Saith Reader Mike G (who sent me this little piece): “I just read this and thought it might interest you…”
Diamonds and the prestige that they’ve held for literal millennia are starting to slip. And the reason why is an interesting mix of cultural shifts, economics, and technology. Let’s break it down.
Since practically the beginning of time, diamonds have been sold as something bigger than a luxury product. They held this image and idea of permanence, romance, rarity, and status. Heck, even royalty. But now that image is slipping big time.
Natural diamond prices have fallen sharply, and lab-grown stones have dropped even harder. Just to put it in perspective, a natural diamond now costs 26% less than it did two years ago, and lab-grown diamonds are now 74% cheaper than in 2020.
That’s not just a small dip. That’s a massive fall from grace.
And of course, the company that’s being hit hardest is… [drum roll] my favorite corporation:
De Beers, the biggest name in diamonds, reported last month that it began 2024 with a huge $2bn stockpile of diamonds and had not managed to shift it by the year’s end. The company has cut production in its mines by 20%, and its owner, Anglo American, has put it up for sale.
Wait, wait… [pause to let my howls of scornful laughter die down]
So their $2 billion has magically turned to… errrr what’s the price of gravel, again?
Couldn’t happen to a nicer bunch of thuggish shitbirds, say I. And how I really feel about all this?
For my earlier rants about them, go here and here. Oh, and here.