The thought of purchasing diamonds as an investment has crossed your mind. You should know a few things before shelling out a hefty sum for a flashy piece of diamond jewellery. According to Zerodha Co-founder Nikhil Kamath, “Without sugar-coating stuff, diamonds are a sham, don’t fall prey to well-thought-out marketing campaigns.” According to the study that Kamath shared on Twitter, diamonds are not as rare as gold.
Diamonds, one of the hardest naturally occurring substances on Earth, are used primarily for two purposes: ornamental jewellery and cutting tools. For all their worth, only around half of the diamonds mined are ever set into jewellery. De Beers deserves all the credit for portraying diamonds as the ideal stone for engagement rings. About 40% of all jewellery produced today is set with a polished diamond, the vast majority of which are engagement rings.
When asked why they spent thousands on a diamond, many individuals would say it was an investment but like any other commodity, diamonds are not a good investment. Selling a ring the day after buying it would likely get you just half of what you put into it. The value of diamonds as a long-term investment is low.
For a while, before De Beers uncovered a massive mine in South Africa, diamonds lived up to their billing as a rare and valuable commodity. De Beers hid the information because they believed prices to fall as a result of a surplus of supplies. As a result, the firm came up with the marketing gimmick that diamonds were the ultimate symbol of love that lasts forever. The only way for a guy to prove his loyalty was to dish out serious cash.
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Without sugar-coating stuff, diamonds are a sham, don’t fall prey to well-thought-out marketing campaigns.
— Nikhil Kamath (@nikhilkamathcio) November 24, 2022
Their method was really astute. They collaborated with N.W. Ayer, a New York advertising firm, to develop the slogan “a diamond is forever.” As a means of advertising, Ayer took use of both famous people and the rising popularity of movies. Diamonds were often given as symbols of everlasting love in Hollywood films. In advertising shots, actresses and models often wore flashy jewellery, especially diamonds.
De Beers’ monopoly on the diamond industry’s supply chain is eroding in the present day. Despite this, prices continue to grow since no new resources have been discovered lately, and demand for diamonds is booming in India and China.