How We Were Conned into Buying Diamonds December 19, 2006Posted by Unreasonable in Matters Financial, Uncategorized.
In 1982 the diamond market wwas in upheaval. New large deposits were being discovered. Prices were plummeting. The price of a 1 carat flawless investment diamond fell from $60,000 to $6,000 in five years.
In that climate Edward Jay Epstein wrote a book chronicling the story of De Beers: how they carefully controlled both the supply and demand for 100 years. The book is The Diamond Invention. You can buy it used for $145.61 or read it for free at his website.
He also wrote an article summarizing it for the Atlantic. If you’ve ever felt the pressure to buy a diamond or hoped to receive a large one, read this article. It is the textbook example of how we are manipulated to create a market for something we don’t need.