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History of the Diamond Marketing Campaign

posted 4 years ago in Rings
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    Blushing bee
    sassygirl    June 28, 2008   Ottawa

    An interesting read! http://www.theatlantic.com/doc/198202/diamond

    Have you ever tried to sell a diamond?

    The diamond invention—the creation of the idea that diamonds are rare and valuable, and are essential signs of esteem—is a relatively recent development in the history of the diamond trade. Until the late nineteenth century, diamonds were found only in a few riverbeds in India and in the jungles of Brazil, and the entire world production of gem diamonds amounted to a few pounds a year. In 1870, however, huge diamond mines were discovered near the Orange River, in South Africa, where diamonds were soon being scooped out by the ton. Suddenly, the market was deluged with diamonds. The British financiers who had organized the South African mines quickly realized that their investment was endangered; diamonds had little intrinsic value—and their price depended almost entirely on their scarcity. The financiers feared that when new mines were developed in South Africa, diamonds would become at best only semiprecious gems. The major investors in the diamond mines realized that they had no alternative but to merge their interests into a single entity that would be powerful enough to control production and perpetuate the illusion of scarcity of diamonds. The instrument they created, in 1888, was called De Beers Consolidated Mines, Ltd., incorporated in South Africa. As De Beers took control of all aspects of the world diamond trade, it assumed many forms. In London, it operated under the innocuous name of the Diamond Trading Company. In Israel, it was known as "The Syndicate." In Europe, it was called the "C.S.O." -- initials referring to the Central Selling Organization, which was an arm of the Diamond Trading Company. And in black Africa, it disguised its South African origins under subsidiaries with names like Diamond Development Corporation and Mining Services, Inc. At its height -- for most of this century -- it not only either directly owned or controlled all the diamond mines in southern Africa but also owned diamond trading companies in England, Portugal, Israel, Belgium, Holland, and Switzerland.

    More here: http://www.theatlantic.com/doc/198202/diamond

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    1. History of the Diamond Marketing Campaign :  wedding Img DSC05318.JPG (82.2 KB, 53 downloads) 3 years old
     
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    Sugar bee
    suzanno    7/12/08   Richland, WA

    Too true.  Its a huge racket.  The price of diamonds is still almost completely artificially controlled.  Any white diamond much under 2 ct really has very little intrinsic value.  Only the colored ones (yellow, pink, blue) are actually rare.  The "new market" for cognac and chocolate really cracks me up - those used to be only industrial diamonds, but now we're supposed to thing they are rare and fabulous.  The one thing I absolutely won't wear is pave - most stones of that size are cut by child labor in India and Pakistan.  IMO that's just as bad, or worse, than buying conflict stones.

    De Beers actually invented the concept of the diamond engagement ring as a marketing tool.  Prior to their control of the market, most e-rings were colored stones (generally sapphire, which are also a hard stone that wears fairly well).

     
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    Blushing bee
    swp02138    September 19, 2008   Los Angeles

    I'd read that article a couple of years ago and it helped cement my decision not to get a diamond engagment ring.  In addition to the blood diamond issue, I hate feeling manipulated. Of course, some could argue that the institution of marriage and the mere concept of the engagement ring, regardless of the stone used, is really a result of social manipulation, but mine's just so pretty!  =)

     
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    Blushing bee
    MissBanana    March 2008   Boulder, CO

    Are you planning on wearing a white wedding dress?  Do you own an ipod?  Do you wear makeup?  By your definition, these are all the result of "social manipulation". Any tradition or norm you observe will come from external sources.  That isn't inherently bad (or good), it is completely subject to your values and the circumstances surrounding your choice.  (I'm not wearing a white wedding dress, I love my ipod and engagement ring because those decisions are in line with my values).

    If you don't value a diamond enough to pay what they cost, by all means don't pay it.  But don't think that you're avoiding "social manipulation".  

     
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    Blushing bee
    swp02138    September 19, 2008   Los Angeles

    Miss Banana - I was trying to acknowledge the point you make in my last comment.  I apologize if that wasn't clear.

    Attachments

    1. History of the Diamond Marketing Campaign :  wedding Img piper_gown.jpg (11.2 KB, 103 downloads) 3 years old
    2. History of the Diamond Marketing Campaign :  wedding Img piper_gown.jpg (11.2 KB, 43 downloads) 3 years old
     
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    Sugar bee
    suzanno    7/12/08   Richland, WA

    I don't think its purely a money issue for everyone, MissBanana.  And clearly you can't live in society without being influenced.  And you can't make a stand on every issue.  But if you decide not to get a conflict diamond, or not to get a diamond at all, or to eat organic, or not wear leather, or whatever... you do get to explain your thought process, and it might be informative to others even if it doesn't influence their decisions in any way.  And you do get to have a position on some issues and not on others without being called some kind of hypocrite. Not every consumer decision needs to be politically based, although its never a bad idea to understand the politics your dollars are supporting.

    For the record: I am for humane animal treatment and slaughter, and I do eat meat and wear leather.  I buy organic when I can.  I have an iPod only because my sister bought it for me, but I do love it.  I do use cosmetics, but only products not tested on animals.  I did not intend to have a white wedding dress (for no political reason, just because I don't generally look good in white), but fell in love with and bought a lovely dress in a sort of vanilla color.  My diamond is yellow, and Australian.

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    1. History of the Diamond Marketing Campaign :  wedding Img dress.jpg (8.9 KB, 56 downloads) 3 years old
     

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