![]() Today, De Beers holds about 45 percent of the world’s rough supplies. Actually, it d elivered only about 50 percent of the goods to the then-existing producers’ Syndicate. Though De Beers was a major player during the Great Depression, the company wasn’t totally in control. ![]() So is there really any relevance to today’s situation? Yes, far more than one would expect. In 1929, world production of diamonds totaled 7.4 million carats (of which 57 percent was of industrial qualities, unfit for jewelry) by 1933, it had gone down to 4.0 million carats (of which 83 percent was industrial). At the onset of the Great Depression, the bad situation deteriorated further. When the stock market crashed a few years earlier, in 1929, the world was already facing a severe overproduction of rough diamonds. ![]() In parallel to the present global financial meltdown, the current troubles in the diamond industry were not created but rather exacerbated by the banking crisis. Based on the ensuing debate, such consent would not have been given – the government had a different agenda. Apparently, this decision was made without prior South African Un ion government approval. It happened exactly 76 years ago: in 1932, when the world was enmeshed in the Great Depression, De Beers Chairman Ernest Oppenheimer made a unilateral decision to close all of the company’s diamond mines. ![]() The Great Depression of the 1930’s was when the industry faced its greatest crisis – and, measured by the results, it may have been turned into the industry’s greatest triumph. From a historical perspective, the diamond industry is still very young its history is measured in decades or, at best, a few hundred years. During the holiday season we tend to reflect on events that have taken place thousands of years ago a nd rediscover their relevancy for present times. ![]()
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