Downfall of the diamond.
Marlboro, Apple, Coca-cola, and diamonds. All of these things have one thing in common. It is the same commonality among them that has kept them alive: MARKETING.
I am surprised that it took so long for diamonds to catch a dent in their reputation. The year 2020 really shook the diamond business and we saw many jewelry stores, even the ones in Dubai or ex-monopolies like De Beers take a step back and recoup.
"Diamonds are a girl's best friend"
A very smart marketing strategy. Just like Marlboro made its consumers feel "like a man", and apple made its consumers feel like a part of an incredible line of innovation.
I have been keeping an eye on diamonds for some time now. My dad had initially started his journey in business with diamonds and precious stones. Now, decades after he left that business behind, I am looking at precious stones as investments. However, I'm keeping diamonds very far away from myself.
The reason is simple. They are fool's gold. Unless we are talking about something super rare or with extraordinary color, diamonds are not going to hold value. A few diamonds, at best, could be stored as "collection pieces" and will be valuable. But I wouldn't bet on that.
They are simply not worth the prices. Not anymore. I would rather buy a working, good condition NSX, and stock it till its a classic. That car would have a better chance at giving me an excellent return compared to almost any GIA diamond out there.
Even when talking about looks, diamonds are not it anymore. There are plenty of shiny stones that can and factually look just like a natural diamond. I came across an article where a celebrity found she had a fake diamond in one of her jewelry for a few years and never noticed it until she sent it for a repair.
And that's the truth. There are plenty of synthetic stones in the market today that look and feel like a natural diamond unless it is in the hands of a pro.
Cubic sirconia, zircons, moissanites, saapphires, HPHTs, there are plenty of synthetics in the market. And so, the death of the diamonds is really coming from two things only: realization and synthetic.
More and more people are waking up to the false value attached to diamonds. These are just any other stones that will, most probably, not hold a lot of value in the near future unlike gold or maybe Lapiz Lazulis.
Moissanites are so well made that it can even beat a diamond tester. HPHTs are almost impossible to differentiate from naturally mined diamonds. That is because they are created in the exact same way and match the carbon structures of a natural diamond.
It is already incredibly difficult to cut even, let alone profit, from a "used" diamond. As the tech gets better, so will synthetic diamonds. Eventually, they will go down from half to a quarter to a decimal of the price they are at now. What happens to natural diamonds then? Will they still hold value?
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