New Diamond Agreement Totally Ignored Open Market’s Retailers
2005:New Diamond Agreement Was Based On Price Fixing
The Diamond Club West Coast has written a letter to the European Union objecting to its possible approval of the new contract between De Beers and Alrosa.
“Since De Beers implemented its Supplier of Choice program, while continuing its ‘ad hoc’ purchases of rough diamonds from Alrosa, we have seen the price of diamonds rise for no apparent reason,” the letter said. “We have been told that the reason is a shortage of rough goods, which our independent intelligence proves false. The goods exist, but they are being priced out of the market. This supports the evidence that De Beers and Alrosa are colluding to fix prices.”
The letter asks the E.C. to reconsider the impact the agreement would have on the people who make their living on the open market.
“We believe that the proposed agreement is fatally flawed and would constitute collusive horizontal practices to fix prices and to monopolize the rough and polished diamond markets,” it says. “The agreement would benefit no one but a cartel determined to enrich itself at the expense of free trade and the welfare of the consuming public.”