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A manufactured diamond is not a mined diamond, and it never will be. A manufactured diamond cannot help but lack the authenticity of a mined diamond, even if th

A manufactured diamond is not a mined diamond, and it never will be. A manufactured diamond cannot help but lack the authenticity of a mined diamond, even if the two cannot be told apart. It is where a luxury comes from -- not what it ends up being -- that is important in determining its value.

pchristensen 18y ago
It is the story people believe -- not the truth of the situation -- that is important in determining value. If DeBeers can convince people that manufactured diamonds are inferior (and believe me, they will), then diamonds will become like wine or coffee, with connoisseurs who know where the diamonds came from, depth and geologic history, mining conditions, etc. People will brag about how much they paid to signal wealth, since a diamond will no longer be inherently expensive.
- hugh 18y ago
  DeBeers marketing department are geniuses, but they can't perform miracles. Nobody, as far as I know, buys luxury goods which are absolutely indistinguishable from cheaper versions. A $300 bottle of wine tastes somewhat better than a $10 bottle. A $5000 watch is better crafted than a $50 watch. Paying big money for a luxury good only impresses people when they can tell it was expensive without you _actually_ telling them. Ideally the expense will be non-obvious unless you're in the know (which is why rich guys like wearing fancy watches instead of big heavy gold chains around their necks) but there has to be a nonzero difference.
  - DabAsteroid 18y ago
    Nobody, as far as I know, buys luxury goods which are absolutely indistinguishable from cheaper versions. People pay more for wine in bottles, even though the same wine in a box is cheaper. http://www.google.com/search?q=%22No+cork+sniffer+would+be+caught+dead+with+a+box+of+wine%22 http://www.google.com/search?q=%22No+cork+sniffer+would+be+c... . A $300 bottle of wine tastes somewhat better than a $10 bottle. It also sells for $300, despite the fact that the $10 bottle of wine can be made indistinguishable from the $300 bottle of wine by merely adding a few dollars' worth of chemicals. http://www.usatoday.com/tech/science/2006-09-11-wine-chemistry_x.htm http://www.usatoday.com/tech/science/2006-09-11-wine-chemist... chemists are trying to isolate chemicals that produce desirable fragrances and flavors. ... many wineries are shunning such technology and embracing distinctly Luddite, back-to-the Earth growing techniques such as using things like "Preparation 500," the springtime vineyard spray made from the manure-stuffed cow horns, buried over fall and winter, then ground up and mixed with water. "We're trying to make better wine through alchemy," joked Jim Fullmer, director of the Philomath, Ore.-based Demeter Association, a non-profit group that certifies vineyards as "biodynamic" — a sort of hyper-organic designation that means the vintner relies on such things as lunar cycles and planetary alignment rather than chemistry. "Biodynamics is probably the exact opposite," Fullmer said. "Winemaking is an art." . People do not pay $300 a bottle for wine that tastes better. People pay $300 a bottle for wine that makes them feel romantic -- wine based on such things as manure-stuffed cow horns, lunar cycles and planetary alignment.
    - nradov 18y ago
      But that's perfectly economically rational: a glass bottle is more aesthetically pleasing than a cardboard box. You pay for the whole product, not just the liquid it contains. Diamonds are just commodities. The original packaging doesn't count for anything. While some customers will believe the DeBeers marketing message that mined diamonds are somehow superior, many will buy purely on price versus cut / color / clarity / carats. This must drive down the price.
- wallflower 18y ago
  An extended family member knows a diamond dealer in NYC. Everything they do is based on trust - million-dollar handshake deals. If man-made diamonds of this high quality were brought into this tight network, I believe you would be shunned and excluded. "The De Beers diamond advertising campaign is acknowledged as one of the most successful and innovative campaigns in history." http://en.wikipedia.org/wiki/Diamond#History http://en.wikipedia.org/wiki/Diamond#History
- iron_ball 18y ago
  One hedge fund manager meets another outside Michael's, and they notice they are both wearing the same Cartier watch. "How much did you pay for it?" asks the first. "$11,000," replies the second, preening. "Ha!" the first says triumphantly. "I paid $25,000!"

