Economy

Wouldn't Africa suffer from decrease demand of earth-mined diamonds?

How many Africans are really benefiting from the diamond trade?

Countries like Botswana and Namibia, with populations each under 2 million, who have benefited from the diamond trade are touted as examples, but should that overshadow the nearly 5 million that have been slaughtered, or compare to the thousands that are raped and murdered each day by rebels trading in conflict diamonds? Nearly 163 million people live in diamond producing African countries not yet living the dream realized in Botswana. Does it not seem concerning that over 30% of Botswana's GDP comes from diamonds, leaving them vulnerable to the downfalls of the "resource curse?" We're not saying that some success of the diamond trade should not be celebrated, but it shouldn't overshadow the much larger atrocities.

Consumers

Who decided that we should spend 2 to 3 month’s salary on an engagement ring?

Have you ever tried to re-sell a diamond?

The fact of the matter is, the value of an earth-mined diamond has been fueled by slick advertising campaigns and a carefully controlled supply chain. There is no question that the beauty of a diamond is rare. The thought that they are so rare- that demand far surpasses supply, thereby justifying higher value and prices- is merely a mirage. The history of the tightly controlled supply chain is well-established. Check out links on the research page to learn more.

Fools Gold?

Some industry leaders like Rapaport, a major trade source for diamond prices, are working towards standardization that would bring transparency to the pricing of diamonds. The diamond jewelry trade is fairly unified taking an adamant stance that diamonds cannot be considered a commodity, while by most definitions they can, the trade insists that each diamond is too unique* and that standardization cannot account for the diamonds symbolic value of "enduring love and commitment" (which they believe, since they spent millions in advertising to convince consumers it's true). The implied thought is that diamonds are nearly priceless and that their value would not hold should they be traded as a commodity. Anyone who's seen the price of gold, knows that commodities can still be valuable while being transparent in their pricing and at the same time offer resale value to the buyer. Under that scenario the value does not remain solely in the hands of the suppliers, but also now benefits the buyer who garners some resale value --- oh wait, maybe that's not the intended outcome.

Symbols of love are meaningful, however, as a consumers your emotions should guide you, not blind you. A recent class action law-suit ruling testifies to the misleading advertising and unfair pricing that marks the history of the diamond.

Hidden Costs

Could any metrics for determining a diamond's value account for impact on the environment, inequitably compensated diamond mining communities, or the tragedies supported by conflict diamonds that continue to find their way into the supply chain? Only you can determine what value you will place on a symbol of commitment, but you must ask yourself "at what cost?"

Indebted Generation

Now would be a good time to train a new generation that does not buy the "2 to 3 month salary" tradition as, according to www.creditcard.com, "Young Americans now have the second highest rate of bankruptcy, just after those aged 35 to 44. The rate among 25- to 34-year-olds increased between 1991 and 2001, indicating that this generation is more likely to file bankruptcy as young adults than were young boomers at the same age." And over 63% of Millenials (born in the early 80’s to early 2000’s) are in debt. The average debt is just over $16,000 each.

*Often referring to the "4 C's" - color, cut, clarity, and carat. Which are considered to be the standards by which consumers can make a fair purchase. Polish and symmetry are also important attributes of a diamond, but are not often attributes marketed to the average consumer. The fifth "C" is marketed by companies selling conflict-free diamonds. Leaving the environment and economic attributes, as described by The Greener Diamond's definition of a conflict diamond, unaccounted for.

Source:

http://www.marketwatch.com/News/Story/Story.aspx?guid={9376AEDE-CB8D-4101-AC8C-CF0015191A65}
http://www.usatoday.com/money/perfi/credit/2006-11-19-young-and-in-debt-cover_x.htm
http://www.edwardjayepstein.com/diamond/endnotes.htm
http://www.edwardjayepstein.com/diamond/chap20.htm

Africa

Wouldn't Africa suffer from a decreased demand of earth-mined diamonds?

How many Africans are really benefiting from the diamond trade?

Countries like Botswana and Namibia, with populations each under 2 million, who have benefited from the diamond trade are touted as examples, but should that overshadow the nearly 5 million that have been slaughtered, or compare to the thousands that are raped and murdered each day by rebels trading in conflict diamonds? Nearly 163 million people live in diamond producing African countries not yet living the dream realized in Botswana. Does it not seem concerning that over 30% of Botswana's GDP comes from diamonds, leaving them vulnerable to the downfalls of the "resource curse?" We're not saying that some success of the diamond trade should not be celebrated, but it shouldn't overshadow the much larger atrocities.