Explain how the diamond market is run. The diamond monopoly the DeBeers monopoly, the cartel out of South Africa, produced a lot diamonds but most of them were kept off the market. When there are fewer diamonds to sell, their value goes up. And then, in this way, they can control the market. There s competition.
Monopolies don t like competition.
That s a simple rule of economics. So when you have one supplier diamonds are a girl s best friend. That was one of the most successful advertising campaigns of all time. And they created a sense of value over a piece of rock a piece of stone that had no value unless you thought it had value. People did think it had value because advertising told them it had value.