Fantastic article from "The Atlantic" on how the diamond cartels formed and why all that shiny shiny bling bling is so valuable. (Added: This is an AMAZINg article. Highly recommended. Long articlke but well worth the read!)
http://www.theatlantic.com/doc/198202/diamond
Here's a snippet:
http://www.theatlantic.com/doc/198202/diamond
Here's a snippet:
Except for those few stones that have been destroyed, every diamond that has been found and cut into a jewel still exists today and is literally in the public's hands. Some hundred million women wear diamonds, while millions of others keep them in safe-deposit boxes or strongboxes as family heirlooms. It is conservatively estimated that the public holds more than 500 million carats of gem diamonds, which is more than fifty times the number of gem diamonds produced by the diamond cartel in any given year. Since the quantity of diamonds needed for engagement rings and other jewelry each year is satisfied by the production from the world's mines, this half-billion-carat supply of diamonds must be prevented from ever being put on the market. The moment a significant portion of the public begins selling diamonds from this inventory, the price of diamonds cannot be sustained. For the diamond invention to survive, the public must be inhibited from ever parting with its diamonds.
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