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[–] d0c5 0 points 40 points (+40|-0) ago  (edited ago)

They own all the mines and they set the price by controlling the market. It's just a rock.

Edit :- Also massive advertising.

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[–] totallyforwork 0 points 45 points (+45|-0) ago  (edited ago)

Advertising was the root of it whole industry. All this happened after they took control of the mines in the late 1800s.

Even through the great depression they were trying to make a diamond ring a staple of american marriage. They hired a NY based ad agency to put images of women with diamonds everywhere. Fast forward and Now its an expectation to be given a diamond ring. So they then , through marketing, start this whole " the man should save up xx# of months of salary for the ring".

Anyway, in economics, the price of something is where the supply and demand intersect (think x and y axis with demand sloping downward and supply sloping upward).

When there is a lot of something, the price falls because its not that special. When something is rare, the price is higher. There are TONs of diamonds. You can make diamonds, there are machines that use diamonds to cut, it's not special. So what they do is they mine all these diamonds and lock them up. Only releasing some at particular times. This decreases supply, marketing increases demand, and makes the price higher.

Diamonds really are just carbon that was subjected to heat and pressure in reality. You could do the same with charcoal.

I'm typing on my phone so this is pretty condensed and disorganized. A good movie scene is Blood Diamonds with Leonardo DiCaprio. Don't read below if you don't want spoilers.

So many people are killed for this large and unique pink rock that the diamond company wants and when they get it, it goes in a vault with all the rest of them. Good movie IMO.

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[–] d0c5 0 points 4 points (+4|-0) ago  (edited ago)

Thats what I'm saying bro.

[–] [deleted] 0 points 14 points (+14|-0) ago 

[Deleted]

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[–] HorseSizedDuck 0 points 6 points (+6|-0) ago 

Moissanite is freaking awesome. It's one of the hardest substances known to man. It was discovered in a meteor crater. It turns bright green when you heat it up with a torch, then fades back to white when it cools. Pretty much one of my favorite gemstones.

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[–] d0c5 0 points 4 points (+4|-0) ago 

I have never seen this word before. I'm just off for a quick study I'll get back to you on that.

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[–] Sariel 0 points 4 points (+4|-0) ago 

Well they don't own all the mines, but between them and the Russian big players, they have indeed controlled the market for centuries.

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[–] d0c5 0 points 2 points (+2|-0) ago 

Indeed!

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[–] BoringSupreez 0 points 3 points (+3|-0) ago 

Does this include rubies, sapphires, emeralds, etc? Because I'm pretty sure those have been valuable for thousands of years.