Diamonds are marketed as rare, precious gems that symbolize eternal love and represent significant financial investment. The engagement ring industry alone generates over $7 billion annually based on the belief that diamonds are scarce and valuable.
But here's a shocking truth:Diamonds are neither rare nor intrinsically valuable.They're actually one of the most common gemstones on Earth, and their perceived worth is entirely artificial, created by one of the most successful marketing campaigns in history.
The diamond scam began in the 1930swhen the De Beers company faced a serious problem: diamond sales were plummeting because people realized the stones had no practical value beyond industrial uses. De Beers controlled 90% of the world's diamond supply but couldn't convince people to buy their product.
So they hired an advertising agency to create artificial demand through psychological manipulation. The "A Diamond Is Forever" campaign launched in 1947 and fundamentally changed how people thought about diamonds and relationships.
Here's what's particularly manipulative:De Beers artificially restricted diamond supplyto create the illusion of scarcity while simultaneously convincing people that diamond engagement rings were a mandatory tradition. They even invented the "two months' salary" rule to establish artificial pricing standards.
The reality is devastating for anyone who's bought diamonds: These stones have virtually no resale value.A diamond ring that costs $5,000 retail might be worth $500 to a jeweler the next day. The entire market is propped up by artificial scarcity and marketing psychology.
Even more shocking:Industrial diamonds used in manufacturing are chemically identical to "precious" diamonds but cost a fraction of the price. The only difference is marketing.
That diamond on your finger isn't valuable because it's rare—it's expensive because you've been programmed to believe it should be.