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April 18, 2024

Diamonds are not a girl's best friend - What are the real costs in diamond sales?

By Audrey Henderson | November 8, 2001

Diamonds are called a girl's best friend. The myth is that women can be whisked off their feet with a gift of diamond jewelry, for after all "A Diamond is Forever." Yet, few people associate diamonds with the horror that they cause in regions around the world. The murder, rape and mutilation of thousands of civilians in Sierra Leone for the sole purpose of taking over diamond territory seems too far away for Americans to care. Yet the problem of "conflict diamonds" hit home on Sept. 11. On Friday, The Washington Post reported that the Al Qaeda terrorist network may be financing their operations through the sale of diamonds purchased from war-torn Sierra Leone. Now, with the idea that Osama bin Laden may be profiting every time we buy diamond jewelry, the issue of "conflict diamonds" is suddenly much more significant.

The truth is that diamonds have long been a source of conflict in Africa and Eastern Europe. What exactly is a "conflict diamond?" The United Nations defines it as "diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments."

Nowhere have "conflict diamonds" played a larger role in terrorism than in the small west African country of Sierra Leone, which has been engulfed in a decade long civil war largely fueled by these precious gems. The rebel Revolutionary United Front (RUF) has terrorized the countryside of Sierra Leone, driving populations out of cities and areas that are rich in diamond resources. In order to fund their campaign of terror, the RUF has sold diamonds at below-market prices to brokers willing to pay cash or trade arms. The diamonds are then taken by the brokers and sold on the international market at significantly marked-up prices. The RUF manages to get enough money and arms out of the deal to fuel their continuing war and the brokers make a hefty profit on the sale of the diamonds to international diamond dealers and jewelry companies. At the end of the chain, creating the demand for these "conflict diamonds," are you and me.

Complicating the situation even further is the near impossibility of tracing the origins of diamonds. They are not marked or stamped, and certificates of origin are easily forged. Despite rumblings in Congress about banning "conflict diamonds" from sale in the United States, little to no effort has been made to ensure that these bloody gems do not make their way into stores. The profits from diamonds are too great for store owners and jewelry companies to regulate themselves. Retailers rarely ask dealers where diamonds are from, and inquiries are often met with the standard answer that the gems are not "conflict diamonds."

In anticipation of public concern over the issue of "conflict diamonds," industry leaders Tiffany & Co. and De Beers employed public affairs firms several years ago to monitor the media coverage of "conflict diamonds" in the United States. They say that they are taking every possible precaution to ensure that "conflict diamonds" are not sold in their stores.

However, knowing what we do about this precious gem, there is no way of knowing whether our purchases are supporting a legitimate business or terrorist groups such as Al Qaeda and the RUF. The only way to ensure that we are not financing a war against ourselves is to stop buying diamonds until demand for the gem is so low that Al Qaeda and the Revolutionary United Front can no longer use diamonds to fuel their wars of terror.


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