Business Wars

It’s 1869 and diamonds have been found in Cape Colony. Now, diamond hunters from across the world are heading to this remote British outpost in southern Africa, seeking a glittering fortune. And among them are two wide-eyed hopefuls: streetwise Barney Barnato, who hails from the London slums, and Cecil Rhodes, a vicar’s son with a head full of imperialist daydreams. When the diamond rush turns to bust, Barnato and Rhodes embark on a quest to conquer the mines. But only one man can win.

It’s 1914 and De Beers’s monopoly is under threat. Diamonds have been discovered on the desolate coast of the German colony of South West Africa. So it hired an ambitious diamond expert named Ernest Oppenheimer and gave him his orders: head to the beach and assess the threat. But then World War One disrupts De Beers chance to do a deal with the German diamond miners. Now, Oppenheimer sees his chance to scramble to the very top of the diamond industry.

It’s 1940, and the world is at war. The Allies and Axis powers are scrambling to lock down supplies of the industrial diamonds needed to mass produce their tanks, planes and submarines. But when the White House demands De Beers hands over a year’s supply of industrial diamonds, it soon learns the cartel is as hard to break as the diamonds it sells.

It’s the early 1950s and West Africa’s growing number of diamond smugglers is causing headaches for De Beers. Faced with millions of pounds in losses, the diamond monopoly decides it’s time to get tough with the smugglers. But while De Beers battles the illicit diamond traders, in the far east of the Soviet Union a new threat is brewing.

It’s 1966 and De Beers is about to abandon its eleven-year search for diamonds in Botswana. But the geologist behind the search is far from ready to pack up his tools. And De Beers isn’t the only one searching for gemstones. Soon, a major diamond find in Australia will leave the diamond monopoly facing a big dilemma: should it seek to control or to destroy this Antipodean threat?

It’s the late 1990s and rebel armies in Angola, Sierra Leone and Congo are bankrolling campaigns of mass murder and terror with diamonds. Now, after years of turning a blind eye, the diamond-buying public is starting to notice the bloodshed. But as the issue of so-called “blood diamonds” rises up the political agenda, De Beers is plotting what might be the boldest move yet in its long history: giving up its quest to control all the world’s diamonds.

It’s the 2000s and the diamond cartel is dead. Now, De Beers must adjust to its new status as the market leader rather than the monopoly. But the threats to its business aren’t going away. Diamonds are losing their luster with the young, and Zimbabwe’s undermining the industry’s response to conflict diamonds. And most threatening of all, a wave of new start ups are out to disrupt De Beers by growing man-made diamonds.

Today we conclude our Diamond Wars series. These precious stones are known to be undeniably beautiful, rare and a symbol of luxury. But diamonds have also been associated with war, human rights abuses and death. In response, consumers these days are demanding more transparency about where stones are sourced. Some are seeking out less expensive gemstone alternatives or lab-grown diamonds. And even powerhouse companies like De Beers have taken strides to adapt. To find out more about the future of the diamond industry we’ll hear from Paul Zimnisky, an independent global diamond industry analyst.