De Beers vs OPEC
Exhaustible resources
- Compare to Picasso, Nintendo
- 1,000s of kimberlite pipes, only 50 economic to mine
Production is about as concentrated
- De Beers 44% in 82; 25% in 96; Botswana deal
Diamonds can be stockpiled in London
- Oil only in the ground, political risk
Intrinsic value for Oil
- Different grades, 3,000 of them
Oil is consumed, diamonds are durable