Diamonds: A Chronicle of Blood and Desire

The Diamond You Know Is Not Real

“A Diamond is Forever.”

You’ve probably heard this phrase. Is there a more perfect expression to vow eternal love while handing a ring to someone you cherish? But what if all of this was a grand illusion created by the greatest marketers of the 20th century? What if that sparkling carbon lump you believe to be a “symbol of eternal love” was never truly rare, and its value is the result of strict control and manipulation?

This article tells the rough yet fascinating journey of diamonds beyond the glittering showcases.

We will travel through time from ancient Indian kingdoms, through the secretive Jewish merchants’ alleys in Antwerp, Belgium, to dusty mines in South Africa and the heart of Wall Street’s massive capital. Along the way, we will confront the tragic scars left by ‘blood diamonds’ and the chilling legends whispered by cursed gems.

Are you ready? Let’s begin the true story of diamonds.

Chapter 1: Jewish Merchants Open the Diamond Market

The history of the diamond market as we know it is inseparable from the history of Jewish people.

For a long time, diamonds were mysterious stones mined only in the Golconda region of India. European royalty and nobility were captivated by these sparkling stones, but transporting diamonds from India to Europe was no easy feat. At this time, Jewish merchants scattered across Europe, forming tight-knit networks, emerged as key players on the ‘Diamond Road.’ In an era when owning land was difficult, they focused on small, valuable, and movable assets like gems. Particularly, the cutting and polishing techniques for rough diamonds were secret skills passed down within Jewish communities.

At the end of the 15th century, when Jews were expelled from Spain and Portugal, they migrated with their skills and networks to Antwerp in Belgium and Amsterdam in the Netherlands. These two cities quickly became the world’s diamond trading hubs. Jewish merchants sealed deals worth millions of dollars with a handshake accompanied by the Hebrew greeting ‘Mazal U’Bracha,’ meaning ‘luck and blessings.’ This phrase was a stronger symbol of trust than any contract. Their closed and tight-knit community formed the foundation of the diamond market’s unique distribution structure.

Chapter 2: The Birth of De Beers and the Dark Shadow of the Rothschilds

Until the mid-19th century, diamonds were still considered rare gems.

But everything changed in 1867 when a boy found a sparkling stone by the Orange River in South Africa. This stone, called the ‘Eureka Diamond,’ marked the beginning of a massive diamond rush. Soon after, a huge vein was discovered in the Kimberley region, attracting explorers and speculators worldwide.

The problem was that too many diamonds flooded the market.

As supply exploded, the value of diamonds, which was based on rarity, plummeted. The market fell into chaos.

At this moment, a man appeared on history’s stage: the ambitious young Briton, Cecil Rhodes. He saw a tremendous opportunity in the chaos: “If I buy up all the diamond mines and control supply, I can manipulate prices at will!”

But acquiring so many mines required enormous capital. Rhodes sought financiers in London and found a powerful backer: the Jewish Rothschild family, who dominated global finance at the time. With their massive funding, Rhodes bought out competitors’ mines and created the giant cartel known as ‘De Beers.’

Founded in 1888, De Beers controlled over 90% of the world’s diamond production. They established the Central Selling Organization (CSO) in London to rigorously control the quantity and price of all diamonds distributed worldwide. Diamonds were no longer expensive because they were rare; they were rare because De Beers made them so.

Chapter 3: The Marketing of the Century, “A Diamond is Forever”

De Beers succeeded in controlling supply but faced a bigger challenge: they had to create a reason for people to buy diamonds. Especially during the Great Depression of the 1930s, demand for luxury goods like diamonds plummeted.

The Oppenheimer family, leading De Beers, partnered with New York advertising agency N.W. Ayer to launch the most successful marketing campaign in history. Their strategy was simple: ‘Associate diamonds with love.’

*. Product placement in films: They gave Hollywood stars diamond rings and featured them in movies. Scenes where a man proposes with a diamond ring became a global romantic ideal.

