The Diamond Empire

We may disagree with each other on which party to vote in upcoming elections?  Whether Justin bieber is a gay or not?? Is president Zardari the most hated person in Pakistan or is he not??  But one thing we all are damn sure about is that “Diamonds are Precious “.We all are born with some facts waiting for us in our new world to be accepted as they are without questioning them, one of those facts is that Diamond is valuable, Diamonds are always a symbol of luxury, something that represents “your class”, something that requires hell of a balance to be bought, but did you know that diamonds worth only a fraction of the cost they sell for?

The diamond trade is essentially a monopoly with one company, DeBeers controlling the vast majority of the world’s diamonds. They even don’t hesitate in holding back vast quantities of diamonds each year and paying billions of dollars to other diamond traders and miners just to ensure the consumer market doesn’t get flooded with this gem, otherwise it will lose its charm owing to the economic principle of “less worth of a thing that is in abundance”. The major investors in the diamond mines realized that they had no alternative but to merge their interests into a single entity that would be powerful enough to control production and perpetuate the illusion of scarcity of diamonds.

The Diamond business is the biggest example of how Marketing of a product can define and influence our perception towards it; the idea that it is a rare gem has earned it its value. It is not a coincidence that all famous Movie stars, Celebrities and even Queen wore a diamond, but it is a marketing or great marketing strategy of associating diamonds with glamour and exclusivity, promoting the diamond as one material object which can reflect, in a very personal way, a man’s success in life, association in the public’s mind of diamonds with romance, since young men buy over 90% of all engagement rings,  it would be crucial to inculcate in them the idea that diamonds were a gift of love: the larger and finer the diamond, the greater the expression of love. Similarly, young women had to be encouraged to view diamonds as an integral part of any romantic courtship.

One can praise the professionalism of those involved in successful projection of Diamond, but on the other hand is it ethical to project something opposite to what it actually is?? And play with ignorance of masses?? Lying to somebody and disrespecting the essence of competition in a market by implying a monopoly?? But the most important lesson or question we may say that arises here are we stupid enough to be manipulated so easily???

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I recommend following articles and documentary.

http://en.wikipedia.org/wiki/De_Beers#Controversies

http://topdocumentaryfilms.com/frontline-the-diamond-empire/

 

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