12
comments
comments
The Truth About Diamonds
 Print
|
I just finished reading most of an article in The Atlantic titled Have You Ever Tried to Sell a Diamond?, a look into the history of diamonds, the De Beers cartel, and the great marketing machine that put into place the fact that diamonds are forever, a sign of betrothal, and a scarcity that must be sought after; into the American social fabric and psyche.
It’s a very long article, seven “pages” worth, but it’s definitely an interesting and educational read.
{ 12 comments, please add your thoughts now! }
Related Posts
 By Jim |
 Stumble It! Bookmark reddit.comTags: Dec 13, 2006 | Read more in Personal Finance |
Like this article? Get all the latest articles sent to your email for free every day. Enter your email address and click "Subscribe." Your email will only be used for this daily subscription and you can unsubscribe anytime.
I’m personally not a huge fan of diamonds. They are shiney yes but I could really care less if I owned any jewelry adorned with it.
Recently I proposed to my girlfriend, but gave her a New Zealandjade pendant (something more culturally specific and resonant here in NZ) rather than a diamond ring. I got sick and tired of people telling me that I HAD to go deep into debt and buy her a massive diamond.
I recently also proposed but after two months now the girl is not sure. I think after seven years you would know by now. The worst part is I bought a 15k ring now is just sitting their. And I can’t sell it for what I bought it for. But if you are in to Diamonds I recommend BlueNile.com best place to buy. I only wish their return policy was two months money back guarantee instead of one month. Diamonds are only for the ladies. I don’t know of any guy drooling over diamonds.
I’ve heard tidbits about the diamond cartel/monopoly from people, but not until reading this article did I know the details. It’s amazing how their control over trade in combination with massive marketing has changed our entire culture over a little piece of stone that has very little intrinsic value. It kind of annoys me to just think about it and makes me glad that I haven’t bought any diamonds.
It’s also interesting to note that at the end of this article he talks about what is causing the diamond cartel to loose control and cause the drop of prices by the mid-80’s, but it’s 15 years later and the situation hasn’t really changed much.
A few of my friends have had to study this as a case study for MBA classes.
I think the interesting part of the mid-80’s diamond value drop was the fact that there was a recession, just as there was a drop in the Great Depression – anytime prosperity falls, you’ll find that buying these discretionary things. Now that we’ve left that behind I think that the diamond market will do just fine.
A lot of marketing happens and holidays are created (think of all the “days” where you can buy a $5 Hallmark card)… all fake.
My girlfriend’s response after sending her this link: “it’s not going to change my mind”.
Drat.
I actually have tried to sell a diamond and it was a nightmare. It cost my ex $2,200, but I sold it for $800 and that’s only because the dealer felt sorry for me. He said he’d normally pay about $600 to $700 for a diamond like the one I had.
Besides, they use slave labor in diamond mines and the poor Africans get nothing (thought cartels and corrupt governments might prosper), so I don’t want anything to do with another diamond.
All these diamond talks make me want to go see the movie Blood Diamond
I think diamonds are generic- I’d rather recieve a ruby or emerald when the time comes. =)
When we got engaged, I asked my husband to get me a high-quality, ideal cut CZ… $7 + $45 mounting fee (although he spent over 10x more for the platinum mounting). It’s beautiful! At first, he didn’t want me to tell anyone because he thought it would make him look cheap. But I’m proud of the fact that we saved money and no lives nor limbs were lost. Actually, his friends all think he’s a stud… =D
I was surprised from the article by how the ’scarcity’ was actually a managed thing!? wonder what other expensive items we have are the result of purely ‘manufactured scarcity’… it’s odd in a world where abundance rules in many ways that now scarcity has to be manufactured… guess that explains the importance of branding. So the next time you covet something, give pause to how ’scarce’ it really is, whether its value is lasting or not, and how much a 2nd hand one really retails for.
If you’re going to buy at all, buy Canadian – it’s said to be the best value for your money out there today.
link
The cool part is, if I remember the story right, that there were a couple younger geologists wandering around the Northwest Territories back in the early 90’s and commented to each other that the lay of the land looked ripe for diamonds. They started digging and found one of the world’s largest diamond reserves (jackpot!). Rumor has it that the mines are only at some miniscule percent of their production capacity. Here’s the wiki on the deal – too bad De Beers seems to be getting their dirty hands into the mix next year.
In 1991 a new mining rush and fourth building boom for Yellowknife began with the discovery of diamonds 300 kilometres (190 mi) north of the city. The Ekati Diamond Mine opened in 1998. A second mine, Diavik Diamond Mine, began production in 2003. Production from the two operating mines in 2004 was 12,618,000 carats (2,500 kg) valued at over C$2.1 billion[1]. This ranked Canada third in world diamond production by value, and sixth by weight. A third mine, De Beers’ “Snap Lake” project, received final approval and funding in 2005, with plans for production in 2007.