pchristensen 18y ago

It is the story people believe -- not the truth of the situation -- that is important in determining value. If DeBeers can convince people that manufactured diamonds are inferior (and believe me, they will), then diamonds will become like wine or coffee, with connoisseurs who know where the diamonds came from, depth and geologic history, mining conditions, etc. People will brag about how much they paid to signal wealth, since a diamond will no longer be inherently expensive.

hugh 18y ago
DeBeers marketing department are geniuses, but they can't perform miracles. Nobody, as far as I know, buys luxury goods which are absolutely indistinguishable from cheaper versions. A $300 bottle of wine tastes somewhat better than a $10 bottle. A $5000 watch is better crafted than a $50 watch. Paying big money for a luxury good only impresses people when they can tell it was expensive without you _actually_ telling them. Ideally the expense will be non-obvious unless you're in the know (which is why rich guys like wearing fancy watches instead of big heavy gold chains around their necks) but there has to be a nonzero difference.
- DabAsteroid 18y ago
  Nobody, as far as I know, buys luxury goods which are absolutely indistinguishable from cheaper versions. People pay more for wine in bottles, even though the same wine in a box is cheaper. http://www.google.com/search?q=%22No+cork+sniffer+would+be+caught+dead+with+a+box+of+wine%22 http://www.google.com/search?q=%22No+cork+sniffer+would+be+c... . A $300 bottle of wine tastes somewhat better than a $10 bottle. It also sells for $300, despite the fact that the $10 bottle of wine can be made indistinguishable from the $300 bottle of wine by merely adding a few dollars' worth of chemicals. http://www.usatoday.com/tech/science/2006-09-11-wine-chemistry_x.htm http://www.usatoday.com/tech/science/2006-09-11-wine-chemist... chemists are trying to isolate chemicals that produce desirable fragrances and flavors. ... many wineries are shunning such technology and embracing distinctly Luddite, back-to-the Earth growing techniques such as using things like "Preparation 500," the springtime vineyard spray made from the manure-stuffed cow horns, buried over fall and winter, then ground up and mixed with water. "We're trying to make better wine through alchemy," joked Jim Fullmer, director of the Philomath, Ore.-based Demeter Association, a non-profit group that certifies vineyards as "biodynamic" — a sort of hyper-organic designation that means the vintner relies on such things as lunar cycles and planetary alignment rather than chemistry. "Biodynamics is probably the exact opposite," Fullmer said. "Winemaking is an art." . People do not pay $300 a bottle for wine that tastes better. People pay $300 a bottle for wine that makes them feel romantic -- wine based on such things as manure-stuffed cow horns, lunar cycles and planetary alignment.
  - nradov 18y ago
    But that's perfectly economically rational: a glass bottle is more aesthetically pleasing than a cardboard box. You pay for the whole product, not just the liquid it contains. Diamonds are just commodities. The original packaging doesn't count for anything. While some customers will believe the DeBeers marketing message that mined diamonds are somehow superior, many will buy purely on price versus cut / color / clarity / carats. This must drive down the price.
wallflower 18y ago
An extended family member knows a diamond dealer in NYC. Everything they do is based on trust - million-dollar handshake deals. If man-made diamonds of this high quality were brought into this tight network, I believe you would be shunned and excluded. "The De Beers diamond advertising campaign is acknowledged as one of the most successful and innovative campaigns in history." http://en.wikipedia.org/wiki/Diamond#History http://en.wikipedia.org/wiki/Diamond#History
iron_ball 18y ago
One hedge fund manager meets another outside Michael's, and they notice they are both wearing the same Cartier watch. "How much did you pay for it?" asks the first. "$11,000," replies the second, preening. "Ha!" the first says triumphantly. "I paid $25,000!"