What do you think about diamonds?

The talk about the qualities of money and a recent documentary I saw called "The Diamond Empire" (watch for free here) led me to a question for the board: What do you think about diamonds?

I think most informed people would agree that the diamond trade is run by a monopolistic cartel (DeBeers/Anglo-American) that controls the price, supply, and even the demand for diamonds through their marketing campaigns. An unhappy by-product of this monopoly has been the blood diamond/conflict diamond phenomenon. Diamonds have no intrinsic rarity; there are plenty of them around the world, and their price is in no way rationally correlated to their scarcity. By creating a "myth," DeBeers has made people willing to pay far more for diamonds than they are really worth. Their is also something really shady about appealing to peoples' romantic sensibilities -- we all want to impress the girl -- to screw them out of their hard-earned money.

So, what do you think? Do you like them aesthetically, or would you prefer other gemstones/cash/home appliances/actual emotional sincerity? Do you want to receive them/buy them/give them? Is the same desired effect achieved by making another kind of outsized "sacrifice," whether monetary or otherwise? What about the tradition of the diamond engagment ring, eternity ring, 25th anniversary diamond, etc.?

I have my own views on the subject that I will weigh in on later.

I am female, and I have never understood the trinket/wampum mentality behind gold and diamonds. I do not see any inherent worth in them--they don't DO anything! I figured if they've created fake gems that can fool a jeweler, what's the point in shelling out top dollar for something that may or may not be the real thing?

I do have an engagement solitaire, but the diamond got pulled out of the setting when I caught it in the door of our poolhouse, and I've put off replacing the 4-prong setting with a 5-prong until the price of gold goes down some. I have slender fingers, so a 3-stone anniversary ring is kind of big for my hand and I wouldn't care for one.

I prefer spending my money on real estate, personally.

Quote: FarFromVegas

I prefer spending my money on real estate, personally.

I asked my wife what she wanted for her birthday this year and she said, "Real estate." And judging from the types of properties (even investment) that she likes, it would be cheaper to get her a huge diamond on a beautiful necklace or something.

Back to the original question, I do think that diamonds are beautiful to look at. Unfortunately, because of what I know about their actual worth, it is very difficult for me to spend the money on them. Fortunately, my wife doesn't think much for diamonds. She does like other stones, though... and real estate.

Quote: teddys

So, what do you think? Do you like them aesthetically, or would you prefer other gemstones/cash/home appliances/actual emotional sincerity? Do you want to receive them/buy them/give them? Is the same desired effect achieved by making another kind of outsized "sacrifice," whether monetary or otherwise? What about the tradition of the diamond engagment ring, eternity ring, 25th anniversary diamond, etc.?

Diamonds do have some industrial uses. I do not see the reason for wearing them as jewelry. But then again, I hate wearing jewelry of any kind, except a nice watch. I bought a class ring in high school, wore it twice. Maybe I will take it to Gold and Silver Pawn and be offered $5 for it?

DeBeers ran the most successfull marketing campaign in the world when they created the 'diamond engagement ring'. This is not an old long standing tradition but was created by DeBeers. How many newly engaged gals in any western country would allow their bethrothed to get away without buying them a diamond.

Diamonds do have tremendous industrial value though. Not the big shiny ones but the small ugly ones that are used for cutting all kinds of material that we would have great difficulty cutting otherwise

Of course, diamonds are forever*, but that's hardly a reason to make them into gigantic space lasers.

On a serious point, synthetic diamond is becoming highly important industrially. There are loudspeakers now made of diamond. The process involves placing a base mold into carbon-containing vapor at very specific conditions, where it settles and forms diamond.

Other than that, yeah, pretty and shiny, but not much more than CDs.



*Unless they fall out of the ring, get lost, burnt, broken, or otherwise damaged.

I bought my wife her engagement ring when we were 21 and 20. It is a very basic 1 karat princess cut diamond. With that, and the wedding band it was the only piece of jewelry I've ever bought her and she likes it that way.

I don't like diamonds much because of the industry, my wife doesn't like them much because she doesn't wear a lot jewelry. It works great for us, for a nice gift she much prefers having me green-light and purse and/or shoe shopping spree. That is an addiction I don't think she can kick.

Quote: AZDuffman

Diamonds do have some industrial uses. I do not see the reason for wearing them as jewelry. But then again, I hate wearing jewelry of any kind, except a nice watch. I bought a class ring in high school, wore it twice. Maybe I will take it to Gold and Silver Pawn and be offered $5 for it?

Diamonds are ridiculous. Just another case of the ignorant masses being fleeced by those in power.

Here's a fascinating article on the history of diamond marketing.

The value of diamonds in the real world is about as rational as the value of diamonds with respect to clubs, hearts and spades.

The expression Diamonds Are A Girl's Best Friend is perhaps quite true simply because society accepts diamonds as a store of value. Even if the economy tanks, you can be sure DeBeers will hold new diamonds off the market to stabilize the price of used diamonds.

As always, diamonds are more portable than real estate but usually don't appreciate as well as real estate.

Jewelry? An adornment for a trophy wife ... and for chippies who want to become trophy wives.

Its like a Patek Phillipe watch or a Rolex watch: if you are close enough to the wearer to find out if its real, you are already too close to danger. Same thing with a diamond. If you can't put a loupe to your eye and find out if its real, then you should ask yourself why you think it might be fake?

Investments? Education, real estate, ... etc. I can understand. A bit of very hard carbon around your neck? Try coal. See if that impresses anyone.

Quote: FleaStiff

Investments? Education, real estate, ... etc. I can understand. A bit of very hard carbon around your neck? Try coal. See if that impresses anyone.

http://www.djantiques.com/cat.php?id=99

And you thought it doesn't exist?

My diamond view mirrors my gold view. At least diamonds have a use. I tried to gently explain my views to my then girlfriend as we were ring shopping, who of course wished to hear nothing about it. Sure they're pretty, and it is kind of cool how some dirty carbon can become clear and sparkly after a few million years, but it ain't $5,000-for-a-tic-tac-sized-piece cool. Makes no sense to me, my stainless steel wedding ring does me just fine.

Quote: Face

My diamond view mirrors my gold view. At least diamonds have a use.

Well, so does gold... Every quality connector has to be gold-plated, gold is the best heat reflector, it's a part of the best electrical alloys, it's got countless industrial and military uses.

It's almost as if our ancestors somehow instinctively managed to recognize industrially valuable materials. Of course, they missed platinum, so any theory other than coincidence is automatically disproved.

You need a lot more or a lot larger diamonds to enhance how you look. A single one-carat doesn't look anything special other than very close up.

Diamonds enhance how wealthy you are perceived to be, by people who know how much diamonds cost and can gauge their size and grade.