Diamonds may not be your best friends after all! Find out why
What if we tell you that Diamond, a symbol known to represent love, luxury and beauty, is actually a scam? Yes, diamonds are a scam. Diamonds are undoubtedly beautiful but they are NOT unbreakable, forever lasting or incredibly rare. They are just a rock!
The Diamond Scam
Are diamonds a scam? Yes, a diamond is just a rock that is the protagonist of the world’s biggest marketing scam. The diamond scam might just be the longest-running scam in history!
A marketing campaign SO big that it convinced millions of people across the globe to spend thousands and thousands of dollars on this rock that actually was of no value!
Insane, right? This diamond marketing campaign was so successful that it managed to change traditions across different cultures and transformed this rock into a deep emotion of Love.
However, your most adored gift and that valuable rock on your finger is just a story of lies, manipulative marketing and human gullibility.
Why Diamonds Are A Scam?
Before we dive deep into how this incredible diamond scam was pulled, let’s get some basic facts about diamonds straightened out.
1. Diamonds are believed to be rare when in reality they are abundant.
Are diamonds rare? Absolutely not. Contrary to popular belief, diamonds are in abundance. There are mines around the world filled with diamonds.
Diamonds were once considered to be rare when the only known diamond mines were in India and Brazil. But in 1870, British businessmen discovered massive diamond mines near South Africa’s Orange River. Since then, diamonds have not been rare. These British financiers now had a monopoly over the diamond supply in the world! They soon realised that the value of diamonds depended on their scarcity. So they formed one giant company: De Beers Consolidated Mines, and took control over the entire diamond industry. Their goal? Control both the supply and demand of diamonds. By withholding most of the diamonds and only releasing a careful stream of them into the rest of the world, DeBeers artificially inflated the price of diamonds creating an overstate value. Genius?
2. Diamonds are believed to last forever when in reality you can destroy them.
Contrary to popular belief, diamonds do break or chip off!
Diamonds may be the hardest naturally occurring substance on earth but they can still be smashed with a simple hammer.
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You may have heard the phrase “diamonds are forever” but are they really? Diamonds actually deteriorate and turn into graphite over time. In fact, the phrase “diamonds are forever” was a part of their great marketing scam.
In 1888, the major investors in the South African diamond mines merged their resources forming De Beers Consolidated Mines Limited and ruled the diamond industry all around the globe with different aliases. But in 1938, when America was going through the Great Depression, the value of diamonds was declining. It was a luxurious item that no one could afford to buy during that period resulting in the ultimate decline of the diamond’s value. The demand just wasn’t enough to meet the supply.
So De Beers Consolidated Mines now had to find a way to increase the demand for diamonds. And that is when the most successful marketing campaign of all time was born.
So how did they execute the plan?
De Beers collaborated with a major American advertising agency, N.W. Ayers, to reinvent the public perception of diamonds. They were given one task: to increase the demand for diamonds.
They marketed diamonds as a symbol of romance. They pushed the idea that diamonds were a gift of love and that the larger and finer the diamond, the greater the expression of love.
And a massive marketing campaign set in motion!
They didn’t advertise any name or brand. Their one and only goal was to create an association in the mind of the public between diamonds and romance.
They pushed this marketing campaign via all mediums like from radio, newspapers and magazines but their biggest target was Hollywood. The motion picture industry had emerged, and they took full advantage of it.
Ayers opened a Hollywood office and gave out diamonds to producers. And in return, the producers would favourably showcase the diamonds during the movie.
This is how the idea of a man surprising his woman with a diamond, symbolising love was born. This was some of the first product placement ever seen on television.
All celebrities wanted to wear these diamonds and many of them were rarely ever seen in public without their Debeers diamonds. These celebrity endorsements reinforced their campaign.
Ayers also managed to get Queen Elizabeth II to wear only diamonds which indirectly turned the royal family into sales agents. In American minds, the British royal family was the ultimate ideal of how to behave in the upper class. Diamonds came from British colonies, so the royal family was perfectly happy to work with Ayers.