*. Celebrity endorsements: The British royal family, famous actors, and socialites were constantly shown wearing diamonds in the media.

*. Price guidelines: They spread specific guidelines like “An engagement ring should cost two months’ salary,” subtly pressuring men.

Then, in 1947, copywriter Frances Gerety created the immortal slogan, “A Diamond is Forever.” This phrase perfectly linked the physical property of diamonds (the hardest substance) with the emotional value of eternal love. Thanks to this campaign, diamond rings, once exclusive to royalty and the elite, became a ‘must-have’ for the average middle class. They weren’t selling gems; they were selling the dream of ‘eternal love.’

Chapter 4: The Chilling Whispers of Cursed Diamonds

The history of diamonds is not only about wealth and love. Sometimes, it includes legends of ‘cursed diamonds’ that bring misfortune and death to their owners. These gems, as beautiful as they are, carry dark histories and bloody tales.

The Tragic Blue Star, the Hope Diamond

The most famous curse is undoubtedly linked to the ‘Hope Diamond.’ This 45.52-carat diamond, with a deep sapphire hue, is said to have been the eye of a Hindu deity statue in India. In the 17th century, French jeweler Tavernier stole it and sold it to Louis XIV, after which the terrible curse began.

Louis XVI and Marie Antoinette: The last French royal owners of this diamond were executed by guillotine during the French Revolution.

Henry Philip Hope: A London banker whose family went bankrupt after owning the diamond. The diamond’s name comes from him.

Evelyn Walsh McLean: A wealthy American heiress who scoffed at the curse and bought the Hope Diamond. Her son died in a car accident, her daughter from an overdose, her husband died in a mental hospital, and she herself met a lonely end.

Eventually, in 1958, jeweler Harry Winston donated the Hope Diamond to the Smithsonian Museum in the U.S., hoping it would bring luck to the American people. To this day, many visit the museum to see this beautiful yet eerie gem.

The King’s Downfall, the Koh-i-Noor

The ‘Koh-i-Noor’ diamond, meaning ‘Mountain of Light,’ is one of the oldest diamonds in the world. But it carries a terrifying legend: “Whoever owns this diamond will rule the world but suffer all misfortunes. Only gods or women can wear it without harm.”

Many kings of the Mughal Empire, Persia, and Afghanistan fought bloody wars to possess this diamond, most meeting tragic ends. Eventually, it fell into British hands in the mid-19th century and was presented to Queen Victoria. Conscious of the curse, the Koh-i-Noor has only been used in queens’ crowns and is now kept in the Tower of London.

The Deadly Black Temptation, the Black Orlov

Also called the ‘Eye of Brahma,’ the ‘Black Orlov’ diamond has an ominous black hue. Legend says it was stolen from the eye of a Brahma statue in an Indian Hindu temple, bringing a curse that caused its owners to commit suicide.

In 1932, jeweler J.W. Paris, who brought the diamond to the U.S., jumped from a New York skyscraper. Later, Russian owners Princess Nadia and Princess Leonila also died by mysterious suicides. To break the curse, the diamond was eventually cut into three pieces.

Scientifically, the curse cannot be proven, but the tragic histories of these owners reveal another dark face behind the diamond’s brilliance.

Chapter 5: The World Behind Closed Doors, New York Diamond Dealer Club

How are diamond prices determined? Unlike gold or oil, there is no international market price. Prices are still set by a few dealers in closed ‘diamond clubs (Bourses)’ around the world.

The most iconic is the Diamond Dealers Club (DDC) on 47th Street in Manhattan, New York. Jewish dealers remain central to trading here. Dressed in ultra-Orthodox Jewish attire, they spread diamonds from small paper bundles, inspect stones with loupes, and negotiate prices in Hebrew or Yiddish—scenes not much different from Antwerp centuries ago.

