Mining and Marketing Diamonds

Nikolozi Davlianidze, Verrazzano Class of 2022, completed major in International Business 

 

During my research about diamonds and the diamond industry, I discovered negative and positive factors which have influenced societies and economies in the past few hundred years. The diamond industry has been one of the most mysterious business segments, and it is a fascinating marketing example.

Diamond is composed of carbon, and the bonding of the atoms makes it the hardest single element. They are formed under pressure many miles below the earth's mantle and are ejected to the earth’s surface through vertical structures called kimberlite pipes in the oldest parts of the world. Explorers and scientists discovered these kimberlite mines in India, Brazil, Australia, Canada, South Africa, and Russia.

Diamonds created a specific market for the royal elite who were interested in owning a jewel for the aesthetics of their presentation. For example, Queen Elizabeth of England has a 530-carat diamond mounted on her crown. This diamond is the largest pear-shaped stone, and is known as the Great Star of Africa.

Mining diamonds is a controversial issue due to forced labor and human rights, which has happening for decades. According to experts, governments have used conflict diamond trade money to finance wars. In 2002, approximately thirty-seven countries adopted a diamond trade transparency process, also known as the Kimberley Process (KB) which reduces the flow of conflict diamonds.  

Diamond processing companies create opportunities for the local communities, which increases their living standards in developing countries. For example, a story I was told of a diamond polisher who works for Tiffany & Co is very touching because it allows to her earn a wage to take care of her family in Cambodia.

Today, many people can afford to own and wear some diamonds in their jewelry.