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Buying Diamonds In Botswana

The discovery of the diamond has not been a blessing for all the parts of Africa. In recent history, the demise on a regular basis was accompanied by the exploitation of workers, environmental destruction, government corruption and waste of incomes. As a result of these practices, conflict diamonds were used in various African countries to afford civil wars. To buy diamond in favor of rebel groups, however, was often unconsciously caused by false certification.

buying diamonds in botswana

A year after Botswana was once again declared independent (in 1966), the first diamonds were discovered. It took however a long time until men realized how valuable the ground in Botswana truly was. Buying and selling diamonds was a nonexistent industry in Botswana. Jefferis emphasizes that "infrastructure work was necessary as nothing was done structurally during the colonial period".

If you have questions about buying diamonds from Botswana or other specific countries, you can always ask objective advice and assistance from the experts of BNT Diamonds. Always the best investment and to your wishes.

"Most of the sight holders come from areas that have a high risk of the virus, which actually means they cannot travel to Botswana to come and buy diamonds," Letshwiti said. "For the local diamond industry, if this thing persists, it is going to affect the manufacturing sector. There is a likelihood that most factories will be operating at half capacity if the virus persist(s)."

The diamond industry already was facing poor sales in the Chinese market amid the coronavirus outbreak. De Beers Group Chief Executive Officer Bruce Cleaver said in a statement that sales were projected to drop by nearly 40% from January to February. Gaborone-based economist Keith Jefferis said the virus is hurting demand. "Because of the COVID-19 outbreak, people are not shopping as much as they would have," he said. "I think we will see that the demand for diamond jewelry will be weaker over the next few months. People are not shopping as much, some weddings will be postponed, and that will ultimately affect the demand for rough diamonds." Botswana is the biggest diamond producer in Africa and the second biggest in the world after Russia, making up more than 80% of the country's foreign earnings.

The company was founded in 1888 by British businessman Cecil Rhodes, who was financed by the South African diamond magnate Alfred Beit and the London-based N M Rothschild & Sons bank.[4][5] In 1926, Ernest Oppenheimer, a German immigrant to Britain and later South Africa who had earlier founded mining company Anglo American with American financier J. P. Morgan,[6] was elected to the board of De Beers.[7] He built and consolidated the company's global monopoly over the diamond industry until his death in 1957. During this time, he was involved in a number of controversies, including price fixing and trust behaviour, and was accused of not releasing industrial diamonds for the U.S. war effort during World War II.[8][9]

In 2011, Anglo American took control of De Beers after buying the Oppenheimers' family stake of 40% for US$5.1 billion (3.2 billion) and increasing its stake to 85%, ending the 80-year Oppenheimer control of the company.[10]

In 1898, diamonds were discovered on farms near Pretoria, Transvaal. One led to the discovery of the Premier Mine. The Premier Mine was registered in 1902 and the Cullinan Diamond, the largest rough diamond ever discovered, was found there in 1905.[25] (The Premier Mine was renamed the Cullinan Mine in 2003). However, its owner refused to join the[26] De Beers cartel.[27] Instead, the mine started selling to a pair of independent dealers named Bernard and Ernest Oppenheimer, thereby weakening the De Beers stronghold.[28] Francis Oats, who became Chairman of De Beers in 1908, was dismissive of the threats from the Premier Mine and the finds in German South West Africa.[29]However, production soon equalled all of the De Beers mines combined. Ernest Oppenheimer was appointed the local agent for the powerful London Syndicate, rising to the position of mayor of Kimberley within 10 years. He understood the core principle that underpinned De Beers's success, stating in 1910 that "common sense tells us that the only way to increase the value of diamonds is to make them scarce, that is to reduce production".[27]

During World War I, the Premier mine was finally absorbed into De Beers. When Rhodes died in 1902, De Beers controlled 90% of the world's diamond production. Ernest Oppenheimer took over the chairmanship of the company in 1929,[30] after buying shares and being appointed to the board in 1926.[28][31][7] Oppenheimer was very concerned about the discovery of diamonds in 1908 in German South West Africa, fearing that the increased supply would swamp the market and force prices down.[8][9] Former CIA chief Admiral Stansfield Turner claimed that De Beers restricted US access to industrial diamonds needed for the country's war effort during World War II.[32]

