"A diamond is forever," but perhaps not for the increasing number of consumers who are spurning the gemstone for its lab-grown counterparts and gold.
  • HobbitFoot @thelemmy.clubEnglish
    52·
    5 months ago

    I don’t think diamonds have ever been an investment?

    Maybe not a ring, but loose gem stones definitely were an investment due to their rarity.

    Diamonds and other gem stones are going the way of aluminum. Aluminum used to be a rare metal until industrial smelting techniques were developed in the 19th century.

    • Pfeffy@lemmy.worldEnglish
      4·
      5 months ago

      Diamonds have never been rare in modern times. They are controlled by cartels and kept in massive warehouses to keep the supply low artificially. Not rare enough to justify the absurd costs anyway.

      De Beers maintained a monopolistic hold over the diamond market for several decades, controlling 75-85% of the diamond rough supply. They carefully released only enough rough diamonds to satisfy then-current demand, while continually adjusting the degree of rough diamond availability. Of course, this made prices escalate and reinforced the perception of diamond’s rarity. De Beers actually mined considerably more rough diamonds than they sold. They maintained a large warehouse of uncut diamonds in London. As a result, they weren’t allowed to do business in the United States and a few other countries.

      • international gem society