I agree with all of you who say the value of diamonds results from the DeBeers monopoly, many years of clever marketing, and generations of gullible saps who fall for the whole thing and believe if he really loves her he’ll buy her an outrageously priced little rock. I’m glad my wife doesn’t believe that hooey.
But, strangely enough, I find myself agreeing with TC on a couple of points. First, if your SO really is fixated on the idea of a diamond, and you can afford it, and you feel she/he is worth it, then there’s nothing wrong with buying a big rock for her. Some girls want a new car, or new shoes, or a ski trip, or a beach trip, or a membership at the gym, or good books or music or entertainment, or flowers, or cuddling at home in front of the TV. Some want diamonds. Everyone has different taste. Everyone falls for different marketing ploys. But in the end, if it’s reeeaaaaally important to her, fine, buy her a rock, silly as you may think it is. After all, it’s not for you, it’s for her. And, if it makes her happy it should make you happy.
Second, apparently TC may be right about this:
Perhaps it’s for nefarious reasons, but . . .
[quote]Diamonds to Outpace Metals as Scarcity, Asia Sales Boost Prices
Aug. 7 (Bloomberg) – For the first time in 25 years, diamond production is declining and that may make the world’s most coveted stones a better investment than copper, nickel and zinc, this year’s top-performing commodities.
Output from diamond mines worldwide is likely to fall 2 percent by 2015, says James Picton, a diamond analyst at W.H. Ireland who’s been following the industry for 35 years. . .
The drop in production comes as purchases of the stones rise, helped by the booming economies of China and India. China alone doubled jewelry purchases since 2001 and may buy 20 percent more this year, according to www Diamond Forecast Ltd., a London-based research firm.
the best fundamentals,'' said Evy Hambro, who manages the $6.6 billion World Mining Fund in London for Merrill Lynch. The gap between supply and demand is much bigger relative to other commodities.’’ . . .
Hambro, with 1.5 percent of his assets in diamond companies, said he will buy shares of Germiston, South Africa-based Gem Diamond Mining Corp., which goes public this year, and Toronto- based Aber Diamond Corp. Ian Henderson, who manages $2.5 billion in natural-resource assets for JPMorgan in London, said he has increased his diamond-share holdings to 4 percent from 1 percent in the past year. He declined to elaborate.
I am very positive about diamonds, given the overall supply-demand situation,'' said Henderson. Of the 170 diamond companies out there, only 25 are actually producing.’’
One of those is Dublin-based African Diamonds, whose shares almost tripled this year. Another is Sierra Leone Diamond Co., a Hemel Hempstead, U.K.-based company operating in West Africa, whose stock has also tripled. Shares of Petra Diamonds, a Jersey, U.K.-based explorer in Angola, South Africa and Botswana, have risen 52 percent. . .
The value of rough diamonds, as the uncut stones are called, is likely to increase 30 percent in the next six years, says Picton at Manchester, England-based W.H. Ireland. His research shows that diamonds provided better returns than gold since 1948. . .
Diamonds could very well outperform base metals'' in the coming years, said Andrew Ferguson, who manages about $313 million at New City Investment Managers Ltd. in London. Given the huge increases in demand and the imbalances in supply, I expect good returns.’’
. . . Diamond investments will enjoy ``above-average’’ returns in the next several years, according to Trevor Steel, who manages $600 million in natural-resource assets at Baker Steel Capital Managers in London. . .
W.H. Ireland’s Picton says falling production, led by declines at the biggest producers, including Rio Tinto Group’s Argyle mine in Australia, the world’s largest, will leave $10 billion of demand unfulfilled. . .
Global demand may rise 6 percent a year to $23 billion by 2015, Picton says. . .[/quote]
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