The Diamond Invention. ⇒
25 April 2005, lunch time
A very detailed look at the diamond industry, and basically how it's a big sham. This link was found via Ask.Mefi.
This is a post from my link log: If you click the title of this post you will be taken the web page I am discussing.
I’ve read about half of this so far. It’s good. I recommend it.
by mk on April 25 2005, 11:56 pm #
I haven’t read it as of yet, but I’ve read other articles and watched documentaries on the diamond industry. I understand its a sham, but sadly so are so many things. Ranging from items like gold, which has changed in use and an ecoonmic unit so widely (though gold is so very difficult to analyize…), to fad toys, to clothing and for some anti-corporate types to equity instruments.
However, it might be that diamonds have now created their own market and despite its roots as being next to useless (other then cutting) and that its not that rare; it’s simply society’s choice for something of value. Things like fiat money are highly inflated, but the multiplication of money interestingly makes artifical value into real value.
This may not be too clear, but in summary, if enough people believe in a sham, it becomes real
by Victor on April 26 2005, 5:07 pm #
I finished reading the book last night.
I think there’s a difference between some of the things you list and diamonds. There is no secondary market for diamonds it seems; you can’t use them as an investment. The demand for diamonds as gems has been almost entirely developed through a long term advertising campaign. Also, the diamond trade is essentially a global monopoly.
Not that diamonds are bad or that it’s wrong to buy a diamond ring.
by mk on April 26 2005, 6:18 pm #
I agree with a lot of what you’re saying. Diamonds for sure have no real secondary market, and it was a product of advertisement and careful placement (royalty and other celebreties). However, I think that the value of diamonds may be similar to the value of items like baseball cards. If you added up the Becket value of all your baseball cards, you’d feel like a rich man. A collector feels richer, “oh what a deal, I just made 2 bucks on that trade”, but really who’s going to buy it and whos going to sell them? However, you do feel richer, and it has value to you, despite the fact that it will never be sold. The exceptions that are sold are nominal (card stores) or rare. The rare ones can be compared with diamonds that are actually rare and auctioned.
Second, although advertising got diamonds where they are, they’re marketability is now somewhat self-fulling. Diamond wedding rings and other diamond jewelry is part of culture now. So pretty successful advertising, but is advertising still as necessary? I.e. if they stopped pushing diamonds, would people stop buying them these days?
Hard to argue with the Monopoly argument though, that’s certainly more true for diamonds then the other items I listed.
by Victor on April 26 2005, 8:28 pm #
Actually, I can’t remember the last time I encountered any advertising for diamonds. I do rememeber those ads that just show people’s shadows but I think those were a long time ago.
by mk on April 26 2005, 8:36 pm #