanctions can be lifted. This has been one of the many significant challenges the natural diamond industry has faced in the 2020's.

 

[freddyboston]

It's incredible how little it costs to make / polish Chinese HPHT LGD's....
They actually had to instigate a min floor for rough...No wonder they can sell a 1ct polished for under $50

It takes the Earth more than a billion years to forge a diamond. Feng Canjun can grow one in the space of a week.

The prices have got so low in China that the government has intervened. In Henan, the provincial government is behind the formation of a new diamond association — a move that echoes a broader crackdown on destructive price wars in sectors such as electric vehicles. One of the association’s first moves in March was to set a minimum price of $15 per carat for rough diamonds weighing between one and 10 carats.

Once roughly processed, the stones are shipped to Surat, India — the world’s diamond polishing capital — where labour costs are lower. Feng estimates it costs Rmb400 ($56) to polish one carat in China, more than it costs him to produce the stone, compared with just Rmb86 in India. *86RMB = $11.98

https://archive.is/k9JD2#selection-2445.0-2445.281

 

[Garry H (Cut Nut)]

It's incredible how little it costs to make / polish Chinese HPHT LGD's....
They actually had to instigate a min floor for rough...No wonder they can sell a 1ct polished for under $50

..
.......... One of the association’s first moves in March was to set a minimum price of $15 per carat for rough SYNTHETIC diamonds weighing between one and 10 carats.

Once roughly processed, the stones are shipped to Surat, India — the world’s diamond polishing capital — where labour costs are lower. Feng estimates it costs Rmb400 ($56) to polish one carat in China, more than it costs him to produce the stone, compared with just Rmb86 in India. *86RMB = $11.98

https://archive.is/k9JD2#selection-2445.0-2445.281

I cheekily added one word Freddy.
But that is very interesting.
In general rounds under 1 carat of HPHT or CBD wholesale for quite a bit more per carat than two or three carat polished.

 

[Chelsea Palmer]

I am a layperson and know nothing about the business of diamonds, and I did scan this article, but why are the smaller diamonds retailing for more than the larger ones?

 

[Garry H (Cut Nut)]

I am a layperson and know nothing about the business of diamonds, and I did scan this article, but why are the smaller diamonds retailing for more than the larger ones?

I am sure the markups are higher on bigger stones because they always cost 4 times more for double the carat weight in natural diamonds.
So even though smaller stones cost less per carat at wholesale, what retailers can get away with has a more profound impact.