5 Reasons Why You Should Not Buy Diamonds
3. Flat Price
As discussed previously, diamond prices have remained flat from past few years. The most important reason is the monopoly from DeBeers.
DeBeers is a South African company that dominates all the diamond mining, diamond hops, diamond trading and industrial diamond manufacturing sectors across the world. The company decides to sell more diamonds to those countries where the diamond market are favorable.
From past few years, many countries that produce large diamonds have come out of the DeBeers monopoly, and this has become the main reason for the flat prices in diamonds.
Nalebuff and Brandenburger expert business strategists said that, "People value diamonds highly because they perceive them to be scarce. They're not, but that's beside the point; it's the perception of scarcity that counts. The perceived scarcity has made diamonds an ideal choice for engagement rings, but not without some help from a long running DeBeers advertising campaign".
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