Transactions here are based on absolute trust. A handshake with the phrase ‘Mazal U’Bracha’ seals the deal. Anyone who breaks this trust is permanently expelled from the global diamond industry. This tight and closed distribution structure, along with De Beers’ cartel, is another secret behind the stable diamond prices.

Chapter 6: The Cold War Rift, Soviet Entry

An unexpected force cracked De Beers’ decades-long monopoly: the Soviet Union.

In the 1950s, massive diamond mines were discovered in the harsh Siberian tundra. As a communist state, the USSR had no reason to cooperate with De Beers, a symbol of Western capitalism.

If the Soviets flooded the market independently, De Beers’ carefully built price control system could collapse overnight. De Beers faced a dire crisis.

Eventually, De Beers secretly negotiated with the Soviets: “We will buy all your mined rough diamonds, so please never sell directly on the market.” The Soviets needed stable foreign currency income, and De Beers needed to maintain market control. Thus, the capitalist giant and the communist behemoth formed a secret alliance over diamonds. This secret pact lasted decades and was only revealed after the Soviet collapse.

However, after the USSR dissolved in 1991 and Russia emerged, the situation changed. Amid economic turmoil, Russia broke the De Beers contract and began selling diamonds independently. New sources from Australia and Canada emerged, reducing De Beers’ market share below 50% and ending its perfect monopoly.

Chapter 7: Sierra Leone’s Tears of Blood, Blood Diamonds

In the 1990s, the world confronted the horrific truth behind diamonds’ beauty: ‘Blood Diamonds’ or ‘Conflict Diamonds.’

In African countries like Sierra Leone, Angola, and Congo, rebel groups illegally seized diamond mines and sold diamonds to buy weapons, fueling brutal civil wars. Countless people were massacred, forced into labor, and had their wrists cut off. The symbol of eternal love was a price of death and suffering for many.

The issue gained global attention with the 2006 film Blood Diamond starring Leonardo DiCaprio. Consumers raised their voices for ethical consumption, putting the entire diamond industry in crisis.

Eventually, the UN and the diamond industry introduced the ‘Kimberley Process,’ a certification system issuing a ‘birth certificate’ proving diamonds are conflict-free. However, the Kimberley Process still faces criticism for loopholes, and ethical controversies around diamonds continue.

Chapter 8: The Rise of the Dragon and the Internet Revolution

Two major changes swept the diamond market in the 21st century.

First, the rise of China. For decades, the U.S. was the largest diamond consumer. But China’s explosive economic growth turned diamonds into a new icon of wealth and success for its emerging affluent class. The idea that “diamonds are Western” became outdated, and China quickly grew into a market rivaling the U.S.

Second, the advent of the internet. Online diamond retailers like Blue Nile directly challenged traditional distribution. Consumers no longer needed to buy diamonds at expensive jewelry stores under dazzling lights. They could compare grades and prices online and purchase diamonds at much lower prices. This was a revolution that cracked the centuries-old closed diamond distribution structure.

What Dreams Do Diamonds Now Hold?

So, how was it? Our journey through the history of diamonds has been quite tumultuous. From mysterious stones in India, through Jewish merchants’ hands, to the heart of the De Beers empire, secret Cold War deals, and Africa’s bloodstained tears, diamonds are now sold to Chinese brides and Silicon Valley programmers.

Today, diamonds are no longer confined to De Beers’ kingdom. Suppliers from Russia, Canada, and Australia compete, and the internet has increased price transparency. Laboratories even produce ‘lab-grown diamonds’ physically and chemically identical to natural ones at much lower prices.

Perhaps we live in an era where the great myth of ‘eternal love’ is fading. But one thing is certain: this small carbon lump will remain by our side as the brightest mirror reflecting the desires, technology, and capital flows of the times, just as it has for centuries.

Next time you see a diamond on someone’s finger or in a museum showcase, don’t just think it’s beautiful. Within that sparkling light lie countless tears, sweat, ambition, and cunning strategies of people you never knew. This is the true story of diamonds I wanted to share with you alone.