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Diamond prices are in free fall in one key corner of the market

bloomberg.com

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Re: Diamond prices are in free fall in one key corner of the market

#31

Post by gnicholas »

I wonder what the second-order consequences will be. That is, people will still want to signal their commitment/ability to provide when proposing, so the drop in the price of diamonds won't necessarily reduce the overall outlay.

Instead, it would shift the expense to another category (platinum or other expensive metals) or simply lead people to buy more carats (4 is the new 2!). In some ways, these moves could help luxury brands like Tiffany, since their well-known price premium would provide the same signaling device for folks who want to spend tens of thousands of dollars when proposing.

Re: Diamond prices are in free fall in one key corner of the market

#32

Post by m-ee »

pjot wrote: post #28
xnx wrote: post #19

Earlier quoted context omitted.

Welcome to the world of Veblen goods: https://en.wikipedia.org/wiki/Veblen_good

When the Apple App Store first came out there was an app called “I am rich” that cost $1000. It’s only functionality was a button that when pressed displayed the text, “I am rich!”

It was better than that, it displayed a few sentences that included a misspelling

Re: Diamond prices are in free fall in one key corner of the market

#33

Post by a-user-you-like »

throw3747874747 wrote: post #16
OJFord wrote: post #5

It's crazy to prefer a natural diamond for anything other than a collectors' item. It's not about being 'cheap' - whatever your budget is, if you're picking an engagement ring say, why not get a technically superior (or larger) stone for the same price tag?

If future wife requires diamond, another stone is not going to fix root problem you have. Go with someone less materialistic.

If you ask her if she'd prefer a lab diamond or one from the ground, and she says ground, you have your answer. If you force the issue and insist on getting the lab diamond, you're the douche.

Re: Diamond prices are in free fall in one key corner of the market

#34

Post by TheDudeMan »

paxys wrote: post #22
threadweaver34 wrote: post #21

Earlier quoted context omitted.

> derives its value from its rareness Hah! The big issue with choosing a smaller, natural stone is you can't really be sure it's actually natural. The industry has so many unethical practices I wouldn't be confident in any "certification" that comes with a stone's origin. Even lower-grade stones might just be from lab rejects, or labs intentionally growing good, but not perfect stones.

As opposed to the diamond mining industry which is a paragon of ethics...

"As opposed to"? Sounds like you are agreeing that "The industry has so many unethical practices".

Re: Diamond prices are in free fall in one key corner of the market

#35

Post by paxys »

gnicholas wrote: post #31

I wonder what the second-order consequences will be. That is, people will still want to signal their commitment/ability to provide when proposing, so the drop in the price of diamonds won't necessarily reduce the overall outlay. Instead, it would shift the expense to another category (platinum or other expensive metals) or simply lead people to buy more carats (4 is the new 2!). In some ways, these moves could help l…

Rings will get bigger/more extravagant and get mixed with other precious gems or metals. What is not going to happen is stores selling cheaper jewelry.

Re: Diamond prices are in free fall in one key corner of the market

#36

Post by kylehotchkiss »

> Diamond demand across the board has weakened after the pandemic, as consumers splash out again on travel and experiences, while economic headwinds eat into luxury spending

Are people becoming more careful about such valuable purchases since losing a diamond ring is so heartbreaking? It seems like the concept of "throwaway" rings is increasing so you don't have to worry about losing the real one which is an argument no person ever wants to have with their spouse. I keep my real one locked away and wear a titanium one around.

Re: Diamond prices are in free fall in one key corner of the market

#37

Post by TheDudeMan »

jewelry wrote: post #29
silisili wrote: post #9

Earlier quoted context omitted.

Not just that, even natural diamonds just aren't that rare. This is what happens when one company corners a market, and controls supply and marketing.

It's also a product that's not required for day-to-day.

Unless you have to cut really hard things.

Re: Diamond prices are in free fall in one key corner of the market

#38

Post by paxys »

TheDudeMan wrote: post #34
paxys wrote: post #22

Earlier quoted context omitted.

As opposed to the diamond mining industry which is a paragon of ethics...

"As opposed to"? Sounds like you are agreeing that "The industry has so many unethical practices".

Mined and lab grown diamonds have entirely different suppliers, supply chains and certifications. The person I replied to has problems with the latter, which is idiotic considering the alternative is 1000x worse.

Re: Diamond prices are in free fall in one key corner of the market

#39

Post by bigbillheck »

ethanbond wrote: post #27
jncfhnb wrote: post #24

Earlier quoted context omitted.

How is it not a character flaw ?

Because all of us want stupid shit? Unless you’re willing to bundle everything beyond pure Buddha-tier equanimity as “character flaws.” it’s unfair to draw the line between “useless thing you were socialized to spend money on” and “useless thing someone else was socialized to spend money on.”

The flaw isn't 'wanting the diamond', the flaw is 'being aware of the horrific nature of the industry and still wanting the diamond'.

Re: Diamond prices are in free fall in one key corner of the market

#40

Post by londons_explore »

paxys wrote: post #15
slashdev wrote: post #8

Earlier quoted context omitted.

I pitched this to my wife a few years back. She insisted she’d rather have a smaller natural diamond. It makes no sense to me. Shiny carbon is shiny carbon to me. There’s no real logic in it. But given it’s a status symbol that derives its value from its rareness, I suppose it’s no different than a Luis Vutton or a Rolex. It’s not about the function, it’s about the fact that you can afford one. I hate that mentality,…

A good Rolex at least has a thriving resale market, and can actually increase in value over time. Same for a lot of other luxury goods as well as other stores of value (like gold or Bitcoin). Diamonds on the other hand are effectively worthless the moment they leave the store. Their high prices are a product of marketing and social pressure, nothing more.

> effectively worthless the moment they leave the store

I hear this a lot... But where can I buy a massive diamond 2nd hand for a few bucks?

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