Diamonds

Are Diamonds really rare and valuable?

Diamonds are our most popular gemstone. That hasn’t always been the case. It was only in the last century that diamonds became readily available. Prior to that, rubies and sapphires were the most popular gems, especially for engagement rings.

All gem grade materials are rare, composing just a tiny fraction of the earth. However, among gems, diamonds are actually the most common. If you doubt this ask yourself; “How many women do you know that do not own at least one diamond?” Now ask the same question about other gems.

And the common belief that diamonds are inherently valuable? It’s just not true. In fact, reselling a diamond for top dollar isn’t all that easy. Once you leave the jewelry shop after buying a diamond, it loses 50% of its value. It’s what economists call a thin market.

One diamond cartel, De Beers, has artificially driven up the price of diamonds for decades. A 1920s advertising campaign set a cultural expectation of diamonds as an expression of love that has endured since.

DeBeers maintained monopolistic control over the diamond market for several decades. They carefully released only enough rough diamonds to satisfy then-current demand, while continually adjusting the degree to which the rough diamonds were made available. This caused continually escalating prices, and of course, it increased the perception of rarity.

With that, we can almost say that, crystallized carbon — one of the most abundant substances in the universe, Diamonds are a worldwide scam.

Debunked!

 P.S. - If you have any urban legend or superstition that you are doubtful of, just comment it and I will try to debunk that.