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is it true that the price of diamonds is based on a monopoly?
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diamonds are intrinsically worthless this is simply wrong. (1) diamonds that are sold for anything less than, oh, let's say $5000 at original retail - are indeed utterly, totally, completely worthless. it is simply "one of the great scams". their real "price" is maybe "five bucks". end of story. there is no secondary market.  literally - "end of story". if you buy a "diamond" lol for "$2000" to impress your loved one, you can not then "sell it" for any amount of money.  it is: worthless. once again: simple, undeniable fact. the diamond you bought for 2 grand cannot be resold. ir's worthless. (ok, maybe you can get 100 bucks for it, something like that. or, you can scam someone clueless, and get 200 bucks.) (2) however actual "investment" stones do in fact have a value - if somewhat fragile. example, a few years ago i sold a stone for 30 thousand. that was a "real" price and it was quite liquid - i was within days able to find a buyer. (a dealer - he would have then sold it on for 35 or whatever.) i have never dealt in stones over six figures, but i'm fairly certain those are "real" valuable objects: just like paintings by name artists. (however: yes, the line between "laughable diamonds" and actual investment stones, is indeed moving ever upwards.) (note - the "elephant in the room" with diamonds is that ge's industrial process for simply making utterly flawless diamonds, starting with carbon, is getting better every decade.) (a second overwheleming point that nobody has mentioned: diamonds get beat-up.  regarding "engagement ring diamonds", a used one is exactly as useless as a used car.  it's crap.  just as with $200,000 picassos, this concept does not apply to "actual investment stones".) note that many of the comments/arguments on this page are very confused because: people are not distinguishing between the (rofl) "engagement ring scam market" and the rarefied "investment gem market". the two things are utterly different. yes, "engagement ring diamonds" are an utter scam, and are simply: "worthless".  the fundamental, basic, overwhelming scam in today's business/social universe is: "engagement diamonds". yes, the price is only due to marketing/monopolies etc. elephant in the room a: ge's technology can - end of story - manufacture diamonds.  (starting with "pencil leads".)  end of story.  it's all over. elephant in the room b: folks forget that diamonds get beat-up, they are just like used cars. regarding "engagement-ring diamonds", nobody has ever, or will ever, bought a used one. simple, utterly undeniable fact: regarding "engagement ring diamonds". they have: zero value.  you cannot resell them. end of story. if you buy a house, you can resell it. if you buy a car, you can resell it (at a spectacular loss). if you buy a picasso, you can resell it (almost always making a huge profit). if you buy an "engagement ring diamond", it is worth: nothing. zero. nada. strictly regarding investment stones, which is a distinctly utterly different market.  this market has no connection, in any way, at all, even vaguely, it is utterly unrelated, to "engagement ring diamonds".  you can in fact buy and sell these items - very much like say "art" or "mid century antiques", and make money. this market just has utterly no connection to the whole "engagement ring diamonds" scam system. say you buy wine at the supermarket, for 5 to 100 bucks a bottle. if you think that the "wine" thus bought, has a secondary market, or you can invest in it or something: you have lost your mind. in total contrast: yes, although totally flakey, there is indeed an "investment wine market" which is real and reasonable. i for example have made some money in that. (i have a great anecdote even - i had one cellar of wine in burgundy, which could have been sold for, say, 30 grand - but we drank it  :)  ) again, the (somewhat bizarre) actual market in investment wine, just has to "buying wine in the supermarket".  to further the analogy: wine prices in the supermarket / your (rofl) wine dealer, from 5 to 100 bucks, are just: utterly laughable. utterly. laughable. much as folks sit around, and decide on "label designs", they sit around, and decide on "price points". there is, utterly, no difference between $5 and $100 grape juice rofl "wine". the price difference is simply a marketing decision: at best, you can think of it as a velbin good. ... exactly the same applies to "engagement ring diamonds".
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