The Economics of Diamonds, the Biggest Marketing Scam in History Orchestrated by the Most Successful Cartel Ever.
The diamond industry has to be one of the biggest marketing scams in the history.
The reality is that diamonds are not particularly scarce. This is very true in lower grades of diamonds. It is true that gem-quality, large, and colored diamonds are rarer and thus more expensive. The majority of diamonds mined are of lower quality and used for industrial purposes. Furthermore, lab-grown diamonds are becoming plentiful which negates the scarcity of diamonds.
The De Beers diamond hoax.
De Beers advertising suggested that diamonds are the a symbol of love and commitment. By controlling the supply, whilst creating a demand, De Beers turned diamond engagement rings into a tradition. Many have expressed the ethical market manipulation.
De Beers, a British multinational corporation founded in 1888 by Cecil Rhodes (Jewish), played a pivotal role in shaping the diamond industry. The company was established after the discovery of large diamond deposits in South Africa, which significantly increased the supply of diamonds in the market. To maintain the value and rarity of diamonds, De Beers sought to control the diamond trade by consolidating mines and establishing a monopoly.
By the early twentieth century, the demand for diamonds began to wane due to various factors, including economic instability and changing social norms. De Beers needed a new marketing strategy to revive interest in diamonds to maintain high prices.
This led to the birth of the De Beers diamond hoax, a marketing campaign designed to create an artificial demand for diamonds and elevate their perceived value.
In 1947, De Beers hired the New York-based advertising agency N.W. Ayer & Son to create a marketing campaign that would promote diamonds as the ultimate symbol of love and commitment. The agency devised the now-iconic slogan “A Diamond is Forever,” which cleverly linked diamonds to the idea of everlasting love.
The campaign aimed to convince consumers that a diamond engagement ring was an essential part of any marriage proposal and that the size and quality of the diamond reflected the depth of a man’s love for his partner. This message was reinforced through various advertising channels, including magazines, radio, and television. De Beers also collaborated with celebrities and fashion designers to showcase diamond engagement rings in high-profile events and public appearances.
The “A Diamond is Forever” campaign was a resounding success. Within a few years, diamond engagement rings became the norm, and the demand for diamonds skyrocketed. De Beers managed to create a lasting tradition that is still prevalent today.
Jews have had a long and significant connection to the diamond industry, both historically and in contemporary times. From their early involvement in Amsterdam’s diamond trade to their prominent role in Antwerp and Israel’s diamond centers, Jews have shaped and been shaped by the diamond trade. [*]
By the late nineteenth century, Amsterdam had the largest diamond industry in the world, employing some 29 percent of all Jewish working men and 10 percent of all Jewish working women. Their economic activities in this field were closely connected to the social, cultural, familial, and political sphere. In many ways the Algemene Nederlandse Diamantbewerkersbond (the General Dutch Diamond Workers’ Union, or ANDB) formed the direct link between these different spheres. The union brought together men and women (including married women), Jews and non-Jews, working in various professions, under different payment systems and working conditions, developing standard wages equal for all. While the primary goal was economic, the outcome had at least as many social and cultural consequences, including a change in social relationships between Jewish and non-Jewish workers as well as a growing number of women, who continued working after marriage. The case study of the ANDB in Amsterdam allows for a broad interpretation of ‘economy’ in Jewish history. [The Impact of the Diamond Industry and the Diamond Workers’ Union on Jewish Life in Amsterdam, 1894–1920 Karin Hofmeester]
Read the full article:https://radiochristianity.com/images/posts/Diamonds/3Karin.pdf
ref:
glenmont.co/the-de-beers-diamond-hoax-marketing-campaigns-and-legacies
Comments:
Lew Marcrum
Former Fire Assayer and Gold Refiner
Is there any truth that Debeers control the global supply of diamonds by stockpiling them in order to artificially inflate their value?
Though DeBeers claims not to do so now, it was common practice in the past. I seriously doubt they really stopped, but they have a lot more competition now.
When DeBeers controlled 80–90% of the world’s diamond mine output they could keep a pretty tight grip on how many carats were put into the world market each year. Raw diamonds were, probably still are, sold in a sort of market called a “bourse”. There buyers gathered, by invitation only, to purchase a parcel of diamonds for their cutters.
At a bourse there are tables with place names for all invitees. Each buyer sits at his assigned seat, and a small box is placed in front of him. It contains his allotted diamonds for that sale. He is not allowed to exchange the parcel if he isn’t satisfied. He is not allowed to haggle or bargain for a better price. He is offered a certain number of carats at a certain price, and that’s it. He can refuse, but the penalty is not to be invited back again. No one EVER refuses.
The bourse sells a predetermined number of carats from the total output of all the mines controlled by DeBeers. The remaining mine production goes into a vault to be sold at another time, thus assuring a certain “rarity” within the world market and a stable (high) price.
Diamonds in general aren’t all that rare, but larger stones of excellent quality are. No matter how high the mine output, or how many diamonds are put on the market at any one time, those premium stones will always be rare and expensive.
