Why are diamonds a valuable investment? Is it because they are so rare? Anyone who understands how economics works, knows that price is often the result of demand. A product is only priced in such a way as to provide both profit and also perceived value in the market place. If bananas where considered like gold, then their price would reflect that and they would be sky high, despite the fact that they cost about the same to obtain and also market.
Diamonds are like that. They are part of a marketing campaign. About 100 years ago diamonds were a real rare find, that only royalty could afford and purchase. Then suddenly in the mines of South Africa, that all changed. So many diamonds were found that miners could swim in them like large ponds of water. Suddenly, the price of diamonds plunged.
A man called Cecil Rhodes saw spinning dollar signs in his eyes, like a cartoon character, and he bought up huge sums of the now cheap diamonds. His company’s name was DeBeers, and they established a monopoly on diamonds and persuaded almost every diamond producing nation in the world to do business only with DeBeers. Cecil Rhodes and his company now owned over 80% of all the diamonds in the world; past, present and future.
The world has changed since those days and DeBeers now only has about a 65% hold on all diamonds, but they also hoard diamonds. They drive the price up and keep huge storehouses of diamonds that could be several decades out of the Earth by the time you put that ring on her finger. But the brainwashing was soon to follow, for that is how true selling works. Find a need and fill it is marginally honest, but create a need and fill it is a fine alternative if the first one doesn’t pan out.
Marketing strategist then decided they needed to make everyone believe a common perception, despite the inherent debt it would create for someone who had fallen in love. They created the marriage market. Now, diamonds are the proper way to express love. And yet, they don’t cost anywhere near what you pay for them.
