Are Diamonds Really Rare?
Are diamonds really rare?
A simple answer to this question is ‘NO’. Ask this question to a trader and he’ll surely say yes. It’s because he knows that’s how it needs to be marketed to be sold.
Diamonds for years have been considered as a symbol of love and romance. But if you read this, you would know how a successful brand campaign persuaded us to believe that diamonds are precious.
So why are diamonds so expensive? It all began in the 1940s when De Beers started an ad campaign ‘Diamonds are forever’ in America linking it to love and romance. But the process to dig out diamonds is too laborious. Also, the distribution of the number of diamonds to the market each year is highly regulated.
In fact, try selling a diamond to a trader and you know what my argument is. You can’t sell your diamond unless you are a certified trader. So in turn, it becomes a dead investment. Diamond pricing is also very complicated and is determined by an independent body.
To quote De Beers chairman Nicky Oppenheimer: “Diamonds are intrinsically worthless, except for the deep psychological need they fill.” In fact, De Beers have ensured that they don’t ever lower the price of diamonds. While the process of extracting it is laborious, the stone itself isn’t rare.
So whether you hate it or not, diamonds aren’t a good investment option.
Read more on the history of diamond trade.
But Marilyn makes a very strong case for the diamond, doesn’t she?
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