"A diamond is forever," but perhaps not for the increasing number of consumers who are spurning the gemstone for its lab-grown counterparts and gold.
  • LesserAbe@lemmy.worldEnglish
    322·
    5 months ago

    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.

    • HobbitFoot @thelemmy.clubEnglish
      62·
      5 months ago

      I don’t think diamonds have ever been an investment?

      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.

      • Pfeffy@lemmy.worldEnglish
        5·
        5 months ago

        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.

        De Beers maintained a monopolistic hold over the diamond market for several decades, controlling 75-85% of the diamond rough supply. They carefully released only enough rough diamonds to satisfy then-current demand, while continually adjusting the degree of rough diamond availability. Of course, this made prices escalate and reinforced the perception of diamond’s rarity. De Beers actually mined considerably more rough diamonds than they sold. They maintained a large warehouse of uncut diamonds in London. As a result, they weren’t allowed to do business in the United States and a few other countries.

        • international gem society