De Beers has a superb history of managing the diamond business and the public perception of diamonds. No one will ever do it better. The two parts of its business - mining and marketing - have over long years evolved into the distinct positions they now hold, neither of which give the company very much breathing room. While that might sound drastic - and we are not looking at any imminent change - the outlook for the status quo is not promising. On the mining side, we have all been aware for a while that no mining company is excited about the future. BHP sold out; Rio Tinto tried, but could not find a buyer who would take on their huge investment in going underground at the Argyle mine. Never mind that mining companies want no part of the bad publicity involved in operating in some countries. And where is De Beers? They continue to be a dominant supplier, and that will not change soon. But, just before the Oppenheimers sold out, they signed a new 10-year agreement with the
Observations on trends and events in the gem and fine jewelry business.