The Decline of the Diamond: In 2019, Are Diamonds Worthless?

Diamonds are a girl’s best friend! Right? Well, maybe. Because while there’s no denying the natural beauty of these gemstones, the overall attitude toward diamonds has begun to shift slightly in recent years.

Many people still view diamonds as among the most prized gifts in the world, and yet more and more people have come to ask the question, are diamonds worthless?

Everyone places a different value on beautiful gems. And while popular perspective might be changing, quality diamonds are still in demand and are thus still quite expensive.

Let’s take a closer look at the world of diamonds to see if they are really worth the price.

The Decline of the Diamond: In 2019, Are Diamonds Worthless?

In a world of social consciousness, are diamonds worthless? Learn about the rise and fall of the diamond here and get predictions for the future.

The Historical Value of Diamonds

Believe it or not, the immense value of diamonds didn’t become a part of popular culture until the De Beers corporation set up their first diamond mines in South Africa.

De Beers created one of the most effective marketing campaigns in the history of advertising. They convinced consumers that every engagement required a diamond ring and that it should be as expensive as you could possibly afford.

This was masterful marketing and changed the way the world looked at these gemstones that were actually in abundant supply.

De Beers quickly cornered the market, gaining control of the rough diamond supply in Africa and South America. They managed to maintain a monopolistic control of the market for decades, releasing only a limited amount of rough diamonds in order to create the perception that diamonds were rare.

Changes in the Diamond Industry

Technology has made a huge impact on the ability to locate diamond. Politics is also a significant factor, as countries negotiate deals with De Beers for the distribution of rough diamonds. With so much money at stake, some countries are much more willing to negotiate than others.

Myths and Misconceptions

As with many things in the world, there are plenty of myths and misconceptions about diamonds. Let’s take a look at a few:

Diamonds Are Rare

Believe it or not, diamonds are actually extremely common gemstones. In fact, they are among the most plentiful gems on earth. And as advances in technology allow geologists to make new discoveries, the reality becomes more and more clear that diamonds are plentiful rather than rare.

Diamonds Are the Most Precious Stone in the World

This is another huge myth. The truth is that the preciousness or value of diamonds is purely a product of great marketing.

Diamonds Are the Most Brilliant Gems in the World

One of the primary qualities people shopping for diamonds focus on is “brilliance”. This simply refers to how much light the stone reflects back to the naked eye. When properly cut, diamonds can be exceptionally brilliant. However, diamonds pale in comparison to a number of other gemstones.

Another important quality people shopping for a diamond look for is the amount of “fire” it contains. This refers to the gem’s ability to separate white light into the colors of the rainbow. The truth is that diamonds aren’t even close to the top of that list.

The True Value of a Diamond

As with anything, the monetary value of an object is determined by market demands. Here are a few things to consider:

Diamonds Are Depreciating Assets

Are you pondering the true value of diamonds? Consider this: no matter how much you pay for a diamond, the moment you walk out of the store, that diamond immediately loses a significant portion of its retail value.

Compare this to the value of silver and gold. These assets are able to be melted down, changed in form, and sold or traded at any time, while very much maintaining their value. Diamonds don’t even compare.

Are Diamonds Good Investments?

The short and easy answer to this is no. Some people still consider diamonds to be a smart investment, but this simply isn’t the case. The only way De Beers was able to control the price of diamonds for so many years, was by controlling the world’s supply. They accomplished this by purchasing all diamond mines around the world.

Still not convinced? When was the last time you tried to sell a diamond? As stated earlier, diamonds drop in value the instant they leave the store. The retail markup is generally 100%-200%, giving stores very little incentive for buying back a diamond once sold.

And yet the Lover Affair with Diamonds Continues

When you look beyond the topics of market value, supply and demand, and even how diamonds compare to other gemstones of the world, the reality is that diamonds create an emotional response.

Perhaps this is due to effective marketing, or pure perception, yet it remains undeniable.

Diamonds are objects of great and enduring beauty. They are true miracles of nature, capable of creating tremendous joy and bringing tears to eyes of those lucky enough to receive them.

Things of beauty will always be cherished, and diamonds are the ultimate example of this. Market forces might impact price depending on the year and economic conditions, and yet the desire to possess quality diamonds seems to have remained steady, decade after decade.

Diamonds do not rust or turn to dust. They cannot be broken, nor their light dimmed by age. In fact, it’s truly amazing to consider that a stone trapped within the earth for millions of years could shine so bright and beautiful, and remain an object of desire for so many people.

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