Why you should never buy diamonds, and what you should buy instead…
- The price of diamonds has been artificially inflated since the 1880’s via the De Beers diamond cartel. For the same cost, you can get a high-cost performance gemstone instead of diamond.
- Currently, public perception of diamonds is the direct result of a masterfully executed marketing campaign by De Beers that began in 1938, not inherent scarcity or value. If you’ve read the article by Edward Epstein (you really should), you will know all of the gory details. How brainwashed people are about the “value” of diamonds, even though they’re not actually worth that much. In other words, you not only pay for the diamond itself, but also the marketing fees of this brand.
3. A diamond is an illiquid asset, not an “investment”. Don’t believe me? Try to sell a second-hand diamond ring on eBay or at a pawn shop. Do you really think you’ll get anything close to what you paid for it? Do you really think the price of any diamond you purchase today is going to go up significantly over time? A diamond ring isn’t even a good “insurance policy” to fall back on during hard times – it’s an illiquid asset that you’ll have a hard time selling for a price anywhere close to what you paid for it.
4. The diamond industry often results in warfare, genocide, and terrorism. According to Wikipedia, “a conflict diamond (also called a blood diamond or a war diamond) is a diamond mined in a war zone and sold, usually clandestinely, in order to finance an insurgent or invading army’s war efforts.” Profits from conflict diamonds are used to finance warlords in Angola, Sierra Leone, and Liberia, who use their weapons to kill and maim innocent people. Is it romantic?
5. A diamond is – by nature – just a pretty rock. Think of the oft-quoted “rule” of diamond ring buying: the ring should cost a minimum of two month’s salary (pre-tax), and you should spend as much on a ring as you can afford. Let’s put this rule in its proper context: according to the people who sell pretty rocks, you’re supposed to trade a full two months of your time and effort for one of their pretty rocks. Does that seem wise?
6. People notice the setting more than the diamond itself. To the naked human eye, most decent quality diamonds look the same. Unless the stone is yellow, has major inclusions, or has a distinctly lopsided cut, no one will be able to distinguish an ideal cut, E color and VS-1 stone from a lesser-quality diamond just by looking at it. What people do notice is the setting – how the stone is featured or placed, side stones, and the craftsmanship and artistry of the band. Knowing this – does it make more sense to focus your attention and dollars on a better stone, or in a better setting?
7. The opportunity cost of buying a diamond is huge. Opportunity cost is what you give up by spending your scarce resources on a single option. In other words, if you drop ten grand on a diamond ring, you have $10,000 less to spend on other things, like a fantastic honeymoon, a car, furniture, a down payment on a house, investing for the future, or further education. Are all of these options worth giving up for a little piece of colorless carbon?
Jeulia believes that great jewelry doesn’t have to cost a fortune. And we sell rings which are made of high-quality gemstones and are surprisingly affordable. We feature a beautiful array of designs and styles, ensuring you will find the ring set of your dreams.
Every woman deserves to wear a gorgeous ring, that’s why we bring you the best quality wedding ring sets out there. Whether you’re looking for a vintage, classic, or modern style ring set we have endless options for you to consider.
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