Were they successful? You bet they were.
This De Beers scam was so huge and successful that it managed to increase sales by 55% in the United States by 1941.
But by now a lot of people got their hands on this precious, valuable stone. De Beers feared that if people began to sell second-hand diamonds back into the marketplace, prices would start to fall.
And this is how the popular phrase “diamonds are forever” was born.
It was another stroke of genius by N.W. Ayers. In 1948, they came up with this phrase to instil into the public the idea that you should never sell a diamond.
In the 1970s, Ayers did some extensive marketing research and concluded that though women didn’t like to ask for diamonds, they were still happy when they received them.
So from the 1970s onwards, Ayers created advertising that specifically emphasised the element of surprise in presenting a girl with a diamond ring.
And another stroke of genius was born.
De Beers invented a rule that a man should spend 2 months’ salary on an engagement ring.
This rule has nothing to do with the tradition of marriage. Ayers completely invented it as part of their marketing campaign. They didn’t give any specific amount of money that one should spend, but instead to go with 2 months salary. The genius of this suggestion is that it can be applied to anyone.
What’s a 2-month salary when it can buy something that will last a lifetime? Because don’t forget, A Diamond Is Forever. This is how the engagement ring scam was born.
The fact that diamonds aren’t actually rare has been a closely guarded secret in the industry for over 100 years. And even now, the diamond industry is still trying to perpetuate this lie.
So let’s ask this question again: Are diamonds a scam? I think by now you would have agreed that diamonds are a scam. But did you know this scam gave birth to more elaborate diamond scams?
Popular Diamond Scams
It is easy to get scammed while buying diamonds as we often lack technical knowledge and tend to trust the jewelers. However, these scammers are getting smarter and you don’t always need technical expertise to save yourself. Some even use cursed diamonds as a marketing strategy to sell diamonds.
Here are some of the most popular diamond scams you can be cautious about.
1. The Switcheroo Scam
One common scam is to switch the diamond with lesser quality and value after you have paid for a higher quality diamond. So how to avoid diamond switching? You can make sure you go to a trusted or reputed jeweler.
2. The Fake Diamond Scam
It’s common for some diamond fraudsters to present you with fake certificates with misrepresented quality and information about the diamond. This is what you have to take care of if you ever have the question “Is my diamond fake?”
3. Carat Total Weight scam
This is a prevalent scam in which the sellers usually round off the carat weight of a piece. For example, 0.69-carat will be rounded off to 0.75 carats. Jewelers also tend to give the total weight of the piece instead of the carat weight of the particular diamond.
These are some of the common diamond scams that you can be cautious about. Having said that, we are not just going to stop buying diamonds, right?
However, there are a few things you can keep in mind while you buy diamonds to ensure you get the best rock out there. Let’s understand how to look beyond that sparkle.
Top 5 Tips To Buy Diamonds Safely
If you want to know if the diamond you bought is real or fake, you can educate yourself about the 4Cs of diamonds: cut, clarity, color, and carat. Here are the top 5 tips for the safe buying of diamonds:
- Cut Quality: The cut of a diamond is the most important factor that affects its brilliance. A well-cut diamond is brighter and has a bigger carat size.
- Clarity: Clarity refers to the presence of any flaws or inclusions in the diamond. The higher the quality, the more pure the diamond.
- Color: Contrary to popular belief, a colourless diamond is more valuable. This color actually refers to the absence of color. Jewelers often try a pink diamond scam or a blue diamond scam to sell a low-quality piece for a higher price.
- Carat Weight: This refers to the size of the diamond. The bigger the diamond, the heavier the carat weight making the piece more valuable.
- Check Certificate: When buying diamonds, a certificate will give you an understanding of all the above points. It is like a blueprint for your diamond that tells you about the quality.
Needless to say, some brilliant marketing campaigns come and go every now and then, but De Beers’ marketing campaign for diamonds and the diamond industry scam is without a doubt The Greatest Marketing Scam Of All Time.
