Forget about the predictions of South African industry analysts that the price of rough-cut diamonds could fall another 60%. What keeps De Beers executives up at night are the more than 500 million carats of gem diamonds in public hands (or on them and in safety-deposit and jewelry boses). That’s more than 50 times the number of gem diamonds produced by the diamond cartel in a year. “The moment a significant portion of the public begins selling diamonds from this prodigious inventory, the cartel would be unable to sustain the price of diamonds, or maintain the illusion that they are such a rare stone that their value is, as the ad slogan claims, ‘forever.’” International Herald Tribune Feb. 23, 2009
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Diamonds