Have You Ever Tried to Sell a Diamond? (1982)
21 days ago
- Diamonds were once abundant after 1870 discoveries, but De Beers formed a cartel in 1888 to control supply and create an illusion of scarcity.
- De Beers dominated the global diamond trade for most of the 20th century by controlling mines, distribution, and prices.
- To manage demand, De Beers hired N.W. Ayer in 1938 to link diamonds with romance, courtship, and marriage, especially in the United States.
- The campaign invented the slogan 'A Diamond Is Forever' and used movies, celebrities, royalty, and fashion to make diamonds a psychological necessity.
- Advertising successfully made diamond engagement rings a social norm, dramatically increasing U.S. sales and later creating a huge market in Japan.
- De Beers adapted strategies to sell smaller diamonds, including the 'eternity ring,' to absorb Soviet production and maintain market control.
- Reselling diamonds is difficult; consumers face steep markups and low buyback offers, undermining the idea of diamonds as safe investments.
- In the late 1970s, speculative 'investment diamonds' led to fraud and price instability, threatening the cartel's control.
- Israeli diamond dealers stockpiled diamonds with bank financing, causing a crisis when prices collapsed and banks were left with massive inventories.
- New diamond discoveries in Australia and Zaire's departure from the cartel now threaten De Beers's monopoly and the entire diamond invention.