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Diamond branding taps into a much more fundamental obsession with scarcity, which manufactured objects cannot provide. Scott Galloway explores this really wel

Diamond branding taps into a much more fundamental obsession with scarcity, which manufactured objects cannot provide. Scott Galloway explores this really well in a recent post comparing NFTs to long-standing art world practices: "Scarcity has always been a function of bits, not atoms." [1] I wonder if synthetic diamonds that were organized into specifically limited editions would hold more value... [1] https://www.profgalloway.com/scarcity-cred/ https://www.profgalloway.com/scarcity-cred/

Nursie 5y ago
Potentially synthetic diamonds could destroy the scarcity appeal of natural diamonds.
- evrydayhustling 5y ago
  Right or wrong, Galloway's thesis would specifically reject that idea. Synthetic diamonds are equivalent (or superior!) on an atoms level. But on a bits level they lack the history of being formed in the Earth's crust, which stays scarce. Diamond marketing exploits that to good effect -- most diamonds are marked and registered in a database that traces its unique history. Doing so makes it possible to value the history as unique, and also leads by example in investing in the value of that history (they make a big deal out of the tech used to confirm authenticity). Since the final purpose of the diamond is to demonstrate stored value rather than produce it, the target buyer is focused on whether others recognize the value, not whether it is justified. On a personal level, I think the history of "real" diamonds is almost always horrific and a negative asset! I hope companies like Pandora can put marketing power into creating scarcity stories for synthetic diamonds.
  - an_opabinia 5y ago
    > most diamonds are marked and registered in a database that traces its unique history Most engineering projects around cultural products change (not necessarily improve) the "registered in a database" process. Whereas most value comes from creating / enriching a "unique history."
  - Nursie 5y ago
    > Doing so makes it possible to value the history as unique It may make it possible, but I would dispute that many people really care all that much about the story. Sure, they care about 'real', but what that means is up for debate. > the target buyer is focused on whether others recognize the value Pretty solidly they don't, hence the abysmal second hand values! But you're not wrong - to split hairs I think it's whether others recognise how much was spent, which lots of people confuse with value :)

Nursie 5y ago

Potentially synthetic diamonds could destroy the scarcity appeal of natural diamonds.

evrydayhustling 5y ago
Right or wrong, Galloway's thesis would specifically reject that idea. Synthetic diamonds are equivalent (or superior!) on an atoms level. But on a bits level they lack the history of being formed in the Earth's crust, which stays scarce. Diamond marketing exploits that to good effect -- most diamonds are marked and registered in a database that traces its unique history. Doing so makes it possible to value the history as unique, and also leads by example in investing in the value of that history (they make a big deal out of the tech used to confirm authenticity). Since the final purpose of the diamond is to demonstrate stored value rather than produce it, the target buyer is focused on whether others recognize the value, not whether it is justified. On a personal level, I think the history of "real" diamonds is almost always horrific and a negative asset! I hope companies like Pandora can put marketing power into creating scarcity stories for synthetic diamonds.
- an_opabinia 5y ago
  > most diamonds are marked and registered in a database that traces its unique history Most engineering projects around cultural products change (not necessarily improve) the "registered in a database" process. Whereas most value comes from creating / enriching a "unique history."
- Nursie 5y ago
  > Doing so makes it possible to value the history as unique It may make it possible, but I would dispute that many people really care all that much about the story. Sure, they care about 'real', but what that means is up for debate. > the target buyer is focused on whether others recognize the value Pretty solidly they don't, hence the abysmal second hand values! But you're not wrong - to split hairs I think it's whether others recognise how much was spent, which lots of people confuse with value :)