Military Engagements to Engagement Rings The Path of Conflict Diamonds

Where Are Diamonds Found? Rough diamonds are found by mining below the earth’s surface or river beds and streams through “alluvial” mining. Most of the diamond deposits currently mined in places such as Sierra Leone and Angola are alluvial, requiring only a shovel, a pan, and hard labor.

Illusion of Scarcity

Illusion of Scarcity Prices depend on the perception of scarcity. If diamonds are perceived to be rare, prices will remain high. If new diamonds flood the market, prices will drop or plummet. In the 1870s, large diamond deposits were discovered in Africa, allowing unprecedented numbers of diamonds to enter the open market. Diamond investors formed De Beers Consolidated Mines, Ltd. to control diamond production, perpetuating the illusion of scarcity.

Illusion of Scarcity Prices depend on the perception of scarcity. If diamonds are perceived to be rare, prices will remain high. If new diamonds flood the market, prices will drop or plummet. In the 1870s, large diamond deposits were discovered in Africa, allowing unprecedented numbers of diamonds to enter the open market.

Exploitable Resource In areas such as Sierra Leone alluvial mining allows easy access to quality rough diamonds. The artificially high price has encouraged rebels to take control of mining areas to make quick and substantial profits. Rebel groups such as the Revolutionary United Front (RUF) force civilians to mine for diamonds.

Diamonds Fund and Fuel Conflicts Rebel groups such use their diamond profits, upwards of $300 million a year, to buy weapons and supplies to sustain their military and mining endeavors. In the past decade, over 6 million people from Sierra Leone, Angola, Liberia, and the Democratic Republic of the Congo have become refugees after being forced from their homes by diamond fueled conflict. Millions more have died in diamond related conflicts over the past decade. Experts estimate conflict diamonds account for more than 4,000,000 deaths.

Abuses of Human Rights Cruelty includes the abduction and training of child soldiers, amputations, abductions of male mine workers, and the use of rape as a tool of war. Diamond profits allow for prolonged conflicts and the ongoing abuses of human rights in conflict areas. Despite UN efforts and attempts at diamond certification, the illegal sale of diamonds remains a profitable and dangerous business.

“A Diamond is Forever” Diamond engagement rings were not common until 1947, when De Beers launched its famous “A Diamond Is Forever” marketing campaign. The advertising campaign: Diamonds are rare Diamonds can never be parted with A man is expected to spend at least one month’s salary on a diamond engagement ring Diamonds are the only way to express true love

“A Diamond is Forever” De Beers has encouraged jewelers to loan diamonds to celebrities for prestigious events, solidifying a diamond’s association with wealth, prestige, and celebrity. De Beers controls more than half the world’s diamonds today at 60%. The United States is the largest market for diamond jewelry, buying nearly half of the $56 billion in diamonds sold last year.

The Conflict Diamond Forced labor pulls diamond out of mine or river Rebel groups take diamond from labor Rebels sell the diamonds to smugglers or trade them for guns from warlords Smugglers or warlords say the diamonds are not conflict diamonds and sell them on the open market Consumers, mostly Americans buy the diamonds not knowing their money is going towards murders and kidnappers

Conflict Free Diamonds? Because diamonds are small and easy to transport, it is difficult to track all diamonds leaving a given country. Diamonds from conflict regions are often mixed with legitimate diamonds and certified as conflict free. Many diamond experts claim they can examine a diamond and identify its origin, down to the very mine from which it came. Other industry experts claim that smuggling and mixing diamonds from different origins makes it nearly impossible to know if a diamond came from a conflict area.

The Kimberley Process In 2003, the Kimberley Process Certification, an initiative developed by governments, the diamond industry, and civil society was introduced to help reduce the flow of conflict diamonds. The Kimberley Process is a voluntary initiative that requires participants to certify shipments of rough diamonds are conflict free. The diamond industry also voluntarily agreed to implement a System of Warranties, designed to help trace rough diamonds from mining to point of sale.

The Kimberly Process While the Kimberley Process has not solved the problem of conflict diamonds, it has reduced the amount of conflict diamonds sold into the open market. Currently, violence funded by conflict diamonds is escalating in the Ivory Coast, proving there are serious loopholes in the Kimberley Process. Recommendations to strengthen the Kimberley Process include increasing government oversight of the diamond industry and strengthening government enforcement policies.