A Russian diamond official was quoted as saying “We have to tell people that diamonds are valuable. We are trying to maintain the price, just as De Beers did, as all diamond producing countries do. But what we are doing is selling an illusion.” This relates to the fact that before the world economic recession, diamond prices were maintained by the De Beers diamond company by controlling and stockpiling diamonds, and maintaining the illusion of scarcity for this luxury item which has no usefulness or intrinsic value. As De Beers and other major diamond corporations buckle under the pressure of economic recession, Russia has placed itself in a position to control diamond pricing worldwide.

In the past, the De Beers Corporation controlled diamond pricing by maintaining strict, and often ethically questionable, control of a great percentage of the diamonds mined worldwide. By keeping control of accessible diamonds, and using clever and nuanced advertisement campaigns aimed at nostalgia and romance, De Beers managed to keep the number of diamonds available worldwide at a level that could convince consumers of their rarity while publicizing their supposed desirability. Over the years, Russia has stockpiled the largest quantity of rough diamonds, and maintained an agreement with De Beers that allowed them to buy a large percentage of their diamonds from Russia at a discounted price. Russia, in turn, did not undermine the De Beers system of keeping diamonds at an inflated price level.

Russia has been careful regarding its own future in the diamond industry, however, by withholding some diamonds in preparation for when demand will again escalate as economies become stronger. Russia is preparing itself to take the place of De Beers as far as power and profitability in the diamond market. Those in control of Russia’s diamond industry have been quick to point out that it is those consumers who are willing to spend larger quantities of cash which motivate their development of diamond selling viability, and that they have been willing to be patient and uphold policies set in place worldwide to keep diamond pricing high in order to turn a serious profit in the future.

These days those in control of the Russian diamond industry are attempting to bring investors by offering the opportunity to profit from a recovery in the worldwide market for diamonds. This works with the ambitions of all diamond corporations worldwide hoping to keep the carat worth of diamonds climbing out of its recent dip in price, but it is Russia that stands to benefit the greatest from such a market recovery. Meanwhile thousands of carats of diamonds pour onto sorting tables in Russia as its stockpiles of rough diamonds are carefully sorted through. It may be years before these diamonds are cut, polished, and set into engagement rings for brides-to-be, but until then Russia is doing its best to prepare the market.