- cross-posted to:
- upliftingnews@lemmy.world
- cross-posted to:
- upliftingnews@lemmy.world
cross-posted from: https://lemmy.ml/post/16504047
Diamond industry ‘in trouble’ as lab-grown gemstones tank prices further
cross-posted from: https://lemmy.ml/post/16504047
Diamond industry ‘in trouble’ as lab-grown gemstones tank prices further
Per the article the price only went down like 5%, and it’s only down 30% from it’s high in 2022, so doesn’t sound like they’re really going to stop being ridiculously priced.
Also, this part: “Additionally, the case for buying diamonds as an investment has dwindled, Daga said. Diamonds were seen as an asset and inflation hedge over the last 50 years, he elaborated. But that investment rationale has largely faded as prices plunge.”
I don’t think diamonds have ever been an investment? You buy a wedding ring and if you wanted to turn around and sell it you might get (completely guestimating here) 40% of what you paid for it.
Maybe not a ring, but loose gem stones definitely were an investment due to their rarity.
Diamonds and other gem stones are going the way of aluminum. Aluminum used to be a rare metal until industrial smelting techniques were developed in the 19th century.
Diamonds have never been rare in modern times. They are controlled by cartels and kept in massive warehouses to keep the supply low artificially. Not rare enough to justify the absurd costs anyway.