DeBeers, Diamonds, and Sights
The name DeBeers is synonymous with the word "diamonds" due largely in part by their successful marketing of the slogan "A diamond is forever." The DeBeers group is integral to the diamond industry as they have a near monopoly of diamond mines and production. Recently settling with the U.S. government over diamond-fixing prices by paying a 10 million dollar fine, DeBeers is now allowed to directly operate in the United States.
The diamond business is a lucrative one and DeBeers is the major supplier of goods worldwide. The majority of the world's diamonds passes through DeBeers' Central Selling Organization and their Diamond Trading Company organizes ten meetings per year when they sell their rough diamonds. These ten weeklong gatherings are called sights and the buyers are called sightholders. Becoming a sightholder is of great significance since it is by invitation only and is limited to certain companies. In this way, DeBeers is able to control the diamond market quantitatively and qualitatively. They can sell as little or as much as they want and they also decide whether to sell nicer diamonds or not.
Sightholders are usually diamond-cutting centers and once they purchase their parcels from the DTC; they shape and polish the diamond rough for commercial use. Diamond bourses then distribute these among various wholesale and retail companies for sale to the general public. These bourses are located in India, Belgium, Israel and New York, with the most significant located in Antwerp. More than half of the world's polished diamonds pass through Antwerp where roughly 1,500 organizations dealing in diamonds reside.