3 ms·
That's the whole idea. There is no secondary market for diamonds - it's not a scarce resource. Scarcity is completely artificial, combined with decades of marke
by renegade-otter 3y ago
That's the whole idea. There is no secondary market for diamonds - it's not a scarce resource. Scarcity is completely artificial, combined with decades of marketing campaigns.
"Diamonds are forever". Yeah, they are - because once you buy it, you can't really sell it to break even, let alone make a profit. Gold has natural market price fluctuations at least.
- philwelch 3y agoNo, there has to be a secondary market somewhere because professional diamond theft is a thing. So they have to be able to fence the diamonds somewhere. And this isn't a small time thing, either; there have been a few diamond heists in the past couple of decades in the tens of millions of dollars/pounds/euros each, involving serious professional criminals.
- theshrike79 3y agoIt's because diamonds are mostly untraceable. If you steal it, nobody can tell if a diamond sold 2 years ago was at one point stolen or not. But actual diamond jewellery is mostly priced like artwork. The worth of the actual separate components has very little to do with the price of the item.