Why Is This The Biggest Scam In History?

Why Diamonds Are A Big Scam? Stay alert if you are to give it to your Girlfriend

If you've ever seen an ad for a jewellery store you've probably heard them say that "Diamonds are forever" or "Diamonds Are a Girl's Best Friend". 

And indeed, when it comes to marriage proposals, nothing is more iconic than the proposer getting down on one knee and presenting a diamond engagement ring to their sweetheart. 

But why are these shiny little rocks not only expensive but also so revered in our culture? 

What if I were to tell you that the whole thing was just one big marketing scam?

Today, we will be taking a deep dive into the jewellery industry and answering the question of why we care so much about diamonds. 

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So, what makes diamonds so special?

Diamond is loved and treasured by people all over the world, but many still wonder what makes it different from the rest.

After all, a diamond is just a glittery little chunk of carbon. And yet, somehow this sparkly mineral has moved on to become the official symbol of matrimonial union: According to data gathered by Jewelry Industry Research Industry head Kenneth Gassman, 75 per cent of brides in the United States wear a diamond engagement ring. It's such a ubiquitous part of the traditions surrounding marriage that hardly anyone ever seems to question it. 

Well, we hate to be the bearer of bad news, but if you thought diamonds were made into the symbol of true love because they're rare and attractive you'd be sadly mistaken in fact despite the often outrageous price tag that comes attached to them diamonds aren't even particularly rare. 

The truth as to why diamonds have gone on to become the official symbol of marriage is far more cynical and it has more to do with propaganda and sneaky marketing tactics than it has to do with love or beauty. 

Edward Jay Epstein

In his article in the February 1982 issue of The Atlantic, journalist Edward Jay Epstein wrote about the concept of “The diamond invention”; in other words, 'The belief that diamonds are rare, valuable, and a must-have status symbol, is entirely a work of fiction, dreamed up by diamond manufacturers as a way to drum up business.

The creation of the diamond invention can be traced back to the origins of a corporation that just so happened to hold a total monopoly over the diamond industry. Until the early 21st century De Beers Group.

Epstein’s research on the diamond market reaches back to South Africa in the 19th century. In 1870, British businessmen stumbled across a massive diamond mine near South Africa’s Orange River and quickly wasted no time raking in the gems hand over fist. 

But now, they were almost literally swimming in diamonds from their mining operation. 

The British financiers found themselves faced with a new dilemma 

How do they make the most of their discovery without flooding the market? 

Until now, diamonds had been harvested in relatively small batches in India and Brazil, accounting for only about a few pounds a year in terms of worldwide gem production. Diamonds did not have much intrinsic value on their own and the reason they had been deemed valuable at all was almost exclusively due to their sheer scarcity. 

The discovery of the South African mines threatened to completely topple the assumed value of diamonds by shifting the balance of supply and demand, and at best diamonds would become reclassified as only semiprecious gems. 

So, how was the financier able to make use of their minds without completely devaluing the price of the diamonds they were harvesting

By pretending the diamonds were still scarce of course. 😂

In 1888 the major investors of the South African diamond mines merged their resources forming a cartel known as 'De Beers consolidated mines Limited. 

Preference Share of the De Beers Consolidated Mines Ltd. issued 1. March 1902

De Beers was formed to monopolize and control the production of diamonds while tricking consumers into believing that the diamonds they sold were still rare and valuable. And at this point, I’m sure it would come as no surprise if we told you that they succeeded. 

De Beers as a company took on several different pseudonyms around the world, whether as a diamond trading company in England, a syndicate in Israel or a diamond development corporation in Africa.

All the while, De Beers in its many forms perpetuated the illusion of diamonds as something rare enough to be worth the inflated price tag, and for most of the 20th Century, De Beers enjoyed a lofty position as the undisputed king of the diamond industry.

Okay so now you know why diamonds are so expensive.

But how did they become the symbol of marriage that they are today?

While it might feel like the sentiment that diamonds are forever, has been around for well 'forever'. The widely accepted tradition of the diamond engagement ring has only been in popular practice for less than a century. 

In 1938 America was still on the thrones of the Great Depression at around this time diamonds were considered a luxurious and superfluous symbol of status reserved only for the extremely wealthy. 

After all with money being as tight as it was for the average Depression-era American, why would anyone want to spend their hard-earned pay on some shiny rocks? When that money could instead be put towards something more practical like a car or a washing machine

If De Beers wanted to keep the demand for diamonds high they needed to come up with a new marketing strategy and fast 

So what new angle did they come up with to push those glittery carbon crystals? 

You guessed it... "MARRIAGE". So much for money can't buy me love huh?😏 

Engagement Ring vs. Wedding Ring

De Beers collaborated with N.W. Ayer a major American advertising agency to reinvent the public perception of diamonds by making them into a symbol of romance a massive marketing campaign was set into motion as diamond rings were pushed not only via radio newspapers and magazines but also through celebrity endorsements and product placement in the newly emerged motion picture industry. 

And it worked, by 1941 diamond sales in the US had already shot up by 55 per cent. In 1948 a copywriter for N.W. Ayer coined the phrase 

A diamond is forever 

And the rest as they say is history 

So there you have it, how a group of British investors were able to turn a surplus of glittery stones in South Africa into one of the biggest and most lucrative advertising campaigns in all of history and collectively tricked three-quarters of American newlyweds into buying their jewellery for the better part of a century. 

Well, these days De Beers has been pushed off its throne as the monopolist of the diamond industry. presently only selling about 35% of the world's rough diamond production. Even so, the 131-year-old diamond cartel has successfully turned their overpriced rocks into an instantly recognizable symbol of not only wealth but also love and marital bliss. And chances are the public perception of diamonds as their go-to engagement gift of choice won't be changing anytime soon. Huh I guess diamonds really are forever behind all it's not the reason we expected 

So, what do you think about the diamond craze are there any facts in this video that you feel we might have overlooked control the conversation going in the comments section below and don't forget to like and share this video if you found it interesting.