How the diamond engagement ring was invented and sold around the world

"The story of the diamond industry is one of monopolies, marketing and monthly salaries. For decades, men in many countries were expected to spend two or even three months' salary on a diamond engagement ring. This notion and the iconic status of this gem did not come about by accident. The story goes back to 1870, when an Oxford University dropout named Cecil Rhodes set off to try his luck in the Cape Colony modern-day South Africa, then a key British domain."

"Then, over the next 20 years, Rhodes and his partner Charles Rudd proceeded to buy out hundreds, and then thousands, of small mines and claims landholdings believed to contain diamonds often for a pittance when their owners faced bankruptcy. Most miners were small operators, and Rhodes and Rudd had access to serious financial capital notably the Rothschild banking empire through their connections in London. As the two partners combined claims into larger mining units, overhead costs were reduced, and operations became more profitable."

"De Beers was founded upon the racist policies of South Africa, which at the time was ruled by a white minority. The diamonds were extracted by Black miners earning subsistence wages, while De Beers's white, European-origin shareholders enjoyed the profits."

Cecil Rhodes, an Oxford dropout, went to the Cape Colony in 1870 and rented water pumps to diamond prospectors to prevent flooding. Over twenty years Rhodes and Charles Rudd bought hundreds then thousands of small mines and claims, often acquiring them cheaply from bankrupt owners. They accessed major capital, notably the Rothschild banking empire, consolidated claims to reduce overhead, increased profitability, and incorporated as De Beers Consolidated Mines. By 1888 De Beers held a near-monopoly of South African claims; by 1900 diamonds comprised over a quarter of South African exports and De Beers controlled about 90 percent of global supply. De Beers operated under racist South African policies, extracting diamonds with Black miners paid subsistence wages while white shareholders reaped the profits. Rhodes served as Cape Colony prime minister from 1890 to 1896 and died in 1902.

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