Diamonds - A Girl's Best Friend?

Did you know that diamonds aren't rare, in fact, they are quite plentiful.  The ten largest diamond mines in the world contain more than one billion carats of recoverable diamonds.  Russia is home to half of the world's biggest diamond mines, while Botswana is home to the largest diamond producing mine, Orapa.  

If diamonds are plentiful, why are they so expensive?  You might think it's supply and demand, but you'd be wrong.  Diamonds have been controlled since the late 1920s by De Beers. De Beers is a cartel that is responsible for artificially limiting the supply of diamonds in order to manipulate the market.  They're responsible for a marketing campaign that turned into a tradition, you know, the two month salary rule.  Their infamous ad campaign in the 1980s coined the phrase "Diamonds are Forever" is now being revived for millennial buyers.  The campaign was the creation of De Beers' ad woman, Peggy Olson, and may be a contributing factor for why diamonds have a terrible resale value.

If you're shopping for a diamond ring, but you're concerned about the issues around conflict diamonds, you should consider doing your own research.  There is plenty of information out there.  In the mean time, I'd like to give you a little information to get you started.

The flow of Conflict Diamonds originated mainly from Sierra Leone, Angola, Democratic Republic of Congo, Liberia and Ivory Coast. The United Nations and other groups have developed a government certification procedure called the “Kimberly Process”.   This process requires each nation to certify that all rough diamond exports are produced through legitimate mining and sales activity. All rough diamonds exported from these nations are to be accompanied by certificates. These certificates state that the diamonds were produced, sold and exported through legitimate channels. The certification process accounts for all rough diamonds, through every step of their movement, from mine to retail sale. Retail customers buying a cut diamond are encouraged to insist upon a sales receipt that documents that their diamond originated from a conflict free source.

If you're hesitant about buying a diamond based on the information I've provided, consider an alternative.  There are several, truly viable, alternatives available.  

If you have an interest in diamond alternatives, contact me: dkbabb@gmail.com

 

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