During the 20th century, De Beers used several methods to leverage its dominant position to influence the international diamond market.[16][41] First, it attempted to convince independent producers to join its single channel monopoly. When that did not work, it flooded the market with diamonds similar to those of producers who refused to join in, depressing their price and undermining return for the resistant. It also purchased and stockpiled diamonds produced by other manufacturers as well as surplus diamonds in order to control prices by limiting supply.[42] Finally, it bought diamonds when prices fell considerably naturally, to constrict supply and drive their value back up, such as during the Great Depression.[43]

In 2000, the De Beers business model changed[42] because of factors such as the decision by producers in Canada and Australia to distribute diamonds outside the De Beers channel,[16][41] as well as increasingly negative publicity surrounding blood diamonds, which forced De Beers to protect its image by limiting sales to its own mined products.[44]

The combination of a more fragmented and thus more competitive diamond market, increased transparency, and greater liquidity,[45] caused De Beers's market share of rough diamonds to fall from as high as 90% in the 1980s to 29.5% in 2019.[46][third-party source needed]

De Beers ran television advertisements featuring silhouettes of people wearing diamonds, set to the music of 'Palladio' by Karl Jenkins. The campaign, titled "Shadows and Lights" first ran in the first quarter of 1993. The song would later inspire a compilation album, Diamond Music, released in 1996, which features the 'Palladio' suite. A 2010 commercial for Verizon Wireless parodied the De Beers spots.[53]

In May 2018, De Beers introduced a new brand called "Lightbox" that are made with synthetic diamonds. The synthetic stones start at $200 for a quarter carat to $800 for full carat diamond. The new lab-grown diamond retail for about one-tenth the cost of naturally occurring diamonds. The new brand began selling in September 2018 and are produced in Gresham, Oregon, a $94 million facility using the region's cheap electricity, which opened in 2018 with the capacity for 500,000 rough carats of diamonds per year.[54][55][56]

The International Institute of Diamond Grading & Research (IIDGR) was set up by De Beers in 2008, with the aim of providing a range of services and equipment in the field of diamond verification. It is based in London, Antwerp and, from 2015, in Surat, India. The IIDGR works only on diamonds that meet the requirements of the United Nations' World Diamond Council Kimberley Process.[citation needed]

In 1999, a campaign by Global Witness to highlight the role of diamonds in international conflicts led to a review by the United Nations. The initial focus of the UN's investigation was on Jonas Savimbi's UNITA movement in Angola, which was found to have bartered uncut diamonds for weaponry despite international economic and diplomatic sanctions being in effect through United Nations Security Council Resolution 1173.[78][79]

In December 2000, following the recommendations of the Fowler Report, the UN adopted the landmark General Assembly Resolution A/RES/55/56[83] supporting the creation of an international certification scheme for rough diamonds. By November 2002, negotiations between governments, the international diamond industry, led by De Beers, and civil society organisations resulted in the creation of the Kimberley Process Certification Scheme (KPCS), which sets out the requirements for controlling rough diamond production and trade and became effective in 2003.[citation needed]

De Beers states that 100% of the diamonds it now sells are conflict-free and that all De Beers diamonds are purchased in compliance with national law, the Kimberley Process Certification Scheme[84] and its own Diamond Best Practice Principles.[85] The Kimberley process has helped restore the reputation of the industry, as well as eliminating sources of excess supply.[86]

In 2018, De Beers used blockchain technology to successfully track 100 high-value diamonds.[87] The diamonds were tracked through the manufacturing process from the mine to the retailer in order to ensure their quality and conflict-free status.[88]

In 2019, they launched their own end-to-end traceability platform called Tracr to enable all diamonds to be identified and traced as they move from the mine to the store. Signet and the Russian-based Alrosa are using the technology.[89]

The International Institute of Diamond Valuation (IIDV) was launched by De Beers Group in March 2016. Operating in partnership with diamond jewellery retailers, it provided a reselling service for all diamonds, regardless of value.[96][97][98] In April 2019, De Beers closed its IIDV division.[citation needed]

During World War II, Ernest Oppenheimer attempted to negotiate a way around the Sherman Antitrust Act by proposing that De Beers register a US branch of the Diamond Syndicate Incorporated. In this way, his company could provide the US with the industrial diamonds it desperately sought for the war effort in return for immunity from prosecution after the war; however his proposal was rejected by the US Justice Department when it was discovered that De Beers had no intention of stockpiling any industrial diamonds in the US.[32] In 1945, the Justice Department finally filed an antitrust case against De Beers, but the case was dismissed as the company had no presence on US soil.[99] 041b061a72


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