My World

The world according to me!

…Or Are They?

Here’s the thing. Apparently diamonds equate pain and lies. Most diamonds came through De Beers; which operates a cartel; essentially an operation where the various businesspartners don’t compete with each other. As such, deals to maintain control and supply in order to artificially control prices are common. And yes that’s what happened with diamonds. Apparently in the 1930s the Chairman of the De Beer’s group believed the stability of the diamond trade depended upon this level of control.

Competition was shutdown, and basically one company called all the shots. While the company couldn’t set up shop in the United States, it definitely found its largest market there.

The demand for diamonds is a marketing coup. Diamonds are the hardest minerals on earth, the only thing that can cut a diamond is another diamond, so they should last forever. So why are they so expensive, and why isn’t there a steady re-sale of used diamonds from year’s past?

Consider the slogan, “A diamond is forever“. It speaks volumes. A diamond could last forever, but that slogan speaks to the emotions attached to the mineral. Love is supposed to last forever, or at least we want it to. So when a man proposes marriage to a woman, he uses a diamond ring as a symbol of his intention to spend his “forever” with her. The marketing was also designed to dissuade people from selling their diamonds or accepting used ones. Therefore securing a renewable market base.

And I haven’t even started talking about the atrocities these companies have committed to the people’s who lived on the lands they mined. Blood or conflict diamond is the name given when the sale of the minerals fund civil wars on the African continent. Blood diamonds refers more specifically to the mutilation of victims during the diamond funded conflict.

One of the biggest shockers to me was finding out that diamonds may not be as valuable as they’re purported to be. Notwithstanding the diamond investment scam of the 70s, they’re not a good investment tool. It’s difficult for individuals to sell their diamonds, because they are sold with high mark-ups not determined by market forces. Most people will only receive a fraction of what they paid for. Celebrities have the advantage because their “status” can increase the value of their jewelery, but even they aren’t immune. But while diamonds are considered as an alternative currency, experts say attempts to sell them will receive disappointing results.

For more on why you may need to reconsider you love for diamonds, click here and here. The Eco Salon website links to jewelers who specialise in ethical jewelry, so you could have your diamond and love wearing it too.

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