Thinking about proposing to your better half? Great! But before you drop a couple of stacks on an expensive rock, there are a few things you should know. No, not what size, cut, or price to consider. We’re talking about why diamond rings are a huge scam — and there’s really nothing you can do about it.
Why diamonds are a scam?
The perception of diamonds as a scam arises from the diamond industry’s practices of creating artificial scarcity and inflating prices, combined with aggressive marketing that exaggerates the value of diamonds. Additionally, diamonds typically have a poor resale value, diminishing their investment appeal.
Diamonds Are Forever A Scam
You probably think giving the love of your life a diamond engagement ring is a tradition that dates back centuries. It’s not. That all started in the 1930s when diamond sales declined during the Great Depression. Diamonds were advertised as a precious rarity and, for a time, they were, until a huge mine was discovered in South Africa by De Beers. De Beers was afraid that prices would go down if supply was too high, so they kept it a secret. The company then devised a marketing strategy that diamonds were the ultimate symbol of romance and undying love. If you were a man, the only way you could show your devotion was by shelling out the big bucks.
How they did it was smart. They teamed up with N.W. Ayer, a New York ad agency, created the tagline a diamond is forever. Ayer used celebrities and the growing popularity of film as promotions. In movies, characters exchange diamonds as signs of true love. Diamonds were conspicuously shown around their necks or fingers when starlets took publicity photos. What’s a blatant example of this strategy? Ask Marilyn Monroe.
Marilyn Monroe didn’t start the diamond craze, but her performance in “Gentlemen Prefer Blondes” really hit the nail on the head. Diamonds were a status symbol and young women everywhere were obsessed with capturing her look.
Beyond the financial implications, the diamond industry is plagued by ethical issues, including exploitative labor practices and the funding of conflicts, known as blood diamonds. These ethical dilemmas add another layer to the diamond industry scam challenging the morality of supporting such an industry with our purchasing decisions.
What Are Diamonds Worth?
You’ve probably heard of the two months salary rule, where the amount you spend on a ring should be equivalent to two months pay. Well, that’s just another marketing ploy. De Beers convinced men that the more they spend on a ring, the greater their love is.
Everything we know about engagement rings is the result of clever marketing. Even De Beers CEO Nicky Oppenheimer admits “Diamonds are intrinsically worthless, except for the deep psychological need they fill.” What does this mean? Diamonds have no value, but we’ve been duped into thinking they do. Don’t believe it? Have you ever tried reselling a diamond? Probably not, since most of us can’t afford to have diamonds just lying around. But if you did, you’d see that you get very little back for what you paid for.
In his article, Edward Jay Epstein breaks down the secrets of the diamond industry. He explains that since retail stores mark up the prices of their rings, the store would have to pay you the same price they originally paid for the diamond. For example, if you paid $2,000 for a ring, you might only get $600 back. This is being generous, of course. That’s why De Beers put it in our heads that diamonds are forever. Because if it’s a sign of eternal love, then you will never try to resell it and find out how worthless they really are.
Long Standing Traditions
Having traditions is great and exchanging rings is still a sweet symbol of devotion. But the truth is that engagement rings shouldn’t cost us a fortune. If the person you are with truly loves you, then the ring’s price shouldn’t matter. The real value is what the ring represents.
RELATED: Why The Diamond Industry Is Crashing
Unfortunately, diamond rings are so ingrained into our culture now that we can’t get away with not exchanging them. Even movies like Blood Diamond, which exposed the horrors of diamond mining, couldn’t dent this tradition. Studies show that diamond sales have decreased in recent years as more adults develop different tastes.
Still, there’s no denying that the diamond ring scam is the most successful marketing campaign ever. The diamond market is notoriously controlled by a few key players who dictate the prices and flow of diamonds worldwide. This monopolistic control enables the implementation of a diamond ring scam where consumers are led to believe in the inflated value of diamonds as investments.
The allure of diamonds is undeniable, but so is the reality of the diamond scam. As consumers, we must look beyond the sparkle and understand the implications of our purchases. For more insights into navigating these treacherous waters and protecting your interests, delve into our Tips And Strategies For Protecting Your Business on Grey Journal which is dedicated to uncovering truths and providing you with the knowledge to make empowered decisions in all aspects of business and life. Choose wisely and let not the diamond industry’s shimmering facade rob you of your hard earned money or ethical peace of mind.
I have been absent for a while, but now I remember why I used to love this website. Thank you, I will try and check back more often. How frequently you update your website?
It’s about time someone has the courage to say the obvious….yes we are all manipulated and pay the price. Diamonds are overrated and used to inflate the human ego. We need to deal with the basic fundamentals of life..looking after each other regardless of race religion wealth….and pushing back on self interested political agendas.
A diamond is really worth what someone is willing to pay for it.
Which industry does not use marketing trick now a days guide me. It’s just a lean story why some 1 posted this I don’t know but I don’t want to give examples oe else there will ne no difference between me and the reporter .
VITEJ, what does that even mean? I truly would like to make some sense of your comment. Please hit back!