The inside story of how De Beers manipulated diamond prices

The inside story of how De Beers manipulated diamond prices

The Diamond Scam: A Tale of Deception and Greed


In the heart of the bustling diamond district, a story of deception and greed unfolded that would leave an indelible mark on the industry. This tale involves a group of shrewd Jewish capitalists, renowned for their expertise and integrity in the diamond trade, and a cunning scam artist who sought to exploit their trust and reputation.

Setting the Scene

The diamond district was a hub of activity, where traders and jewelers from all walks of life converged to buy, sell, and appraise precious gems. Among them was a group of Jewish capitalists who had built their legacy on trust, quality, and keen business acumen. Their reputation was impeccable, their deals fair, and their knowledge of diamonds unparalleled.

 The Arrival of the Scam Artist

Into this world of trust and tradition walked a man named Viktor Smirnov. Charismatic and persuasive, Viktor claimed to be a diamond dealer from Russia with access to a rare collection of flawless diamonds. He presented himself as a man of means, with connections to the highest echelons of the diamond trade.

The Perfect Con

Viktor's approach was meticulous. He began by ingratiating himself with the Jewish capitalists, attending community events and building personal relationships. His knowledge of the diamond industry was impressive, and he often engaged in deep discussions about gemology, earning the respect of his


After several months, Viktor unveiled his plan. He claimed to have access to a large cache of flawless diamonds, acquired from a defunct Russian mine. The stones were, he said, of unmatched quality, and he was offering them at a fraction of their market value. The deal was almost too good to be true.

The Trap is Set

To gain the trust of the capitalists, Viktor presented a few samples of the diamonds. These samples were indeed flawless, stunning everyone who saw them. Satisfied with their authenticity, the capitalists agreed to a trial purchase, receiving a small batch of diamonds for a significant sum of money.
Encouraged by the success of the initial transaction and eager to capitalize on the deal of a lifetime, the capitalists pooled their resources for a larger purchase. Viktor's offer was irresistible, and the potential profits were enormous. The capitalists envisioned a new era of prosperity for their businesses.

The Sting

The large shipment of diamonds arrived, and the capitalists eagerly began their assessments. To their horror, they discovered that the bulk of the stones were not diamonds at all but expertly crafted cubic zirconia and moissanite. The flawless samples Viktor had initially provided were genuine, but the main shipment was


Realizing they had been duped, the capitalists scrambled to find Viktor, but he had vanished without a trace, taking with him a small fortune and leaving behind a shattered community. The scam had not only cost them financially but had also damaged their reputations and trust within the diamond district.

The Aftermath

The fallout from Viktor's scam was severe. The Jewish capitalists, known for their integrity, were now seen with suspicion. It took years for them to rebuild their businesses and regain the trust of their clients and peers. Lessons were learned, and the community became more vigilant, ensuring that such a deceitful act would never happen again.


The diamond scam orchestrated by Viktor Smirnov serves as a cautionary tale of how greed and deception can infiltrate even the most trusted circles. It reminds us that in the world of high-stakes business, vigilance and due diligence are paramount, and trust must be earned and safeguarded with the utmost care.