In a Huffington Post Blog Diamonds are Bullshit, author Rohin Dhar debunks the myth about the rarity of diamonds. Diamonds are the world’s most popular and sought after gemstone, to some, it is a mere display of affluence, to others it represents the longevity of one’s love to another.

Whatever the case may be, diamonds are the most profitable gemstone in the world not because of how rare or precious it is, but because diamond juggernaut DeBeers said so. Since the late 30’s, DeBeers started massively advertising diamonds as a rare commodity, prior to that, it was actually not popular American traditions to propose with a diamond ring. DeBeers was so successful in its marketing that it lead the entire culture to believe that diamonds are a precious gem stone, and even a century later, the mass still undoubtedly believes it. By carefully restricting the flow of supply, the firm was able to create an artificial ‘rarity’ to diamonds and skyrocket its prices.

The common misconception contributes to DeBeers large profits, and also the firm’s monopoly in diamonds. I am curious as to how can DeBeers maintain its monopoly power for nearing a century? What is preventing other firms from entering this market? It is very impressive to see how effective the campaign for diamonds in 1938 was , and that it would forever engrave the importance of diamonds into mass culture. DeBeers was able to target the strong desire of luxury goods for the wealth and the vanity of average purchasers to market diamonds towards the mass. Because even after knowing how common and worthless diamonds are in terms of intrinsic value, most people would still  regard diamond as precious as before.

External Blog Credit: http://www.huffingtonpost.com/rohin-dhar/diamonds-are-bullshit_b_3708562.html

photo credit: http://queconque.com.mx/wp-content/uploads/2012/04/marilyn_monroe_diamonds_are_a_girls_best_friend.jpg