You can blame the global recession for the world’s largest diamond stockpile. Russia has topped De Beers as the world’s largest diamond producer this year with its refusal to go along with the European Union’s Antitrust Agreement.
De Beers is prohibited under its European Union antitrust agreement from stockpiling diamonds, and with rough diamond prices falling as much as 75% since last July, Russian owned Alrosa diamond company is situated to control the global diamond market.
De Beers withdrew from purchasing diamonds on the open market in 1999, and ceased purchasing diamonds mined by Russian company Alrosa, at the end of 2008.
Diabolical Diamonds
Russia's Recession Driven Diamond Stash
Trend Themes
1. Recession-driven Diamond Stockpile - Opportunity for diamond industry players to capitalize on the current diamond market disruptions caused by the global recession and the rise of Russia's Alrosa diamond company as the world's largest diamond producer.
2. Antitrust Agreement Bypass - Opportunity for innovative diamond companies to find creative ways to bypass antitrust agreements and regulations in the diamond market to gain competitive advantage in the industry.
3. Market Control - Opportunity for diamond industry players to seek control of the global diamond market through strategic investments and acquisitions in key diamond-producing regions and companies.
Industry Implications
1. Diamond Mining - The diamond mining sector will experience significant changes as Russia's Alrosa diamond company rises to become the world's largest producer and changes the dynamics of the diamond market.
2. Diamond Trading - The diamond trading industry will face challenges as Russia's Alrosa diamond company consolidates its position as the leader in diamond production, and traditional diamond trading companies like De Beers struggle to compete.
3. Antitrust Regulation - The antitrust regulation industry will be under pressure to adapt to the changing dynamics of the diamond market and find new ways to regulate the industry to ensure fair competition and prevent monopolies.