GEMS: The Rising Price of Ice

The Rising Price of Ice

As a girl's best friend, diamonds are becoming more dear. De Beers Consolidated Mines, which controls 80% of the diamond market, said last week it will raise prices for rough gemstones by 13.5%. All told, the company's average prices have risen 52% since 1982, bringing the price of a one-carat flawless diamond to more than $17,000.

The diamond cartel has been able to impose the price increases largely because of intense demand from Japan, where the strong yen has made imported gems a bargain and young couples have developed a newfound fondness for diamond engagement rings. While many diamonds have become...

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