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The eventful history of De Beers diamond dealers

Diamonds travel an incredible journey from deep within the Earth’s crust to jewellery boxes worldwide. Similarly, the history of De Beers, the diamond giant, is filled with twists and strategic moves that shaped the diamond industry. The story of De Beers doesn’t begin 3.3 billion years ago, like the diamonds it mines, but it’s just as fascinating.

 

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What transformed De Beers from a failed cotton farm into a global diamond powerhouse?

The journey of De Beers began in 1870 when Cecil Rhodes moved to South Africa to work on his brother's cotton farm. After the farm failed, Rhodes seized opportunity in the diamond fields of Kimberley, strategically acquiring mining claims and establishing De Beers Consolidated Mines by 1888. Under his leadership, De Beers secured a 90% monopoly over global diamond production.

After Rhodes' death in 1902, the Oppenheimer family continued this dominance, introducing the Diamond Syndicate to regulate supply and stabilize prices. Their marketing genius shone in 1947 with the legendary "A Diamond is Forever" campaign, which transformed diamond engagement rings into a cultural tradition.

Though facing modern challenges from new diamond sources, De Beers' remarkable history shows how strategic vision and marketing brilliance built an empire that continues to shape the diamond industry today.

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What is De Beers?

De Beers, founded in 1888, is one of the world’s largest and most influential diamond companies. It has dominated the global diamond industry for over a century, shaping the way diamonds are mined, distributed, and marketed. Known for creating and controlling the supply of diamonds, De Beers is also famous for its marketing genius, having established the iconic concept that “a diamond is forever.” Today, while its monopoly has diminished, De Beers remains a major player in both natural diamonds and synthetic diamonds, continuing to influence the market and how consumers perceive diamonds.

The origins of De Beers

a young, 17-year-old Cecil Rhodes in a suit, who would later become one of the most influential figures in diamond history

The Birth of De Beers in 1870: Who is Cecil Rhodes?

The foundation of De Beers begins in 1870, with Cecil Rhodes, an English vicar's son with a heart and lung condition, moved to South Africa. His brother, Herbert, owned a cotton farm in Natal, a British colony, where Cecil started work. The land was unsuitable for cotton, however, and the venture failed. But The South African earth also contained diamonds.

The Discovery of South African Diamonds: the start of Diamond Fever

A few years before Rhodes’ arrival, 15-year-old Erasmus Jacobs discovered a diamond along the Orange River in Hopetown. This discovery ignited the first wave of "diamond fever," turning South Africa into a hotspot for fortune seekers.

Cecil Rhodes and the Rise of De Beers

a person holding a handful of rough natural diamonds, mined from The Kimberley diamond fields

The Rhodes Brothers' first Steps in the Diamond Industry

In 1871, the Rhodes brothers turned their attention to Kimberley’s diamond fields, initially renting and selling water pumps to miners. Cecil Rhodes quickly began buying land and diamond claims, laying the foundation for his future empire.

How Cecil Rhodes created a new business model

Rhodes recognized the advantage of consolidating diamond operations, leading to his systematic acquisition of mining claims. By 1888, he had formed De Beers Consolidated Mines, securing his place as the dominant force in the diamond trade.
the tomb where Cecil Rhodes was laid to rest atop the Matobo Hills in Zimbabwe, carved in solid granite

Cecil Rhodes' legacy and final resting place

After a life filled with ambition, controversy, and power, Cecil Rhodes was laid to rest in a serene spot atop the Matobo Hills in Zimbabwe. His tomb, carved into solid granite, overlooks the African plains that he once sought to control. Known as "World's View," this majestic burial site reflects both his imperial dreams and his enduring legacy. For many, it is a place that encapsulates the grandeur and complexity of a man whose influence forever changed the diamond industry.

The De Beers monopoly

The De Beers Diamond Monopoly and political influence

By 1890, De Beers controlled 90% of the world’s diamond production, a staggering diamond monopoly. Through political influence and strategic decisions — such as when Rhodes himself, as Prime Minister, secured a massive diamond for De Beers — Rhodes solidified De Beers’ supremacy.

The Oppenheimer Family and De Beers' continued dominance

After Rhodes' death in 1902, the Oppenheimer family took control of De Beers. Under their leadership, the company continued its monopoly, introducing the "Diamond Syndicate" to regulate diamond supply and ensure stable prices.

Marketing genius: The Diamond Engagement Ring

The Impact of De Beers on diamond pricing

De Beers had incredible control over diamond prices for decades. By controlling supply, they could keep prices high, ensuring that diamonds remained both rare and valuable in the eyes of consumers.
vintage advertisement featuring a woman holding a rose and pointing to a diamond, known for the famous ‘a diamond is forever’ campaign by De Beers

The iconic "A Diamond is Forever" campaign

In 1947, De Beers launched the famous “A Diamond is Forever” campaign, forever linking diamonds with eternal love and marriage proposals. This campaign is largely responsible for the modern tradition of diamond engagement rings.

The famous De Beers’ Centenary Diamond

Among De Beers’ most famous diamonds is the Centenary Diamond, one of the largest ever discovered. Weighing 599 carats in its rough state, it was unveiled during De Beers’ 100th anniversary in 1988 and is valued at over €70 million today.

Challenges and shifts in the diamond industry

Shifts in strategy: De Beers and modern diamond markets

In the 21st century, De Beers faced challenges from new diamond sources in Russia, Canada, and Botswana.

De Beers and synthetic diamonds

To keep up with modern trends, De Beers has entered the synthetic diamond market, catering to younger, price-conscious customers. This is a notable shift from its long-standing emphasis on the rarity of natural diamonds.

De Beers today

Today, De Beers remains a major player in the global diamond market, though it operates in a more competitive environment. The company continues to innovate in both natural and synthetic diamonds, particularly in emerging markets like China.

From its beginnings with Cecil Rhodes to its global dominance under the Oppenheimer family, De Beers has left an indelible mark on the diamond industry. Though its monopoly has ended, the legacy of De Beers lives on through its brand, its influence on diamond pricing, and its lasting role in popularising diamonds as symbols of love and luxury.

  • Fabienne Rauw

  • BAUNAT Antwerp

  • Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six  years of experience at BAUNAT she acquainted well with the product and the marketing around it. Her degree in PR ensures that BAUNAT is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six  years of experience at BAUNAT she acquainted well with the product and the marketing around it. Her degree in PR ensures that BAUNAT is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.