Diamond is one of the most sought after and expensive minerals.
Ask any person what the most expensive stones in the world, and he did not hesitate to answer that diamonds. But few people know why diamonds are so expensive.
At first glance, the answer is simple: diamonds have unique properties, they are very solid, but also very rare. So, that’s just emeralds, rubies and sapphires are even more rare, and people consider them second-class citizens. Why did this happen?
1. Fabulous price of diamonds is a huge Scam! In 1866 in South Africa was discovered huge reserves of precious stones. Every day in the Kimberley region day and night, worked up to 30 thousand miners. From 1871 to 1914, they produced approximately 2 722 tons of diamonds!
2. The market was flooded with diamonds, and their value began to plummet. It is unknown how long would be depreciated by these stones, if it is not undertaken, Cecil Rhodes, the founder of a monopoly in the diamond market — De Beers.
3. Cecil Rhodes came to South Africa in 1870, and also experienced all the delights of the diamond rush. In search of jewels he failed to achieve any significant success, but he founded the company, which catered to other miners.
4. Mr. Rhodes began selling the miners tools and products, as well as organizing pumping water from the mines, having bought the region’s first steam pump. A fee for their services he took the diamonds, as well as shares and shares in the profits.
5. This business was so profitable that by 1883, Cecil Rhodes took control of all the field Kimberly. And after 5 years he controlled 90 percent of the world production of diamonds!
6. Becoming a monopoly, De Beers stopped falling prices, setting the diamonds own a Dachshund. However, at first the cost was adequate. Only half a century the price of diamonds began to grow by leaps and bounds.
7. Ironically, higher prices have contributed to the difficulties. By the mid-twentieth century of the company’s monopoly began to have problems: the volume of diamond sales gradually fell. People prefer colored emeralds, rubies and sapphires. In response, De Beers launched an unprecedented advertising campaign, whose slogan was the slogan “Diamonds are forever”.
8. Diamonds began to be positioned solely as a symbol of love, high emotions, luxury and wealth, and their price skyrocketed. In an advertising Agency initially acknowledged that to achieve success will be very difficult, because the people of De Beers practically force people to buy absurdly expensive stone in order to make an offer!
9. However, the company spared no money on advertising. From year to year buyers convinced of the uniqueness of diamonds, to justify the inflated cost. By the way, the principle of formation of the price of the diamond was worded as follows: “Desirable stone should not be less than the average wage for three months.” This formula still works, and the average price of a good diamond is now about $ 7,000.
10. At the time, the face of the propaganda of diamonds were Marilyn Monroe and Sean Connery, who after a break again agreed to play the role of James bond in “Diamonds are forever”! Yes, the seventh movie about the British superspy was generously sponsored by De Beers.
11. As a result of mass brainwashing several generations imbibed with mother’s milk that diamonds are the most expensive stones in the world. And without advertising they would not have been cheap and stayed in the price, but the lion’s share of the cost is status.
12. Well, every item is worth exactly as much as he willing to pay. If rich people willing to spend hundreds of millions of dollars on paintings by Jackson Pollock, which represent a bunch of colored blobs, why the gems should be cheap?
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