Author Topic: Diamonds .. Why?  (Read 427 times)

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Offline mrclose

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Diamonds .. Why?
« on: January 31, 2014, 06:56:17 PM »

A local company here is running a promo on their diamonds.

The women (in the promo) are complaining that until they went to this store (Diamonds Direct) their husbands, boy friends, etc. etc. couldn't purchase the Big Rock that they always wanted, (lusted after).

Other than diamond sellers pushing these rocks and every woman wanting a bigger one than they could afford .. where's the value come from??

I understand industrial use diamonds but the rock on women's fingers .. ??

Does greed push the price?

What?

Offline Chieftain

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Re: Diamonds .. Why?
« Reply #1 on: January 31, 2014, 07:01:19 PM »
A local company here is running a promo on their diamonds.

The women (in the promo) are complaining that until they went to this store (Diamonds Direct) their husbands, boy friends, etc. etc. couldn't purchase the Big Rock that they always wanted, (lusted after).

Other than diamond sellers pushing these rocks and every woman wanting a bigger one than they could afford .. where's the value come from??

I understand industrial use diamonds but the rock on women's fingers .. ??

Does greed push the price?

What?

Scarcity is the issue....

I think it was Arthur C. Clark that postulated that the core of Jupiter was made up of nearly pure diamond in a mass about the size of Earth....something about all that carbon settling out of the complex hydrocarbons in the incredible pressure and heat under Jupiter's atmosphere.  Get ahold of a piece of something like that and you could collapse the price of diamonds world wide.....

 :beer:

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Re: Diamonds .. Why?
« Reply #2 on: January 31, 2014, 07:02:27 PM »
A local company here is running a promo on their diamonds.

The women (in the promo) are complaining that until they went to this store (Diamonds Direct) their husbands, boy friends, etc. etc. couldn't purchase the Big Rock that they always wanted, (lusted after).

Other than diamond sellers pushing these rocks and every woman wanting a bigger one than they could afford .. where's the value come from??

I understand industrial use diamonds but the rock on women's fingers .. ??

Does greed push the price?

What?

I could be facetious and say they are shiny and mesmerize women.

Same reason people like gold and silver. They are rare, have seemingly magical properties and have been bigged up as important.
The price of diamonds is very strictly controlled. You thought OPEC was bad? Take a peek into DeBeers sometime. They control the diamond trade. Full stop - there is no secondary diamond market.
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Online mystery-ak

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Re: Diamonds .. Why?
« Reply #3 on: January 31, 2014, 07:03:00 PM »


Couldn't help myself.....

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Offline Rapunzel

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Re: Diamonds .. Why?
« Reply #4 on: January 31, 2014, 07:06:16 PM »
Nope the price is based on the 4C's...  color, cut, carat and clarity.   Cutting is a big deal, it takes a real artist to do it properly and done wrong a beautiful diamond can become worthless.  Diamonds which don't make the grade become industrial grade diamonds, thus the supply of quality diamonds (meeting the 4C's) is low and the better they fall on the 4C's the more expensive the stone.......

Popularity is a result of the De Beers and a massive advertising campaign (and a bit of hording, too).  So to return to the original question: why are diamonds so expensive?  Lack of real quality and demand resulting from an effective marketing campaign.

« Last Edit: January 31, 2014, 07:07:34 PM by Rapunzel »
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Re: Diamonds .. Why?
« Reply #5 on: January 31, 2014, 07:12:53 PM »
It's a bit like black pearls in the 1880's, jet now (only found in two places in the world and incredibly rare) or bluejohn. If it is scarce, it is worth more. Doesn't make a whole lot of sense for something you can't eat, sleep in or keep warm with, but people are still acquisitive monkeys at heart.
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Offline AbaraXas

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Re: Diamonds .. Why?
« Reply #6 on: January 31, 2014, 07:41:52 PM »
Scarcity is the issue....

I think it was Arthur C. Clark that postulated that the core of Jupiter was made up of nearly pure diamond in a mass about the size of Earth....something about all that carbon settling out of the complex hydrocarbons in the incredible pressure and heat under Jupiter's atmosphere.  Get ahold of a piece of something like that and you could collapse the price of diamonds world wide.....

 :beer:

The funny thing is diamonds aren't as scarce as people realize. There are just a few companies that control all the diamond mining (De Beers being the biggest one) and control the supply to keep the prices high. This isn't a conspiracy theory like 'there is no gold in Ft. Knox either. The US Justice Department addressed this in 1948 and because of monopoly regulations, prevent De Beers from selling directly in the US. All diamonds must be purchased through third party brokers (another reason for the high prices).

I believe this is on the verge of changing though. An independent company, Brazil Minerals (BMIX) has gotten the rights to sell South American diamonds directly to the US market from some massive mines they own independent of the De Beers empire. The price of diamonds will be interesting to watch over the next year or so.
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Offline AbaraXas

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Re: Diamonds .. Why?
« Reply #7 on: January 31, 2014, 07:43:42 PM »
I could be facetious and say they are shiny and mesmerize women.

Same reason people like gold and silver. They are rare, have seemingly magical properties and have been bigged up as important.
The price of diamonds is very strictly controlled. You thought OPEC was bad? Take a peek into DeBeers sometime. They control the diamond trade. Full stop - there is no secondary diamond market.

All about to change. Brazil has gone international. Watch BMIX over the next year.
Никогда не обманывайте себя мыслью, что вы «влияете» или вносите изменения в Интернет. Это эфемерное удовольствие.

Offline Chieftain

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Re: Diamonds .. Why?
« Reply #8 on: January 31, 2014, 08:14:25 PM »
The funny thing is diamonds aren't as scarce as people realize. There are just a few companies that control all the diamond mining (De Beers being the biggest one) and control the supply to keep the prices high. This isn't a conspiracy theory like 'there is no gold in Ft. Knox either. The US Justice Department addressed this in 1948 and because of monopoly regulations, prevent De Beers from selling directly in the US. All diamonds must be purchased through third party brokers (another reason for the high prices).

I believe this is on the verge of changing though. An independent company, Brazil Minerals (BMIX) has gotten the rights to sell South American diamonds directly to the US market from some massive mines they own independent of the De Beers empire. The price of diamonds will be interesting to watch over the next year or so.

Fascinating...I was not aware of the Brazilian moves any yah...this will be very interesting to watch over the next few years....

Thanks for sharing that...

 :beer:


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