Wired’s cover story this month is terrific. It’s about synthetic diamonds, and how they threaten the existing diamond industry, specifically, the de Beers cartel.
At the risk of alienating certain recently engaged friends (congratulations, by the way), I gotta say this about threatening de Beers… It’s about damn time.
Diamonds are overrated. No, I mean it. Sure, they’re pretty. I’m female, and I like sparkly things as much as the next girl. But let’s look at this practically.
The “tradition” of the diamond engagement ring is not much of a tradition at all- it was manufactured by the de Beers marketing department during the 20th century. Even into the 50s, diamonds weren’t all that commonplace in engagement rings. Previously, other stones had been used because they were rarer.
Diamonds aren’t really all that rare. There are tons of them in some parts of the world. De Beers has created a scarcity where a glut existed by buying up most of the world’s diamonds and tightly controlling the supply.
Basically, de Beers has managed to increase demand through the myth of the diamond engagement ring tradition, and the myth that diamonds are rare and precious, while simultaneously reducing the supply, further increasing the price. And none of that even touches on the questions of “blood diamonds,” sold by African rebels to fund their systematic genocide of other Africans, or de Beers’ labor practices, etc.
At best, this is shady marketing, but even if you adopt a completely laissez-faire position on it (after all, consumers are still doing the demanding, and are still legally buying diamonds), it’s a great day for capitalism when not one, but TWO companies find a way to make the same product, for cheaper, and bring better products at better prices to the consumer. In fact, everyone BUT de Beers should be cheering for manufactured diamonds. Hooray for technology.