Diamonds have long been considered the ultimate symbol of wealth, luxury, and eternal love. From engagement rings to red carpet accessories, these sparkling stones have been embedded in global culture as rare treasures of the Earth.
However, much of what people believe about diamonds, especially their rarity, is not grounded in geology but in one of the most successful marketing campaigns of the 20th century.
The truth is that diamonds are not nearly as rare as they are made out to be, and the illusion of scarcity has been carefully curated to drive demand and maintain high prices.
De Beers Manufactured Scarcity and Created a Monopoly
The idea that diamonds are rare is largely a result of the actions of one company: De Beers. In the late 19th and early 20th centuries, De Beers consolidated control over the majority of the world’s diamond mines, particularly in Africa.
At one point, the company controlled up to 90% of the global diamond supply. With such dominance, De Beers was in a unique position to restrict the flow of diamonds into the market.
Rather than allowing supply and demand to naturally determine diamond prices, De Beers strategically limited the number of diamonds released each year. This manipulation created an artificial scarcity, which in turn drove prices higher.
Consumers came to believe that diamonds were incredibly rare and, by extension, incredibly valuable. In reality, the Earth produces a relatively abundant amount of diamonds every year, just not all of them are allowed to reach the market.
“A Diamond is Forever”, the Iconic Slogan that Changed Everything
In 1947, De Beers launched a marketing campaign that would forever alter the public’s perception of diamonds. With the help of advertising agency N.W. Ayer, they introduced the now-famous slogan: "A Diamond Is Forever."
This phrase did more than advertise a product; it embedded a cultural idea that diamonds were not only rare and valuable, but also essential symbols of enduring love.
The campaign associated diamonds with romance, commitment, and tradition, effectively transforming a luxury good into a societal expectation. Before the campaign, diamond engagement rings were not the norm in many cultures.
After it, they became a staple. By tying diamonds to an emotional and social ritual, De Beers ensured continued demand, even if the actual supply of diamonds was anything but scarce.
Supply Outpaces Demand
Today, diamond mining is no longer as monopolized as it once was. Countries like Russia, Canada, Australia, and Botswana have entered the market with their own production.
Despite this, the narrative of diamond rarity persists. The truth is, millions of carats of diamonds are mined each year, and supply often exceeds demand.
To maintain the illusion of exclusivity, many diamond producers now stockpile diamonds or limit what is released into the market. Moreover, the rise of synthetic diamonds, chemically identical to mined ones, further challenges the notion of scarcity.
Lab-grown diamonds can be produced in large quantities, are environmentally less damaging, and often significantly cheaper. Yet many consumers still pay a premium for natural diamonds, clinging to the belief that they are unique and rare.
Perceived Value vs. Intrinsic Value
Diamonds, like many luxury goods, derive their worth not from utility but from perceived value. Unlike gold, which has industrial and economic applications, diamonds have relatively limited use outside of jewelry and some specialized tools.
Their value is primarily sustained by the combination of branding, tradition, marketing, and not by inherent rarity or utility.
This means the diamond market behaves more like the art market than the commodity market. Prices are based on subjective factors like emotional appeal, cultural significance, and tradition, rather than supply chain fundamentals.
When consumers believe a product is rare and meaningful, they are willing to pay more for it, even if neither of those beliefs is objectively true.
Let’s Rethink What Makes a Gem Valuable
As more people learn about the realities of the diamond industry, perspectives are slowly shifting. Younger generations are increasingly open to alternatives like lab-grown diamonds, moissanite, or even choosing to forgo traditional engagement rings altogether.
Ethical and environmental concerns about mining practices have also contributed to a broader reevaluation of what makes a gem "valuable."
Understanding the history of diamond marketing allows consumers to make more informed choices. While there is nothing inherently wrong with valuing diamonds, it’s important to recognize that their "rarity" is more about perception than fact.
The belief in the rarity of diamonds is largely the result of a century-long marketing narrative, carefully crafted and maintained by industry leaders like De Beers.
By controlling supply and attaching powerful emotional symbolism to diamonds, the industry has convinced generations of consumers that these stones are rare, valuable, and essential.
In truth, diamonds are more common than many realize, and their perceived value is a triumph of branding over geology.
