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Well, if a single company manages to own all the piles of diamonds, they could artificially limit supply to keep prices high.
by umvi 6y ago
Well, if a single company manages to own all the piles of diamonds, they could artificially limit supply to keep prices high.
- rayiner 6y agoBut they don’t.
- GaryNumanVevo 6y agoDe Beers held a diamond monopoly and stock piled diamonds to drive up prices for decades. https://en.wikipedia.org/wiki/De_Beers https://en.wikipedia.org/wiki/De_Beers
- rayiner 6y agoThe monopoly started breaking up decades ago, and is currently at 35%.
- toomuchtodo 6y agoDiamonds can be manufactured in a lab at a higher quality than what you can get out of the ground.
- gruez 6y agoBut then then went 180 and said that imperfections are a feature, not a bug, and therefore natural diamonds are still worth more :).
- deleted 6y ago[deleted]
- jacobwilliamroy 6y agoOnly as long as there are people like you who insist that they are.
- JMTQp8lwXL 6y agoThe company was De Beers and they no longer have a monopoly: https://www.diamondportfolio.com.au/investor-centre/market-information/de-beers-monopoly-broken/ https://www.diamondportfolio.com.au/investor-centre/market-i...
- Dahoon 6y agoNo, but the sharing "partners" might as well be part of De Beers as diamonds are still sold at prices way way above what they are worth. Like "selling iron for gold prices" expensive.
- sukilot 6y agoHow can an optional* non-functional luxury good be sold for more than it's worth? *Worth to your lady, not to you Economically, the diamond is a token of wastefulness that serves only to destroy value as part of the human mating ritual. Bitcoin for women, but even less liquid.
- JMTQp8lwXL 6y agoA bitcoin for women analogy might be generous; one diamond isn't fungible for another one. There's sentimental value.