I didn't say new mines and mining companies are impossible. I said new diamond mining companies are probably a very tough sell, for the reasons I gave. A new mineral without a highly concentrated competitive landscape, or which is extremely plentiful in multiple countries, is probably a much better investment.
Read the article. De Beers didn't lose market share to a new mining start up, they lost it because political issues caused certain partners to leave the cartel (especially the Russian and Australian mines).
It was only when the cartel was severely weakened that the newer Canadian mines were able to opt to sell their diamonds independently, at which point De Beers had already fallen to 50%. Even these mines are not startups: the Diavik mine is majority owned by Rio Tinto.
>>> But look, if you're going to just keep inflating perfectly normal business barriers that affect any kind of business into reasons why somebody shouldn't get specifically into the diamond business, then it's you who probably shouldn't get into the diamond business.
My point is that the barriers are harder for diamond mining than for other businesses, like chat apps in 2011. Dismissing the barriers for a highly capital intensive and risky industry with a small number of major players seems reckless and makes it hard to take your points seriously.
>>> Somebody else with investment capital to burn sourcing product and building a market, like every other business in history, shouldn't let you get in the way.
Nobody is standing in your way. Go build your diamond company. You don't need the permission of Hacker News.
Read the article. De Beers didn't lose market share to a new mining start up, they lost it because political issues caused certain partners to leave the cartel (especially the Russian and Australian mines).
It was only when the cartel was severely weakened that the newer Canadian mines were able to opt to sell their diamonds independently, at which point De Beers had already fallen to 50%. Even these mines are not startups: the Diavik mine is majority owned by Rio Tinto.
>>> But look, if you're going to just keep inflating perfectly normal business barriers that affect any kind of business into reasons why somebody shouldn't get specifically into the diamond business, then it's you who probably shouldn't get into the diamond business.
My point is that the barriers are harder for diamond mining than for other businesses, like chat apps in 2011. Dismissing the barriers for a highly capital intensive and risky industry with a small number of major players seems reckless and makes it hard to take your points seriously.
>>> Somebody else with investment capital to burn sourcing product and building a market, like every other business in history, shouldn't let you get in the way.
Nobody is standing in your way. Go build your diamond company. You don't need the permission of Hacker News.