Since the discovery of diamonds, the precious stone has always remained an object of luxury and great beauty and which requires numerous financial sacrifices to be acquired. Diamond prices have remained relatively stable over the past 100 years, while prices of other products have fluctuated widely (Hauser, 2002). Diamonds are a relatively rare commodity, which gives them a high value and, thanks to De Beer's advertising campaign, carried out over the last six decades, this appeal for this high value has been maintained. However, the high price of diamonds cannot be due solely to their rarity, as the discovery of new deposits in recent decades has led to an increase in the number of diamonds available and, as they are no longer as rare as they once were, the high price of diamonds cannot be solely due to their rarity. prices should have fallen. This essay argues that the price of diamonds is too high because, although the quantity of diamonds available has increased over time, prices have remained relatively stable. The essay will show that there are powerful entities that influence the price of diamonds in such a way that current and recent prices have been much higher than what they were and are supposed to be. The essay will achieve its objectives by describing the role of the diamond cartel in influencing the price of diamonds and will seek to highlight the powerful entities controlling the cartel and explain how the cartel was able to set and maintain prices students. years, De Beers has dominated the diamond industry. Established in April 1880 by Cecil John Rhodes and his partner Charles Dunell Rudd, De Beers gained notoriety by merging with Barney Barnato's Kimberley Central Mining company and acquiring more and more mines (Hauser, 2002). The ...... middle of paper ......ine]Available at: http://www.investopedia.com/terms/c/cartel.asp[Accessed April 9, 2014].Goldschein, E. , 2011. Business Insider: The incredible story of how De Beers created and lost the most powerful monopoly of all time. [Online]Available at: http://www.businessinsider.com/history-of-de-beers-2011-12?op=1[Accessed April 9, 2014].Hauser, E., 2002. "The Diamond Cartel: Monopolizing an industry." The story behind the headlines: the origins of conflict around the world. Ed. Sonia G. Benson, Nancy Matuszak and Meghan Appel O'Meara. Flight. 3. Detroit: Gale, pp. 61-72. Spar, DL, 2006. Markets: continuity and change in the international diamond market. The Journal of Economic Perspectives, Vol. 20, no. 3 (summer 2006), pp. 195-208.Vogelsang, I., 2005. The international diamond cartel. [Online]Available at: http://are.berkeley.edu/~sberto/debers.pdf[Accessed April 9 2014].