# The Truth About Diamonds: Unmasking Their Alleged Rarity
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Chapter 1: The Illusion of Rarity
For a long time, many of us have been led to believe that diamonds are scarce treasures. The high prices certainly reinforce this notion. However, the diamond industry has strategically fostered a fabricated sense of scarcity, which has significantly influenced market prices.
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Section 1.1: The Origin of the Myth
The De Beers Corporation was pivotal in establishing the first major diamond mines in South Africa. They subsequently initiated a groundbreaking marketing campaign that ingrained the idea that diamonds were essential for engagement rings. Through celebrity endorsements and mass media, they successfully positioned diamonds as symbols of wealth and prestige.
At one point, De Beers controlled between 75% to 85% of the global rough diamond supply. They managed this dominance by regulating the release of diamonds into the market, manipulating prices and reinforcing the perception of their extreme rarity. Although their influence over the market lasted for decades, they faced legal challenges in the United States after being discovered hoarding diamonds in a London warehouse. This revelation forced them to cease their stockpiling practices in 2000 and culminated in a guilty plea for price-fixing in 2004.
Section 1.2: Shifts in the Diamond Market
Recent advancements in satellite technology, originally designed for locating oil reserves, have uncovered new diamond-rich areas. Australia emerged as the first developed nation to yield a significant diamond supply, prompting De Beers to negotiate a distribution agreement, though they retained rights to the notably rare pink diamonds.
“In 1996, Australia ended its arrangement with De Beers.” — GemSociety.org
Additionally, De Beers had established a similar partnership with the Soviet Union, which dissolved following the USSR's collapse, allowing Russia to sell its diamonds independently. Despite these challenges, De Beers continues to be a major player, controlling approximately 35% to 40% of the rough diamond supply today. With more suppliers entering the market, the diamond industry is no longer as monopolized as it once was, although many still follow De Beers' pricing guidelines. Consequently, diamond prices have remained relatively stable, but an increase in demand could lead to a significant drop in prices.
Chapter 2: Debunking Myths About Diamonds
The common belief that diamonds are exceptionally rare is misguided.
The first video, "Diamonds aren't rare, so why are they so expensive?" explores the underlying factors that contribute to diamond pricing and rarity perceptions.
The second video, "Diamonds Aren't Rare," further discusses how marketing has shaped our understanding of these gemstones.
As stated by GemSociety.org, "While we have much to learn about the Earth’s interior, our current knowledge of gem formation indicates that diamonds are likely the most common gem in nature." Despite their reputation as a luxury item, diamonds are not even the most valuable gemstones available. For instance, Burmese rubies can fetch around $100,000 per carat for specimens weighing 5 carats or more, while the average price for a 5+ carat diamond is $44,500. Even less well-known gems like alexandrite can command $70,000 per carat for similar sizes. This disparity highlights the effective advertising strategies employed by De Beers, solidifying diamonds' status as symbols of wealth.
In conclusion, diamonds are not as rare as we often assume. Keep this in mind the next time you consider purchasing jewelry!