The Truth About The Diamond Industry
Blood From Stones
Most of us blithely take for granted the resources available to us in our daily lives. We don't give much thought to the brutality, suffering and the real price for this seemingly innocent stone for millions of African people and others who live on the other end of the equation.
We at KinetIQue think you should be aware of the reality.
Diamonds are thought to be the makings of heirlooms, to pass down through the generations with ever appreciating value. The desired gift for engagements, anniversaries, graduations, or simply an expression of love.
But nothing could be further than the truth.
It is a very secret and unromantic world, one that is dominated and controlled by a handful of mighty corporations.
There are many handlers of a diamond, before it reaches the high street and each one of them adds their cost to the final product. During the diamonds trip from the ground to your finger there are many hands they have to pass through. Many of which, never actually touch the diamonds themselves.
The first to get paid is the miners and mining company. In South Africa where most diamonds come from, diamond mines are controlled.
The sole purpose in setting up this operation was to control the mining and sale of diamonds. This has had the desired effect of the market not becoming flooded with an abundance of inexpensive diamonds.
After the stone has been taken from the mine it has to be cleaned up. During this process it is cut and polished to look more like a diamond than a shiny rock. Then it is shipped to diamond markets around the world.
There are different ways to get a piece of the pie. There are corrupt government officials to be paid off. Some of the countries in which diamonds are mined changed governments often due to war and rebellions. Some are good and some are not. They can take their part of the pie legally with taxes.
Then there are smugglers, they can offer cheaper diamonds because they bypass the legal routes and don't pay the taxes and tariffs that legitimate companies have to.
Manipulating The Consumer.
Consumers are clearly disadvantaged over the lack of transparency in the pricing structure of diamonds, which the diamond industry fiercely protects.
Clever marketing has convinced consumers into believing that diamonds are priceless and are too unique to be valued like a commodity. This has had the desired effect, that we continue to buy diamonds at heavily inflated prices.
But we should never sell them.
Ultimately, that leaves consumers with stones worth a fraction of what they paid for them.
The diamond invention is far more than a monopoly for fixing diamond prices;
It is a mechanism for converting tiny crystals of carbon into universally recognised tokens of wealth, power, and romance.
Perhaps it's better to question the true value of love. The most sentimental of things don't cost a fortune, it's the value you put on them as individuals that gives an object its worth.
You won't be able to sell a diamond ring for more than you pay for it. And the reason is simple: with diamonds, you buy at retail and sell at wholesale.
That is, if you can sell it at all.
Who decided that we should spend 3 to 4 months’ salary on an engagement ring?
The first thing we have all noticed when we are looking at purchasing a diamond is how expensive they are.
You have to wonder why it costs so much for a shiny rock.
Diamonds are a luxury that many of us can’t afford. The extortionate cost of diamonds is due to ruthless misleading marketing, combined with a manipulated supply chain.
"A diamond is a precious commodity because everyone thinks it is. The geological equivalent of a bouquet of red roses, elegant and alluring, a symbol of romance, but ultimately, pretty ordinary".
Ulrich Boser - Author
Not at all. Actually, diamonds are incredibly common.
Approximately 140,000,000 carats (28,000 kg) of diamonds are mined annually, with a total value of nearly £6 billion. The perception that diamonds are rare and that demand far outweighs supply - thereby justifying inflated prices - is just a mirage.
Controversy Affects Value
"Diamonds are essentially worth nothing,"
Says Mordechai Rapaport, whose Rapaport Group Price List is the industry standard.
“It's all about what they signify,”
By that logic, he adds:
"When a guy gives a woman a diamond and someone was killed for it, it is not worth anything."
SOURCE-CNN MONEY, FORTUNE
Ever wondered how much your diamond really cost?
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