Is Botswana getting a raw deal? Perhaps the better question is:
Furthermore, De Beers’ famous marketing campaign—"A Diamond is Forever"—primarily benefits the retailer and the cutter. Botswana argues it is time for the miner to be paid like a partner, not a serf. De Beers counters that the relationship is already the fairest in the industry. They argue that without their marketing genius and global distribution network, Botswana’s diamonds would be worthless commodities.
When a diamond is pulled from the Kalahari desert, it is worth $X. After it is cut in Surat (India) and set in a ring in New York, it is worth $10X. Botswana currently captures very little of that $10X. They provide the raw material but don't own the brand.
Follow The World News for updates on the De Beers negotiations and global commodities.
Is Botswana getting a raw deal? Perhaps the better question is:
Furthermore, De Beers’ famous marketing campaign—"A Diamond is Forever"—primarily benefits the retailer and the cutter. Botswana argues it is time for the miner to be paid like a partner, not a serf. De Beers counters that the relationship is already the fairest in the industry. They argue that without their marketing genius and global distribution network, Botswana’s diamonds would be worthless commodities.
When a diamond is pulled from the Kalahari desert, it is worth $X. After it is cut in Surat (India) and set in a ring in New York, it is worth $10X. Botswana currently captures very little of that $10X. They provide the raw material but don't own the brand.
Follow The World News for updates on the De Beers negotiations and global commodities.
