50s: Starting with a storage ring

Chapter 564 The Diamond of Misfortune
"Monopoly is the only source of exorbitant profits"—this Jewish business principle influenced Ernst's business values ​​from a young age.

Now that he has De Beers, Ernst can finally begin to play his "monopoly game".

In order to further concentrate market share in the diamond market, Ernst went on a frenzy of acquiring land, mergers and acquisitions, and developing new mines, while wielding the big stick of low prices to wipe out small companies that produce rough diamonds.

Some small companies and established players attempted to sell the rough diamonds they mined through their own channels, but before they could succeed, they were met with Ernst's furious retaliation.

When he encounters diamond companies that he cannot acquire through extraordinary means, he will use his vast diamond resources to wage a fierce price war, forcing these companies to surrender.

Guided by this "wolf culture," De Beers grew rapidly, and within a little over a decade, it controlled 90% of the world's diamond mines, thus establishing a dominant position.

In 1934, Ernst founded the famous CSO system in London.

In practice, diamond companies from various countries send their rough diamonds to South Africa in accordance with contracts, where De Beers sorts, prices, and purchases them.

After De Beers controlled the global diamond mine supply, Ernst invented the "scanner system".

This means that only the top 125 jewelry cutting companies in the industry are allowed to purchase rough diamonds directly from De Beers; these companies are collectively known in the industry as the "De Beers 125".

Each year, CSO holds 10 "product viewing events".

At the viewing event, De Beers placed diamonds of varying quality and size into sealed plastic bags and allowed “De Beers 125” to choose blindly.

It's important to know that each bag of diamonds is priced at almost $800 million or more, and there is no possibility of returning or exchanging them if you are not satisfied after opening the box.

However, faced with such harsh and humiliating conditions, diamond companies had no choice but to accept them. Only by joining De Beers' system were they qualified to do diamond business.

Under Ernst's careful design, this monopoly system continued to operate until the 1990s, when its monopoly was broken by a large number of synthetic diamonds.

This is the most glorious time for De Beers. Although Ernst has passed away, the diamond empire he created is still operating smoothly and effectively under the leadership of his eldest son, Harry.

Now that De Beers has come knocking, it was exactly what Sun Zhiwei expected.

For such a business tycoon, Sun Zhiwei is currently too small; there is no possibility for him to directly confront him.

However, he's not made of clay; now it all depends on the terms De Beers offers.

If the conditions are right, joining De Beers' system is not out of the question. However, if De Beers tries to take advantage of its monopoly position and demand exorbitant prices, it is not to be trifled with.

Although he couldn't beat his opponent in business, it would be easy for him to replace several chairmen of De Beers.

In particular, the current chairman of De Beers is Ernst's eldest son, Harry.

Harry Oppenheimer inherited Ernst's diamond business empire and billions of dollars in assets.

The Oppenheimer family's wealth far exceeds that of Neil Keith Ludwig, the richest man in America according to the Forbes 400.

However, the Oppenheimer family was small, and they could not afford to suffer losses.

If Ernst Oppenheimer, as the founder of the family, still had the courage to burn his bridges in his time...

The Oppenheimer family, now burdened by wealth, would never dare to engage in bloodshed.

If Sun Zhiwei demonstrated the power to threaten his family, then negotiation became Harry's only option. After returning to Paris on September 25th, Sun Zhiwei did not linger but instead transferred directly to Washington.

When he was fighting with De Beers, Tong Jiajia was his weakness, and he needed to make her step aside.

It just so happens that she hasn't seen her children for several months, so letting her go back to China for a few months is a good idea.

Three days later, Tong Jiajia flew directly to Beijing with large bags and small packages.

After seeing her off at the airport, Sun Zhiwei met Julian Maxwell, the head of De Beers in New York, at the flagship store of Rose Jewelry in Tribeca that afternoon.

Julian looked at the 'Moon Angel' displayed on Sun Zhiwei's desk as a decoration, his eyes full of admiration.

"It is truly a rare treasure. If it were backed by a few poignant legends, it would be priceless."

From his words, Sun Zhiwei heard both an excellent marketing strategy for a gem-quality diamond and a deeply hidden threat.

"Like that 'Doom Diamond'?" He bluntly stated Julian's meaning.

The "Doom Diamond" he mentioned is actually called "Hope," a 45.52-carat deep blue diamond named for its rare color and the rumors of misfortune befalling several of its owners during its ownership process.

The original stone, weighing 112 carats, was discovered in India in 1642 by the French explorer Tavimir. After being cut, it was presented to King Louis XIV of France.

Louis XIV had it carved into a 69.03-carat diamond, but he only wore it once before dying of smallpox.

After Louis XV ascended the throne, fearing rumors of its curse, he never wore it, but on one occasion he lent the diamond to his mistress.

As a result, Louis XV's mistress was beheaded during the French Revolution.

Subsequently, the large blue diamond passed to King Louis XVI of France, whose queen often wore it. As a result, Louis XVI and his wife were both sent to the guillotine.

The diamond was subsequently stored in the French treasury, but was stolen in 1792 and has remained missing ever since.

Thirty-eight years later, a very similar but smaller 45.52-carat diamond appeared on the London jewelry market and was bought by banker Hope for £18000.

From then on, it was named Hope, after its owner's surname.

The curse of the renamed 'Diamond of Misfortune' did not disappear. The Hope family went bankrupt and was subsequently sold multiple times.

This series of events led to the widespread legend that the 'Doom Diamond' was "cursed".

In the 20th century, it was collected by Sultan Hamid II of Türkiye, the McLean family of the United States, and others.

As a result, Hamid II was deposed, and members of the McClane family died one after another. The misfortunes of these diamond holders made the 'Diamond of Doom' even more famous.

Ultimately, jeweler Harry Winston purchased it in 1958 and donated it to the Smithsonian Institution in New York, ending its private ownership and bringing an end to its misfortune.

The Hope Diamond's fame and soaring value are closely related to the legend of its "curse of doom".

Each of the world's most priceless and famous diamonds has its own story behind it.

(End of this chapter)