Brief origin of our devotion to diamonds

 We value more what we like when it is scarce or about to be. From a lover who decides to leave, water during the Mediterranean summer, now gas... In economic jargon, it is said that ‘assets that are really scarce have value’. For example, bitcoin, gold, diamonds... Wait, diamonds? Until the 19^th century, in fact, they were a rarity only worthy of nobles and kings. That all changed in 1870, when abundant diamond mines were discovered in South Africa, exploding supply and making them cheaper to buy. At least that’s how it was at first, since to control supply, and thus prevent something that was no longer so scarce from devaluing (you know, abundance is not cool), 90% of the world’s extraction and distribution of diamonds remained under a monopoly of a small group of entrepreneurs at the beginning of the 20th century (the De Beers firm).

In addition to controlling supply to prevent prices from falling, they also invested in increasing the demand for diamonds. And this is where marketing comes in. How to make people want to buy diamonds? At that time Europe was devastated after World War II, so the main target was the United States. De Beers firm launched its famous slogan ‘A Diamond is Forever’ in 1947. Yes, it was a monopoly company that modelled consumer behaviour based on studies and psychosocial tests, finally creating the custom of giving engagement rings. They shaped the feeling in people that you have to buy diamond jewellery to show the love and devotion that the couple have for each other. The idea that the union in marriage is forever, well deserves a diamond that will last eternally. The correct thing, therefore, is to sacrifice months of salary to buy diamonds because that is what a company that controlled the price of some stones at convenience considers it for years. Result: child labour in Africa, especially in South Africa and the Congo, increased significantly in coltan and diamond mines to feed Westerners with phones and ceremonious whims. The ad worked very well.

 

Guerrilla groups in Africa also join in the extraction and sale of diamonds. They use the billions of dollars from the sale to buy weapons and finance wars. They are the so-called 'conflict diamonds' or 'blood diamonds' (related to the carnage of Sierra Leone, Angola, Liberia, the Democratic Republic of the Congo and the Central African Republic).