The Myth of "Artificial Scarcity" In the Diamond Market - How Money Works

Anytime diamonds are mentioned on the internet it is invariably followed up by someone talking about how “the de-beers corporation has artificially created scarcity, diamonds are not rare at all”.

But this is “almost” entirely bullshit.

For starters the de-beers corporation only controls a fraction of the diamond market these days… but even putting that aside…

Diamonds are graded using the 4 c’s… Carat, Cut, Clarity and Color.

While it’s true that “diamond” as a material is extremely abundant in the earths surface, it is INCREDIBLY rare to find this NATURALLY occurring material WITHOUT NATURALLY occurring defects.

A 0.5 Carat diamond with some coloration and impurities, sure, that’s a dime a dozen, but these types of stones really aren’t “THAT” expensive especially when you consider the man-hours and precious metals that go into the rest of a ring.

A 4-carat flawless, colorless diamond, well that’s a one in billion in nature. That kind of diamond is rarer and more desirable than a PSA 10 first edition Charizard and it’s priced as such. Got it? Great I don’t want to hear any of you complaining on Reddit about how common diamonds are.

#Shorts

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