Diamonds are much, much more common than you think and, in fact, are relatively WORTHLESS ! Another British Royals CONfidence GAME! Corporate advertising, marketing and promotional campaigns along with the help of British royalty and Hollywood propaganda artists have created a perceived need for diamonds in the mind of the public. The true value of diamonds is very nominal since the stones are quite plentiful and have very limited uses. Yet prices for the carbon stones have been driven up by the cartels that hoard diamonds in order to constrict the supply, thereby creating an artificial scarcity and driving prices exhorbitantly high. As you will see, the diamond dealers can hardly contain their laughter..
1) The most common misconception about engagement rings is that they’re some kind of ancient tradition that’s deeply embedded in human history in societies around the world. This is completely false. The idea of a diamond engagement ring is roughly a century old. Guess who invented the concept? Not surprisingly, it’s the same people who mined the diamonds — the De Beers diamond syndicate. How far did De Beers go in their quest to create demand for diamonds? Edward Jay Epstein notes in his famous investigative article:
“In its 1947 strategy plan, the advertising agency strongly emphasized a psychological approach. “We are dealing with a problem in mass psychology. We seek to … strengthen the tradition of the diamond engagement ring — to make it a psychological necessity capable of competing successfully at the retail level with utility goods and services….” It defined as its target audience “some 70 million people 15 years and over whose opinion we hope to influence in support of our objectives.” N. W. Ayer outlined a subtle program that included arranging for lecturers to visit high schools across the country. “All of these lectures revolve around the diamond engagement ring, and are reaching thousands of girls in their assemblies, classes and informal meetings in our leading educational institutions,” the agency explained in a memorandum to De Beers.”
I have nothing against clever marketing campaigns, but this is different. It’s not like with cars, for example. You know you need a car, so the car companies compete for your attention with their ads.
In this case De Beers spent millions upon millions convincing the public that they needed to buy a product that they basically created out of thin air (thin air that they alone controlled).
2) Diamonds are not an investment — they are a retail product like any other. People explain away spending thousands of dollars on a little stone because they mistakenly believe that the diamond is a solid investment. Are there any other investment classes where the person selling you the asset makes a minimum 10 percent profit margin (usually much more)? Most people would be lucky to get half of what they paid if they tried to sell a ring the day after they bought it. Don’t fool yourself into thinking that buying a diamond is a safe place to put away money for a rainy day.
3) The diamond jewelry market is a shark tank. Even consumers that spend hours online learning about diamonds can easily get screwed by one of the many unscrupulous dealers out there (both online and bricks & mortar). There’s virtually no end to the various games dealers can play to help them eke out a higher return (and therefore giving you less value).
4) Spending a month’s (or two!) salary on something so impractical — at the exact same time you are beginning your new life together as a budding family — is a very poor financial decision. I’m not only a very experienced diamond dealer, I’m also a father of six, married for 13 years. The expenses only grow with time, they don’t get easier! Believe me, five years later, you’ll be wishing you had a spare five grand lying around.
5) Men, you don’t need to waste a ton of money to prove your manhood. If Mark Zuckerberg can forgo the diamond engagement ring, then you can too.
6) Women, you don’t need your man to waste a ton of money to prove that he loves you.