This evening, while suffering through an agonizing commute home, I turned on the local
"all commercials, all the time" station (it's supposed to be news, traffic, and weather) while waiting for the traffic report. A commercial for one of the local diamond shops came on, and amidst the usual advertising blather, it said that diamonds were the "best way to a woman's heart". My first thought was what sexist drivel it was. My next thought was that, sadly, it probably is true for some women. But then I got to thinking about the value of diamonds. What makes a diamond valuable?
Outside of the industrial arena, where diamonds are useful due to their hardness, a diamond has no intrinsic value. Diamond is just carbon in a highly organized fashion. For most people, the main attractive features of diamonds are their high dispersion index and index of refraction -- although most people would say they glitter, sparkle, and have "fire". But is the glitter of a $3000 diamond really 1000 times better than a $3 cubic zirconia? Perhaps. But I believe that the real reason women love diamonds is that they are
perceived to be valuable. If one could purchase a caret diamond for $10 at the local department store, do you think that women would still want them as fine jewelry -- even if they sparkle and glitter just the same? Heaven help the man who purchases a synthetic diamond for his fiancee, even if it is indistinguishable except under a microscope.
And as a side note, diamonds aren't scarce at all. If it wasn't for the De Beers cartel which artificially restricts the diamond market, one caret diamonds might actually cost about $10. You might be interested in reading
this article in The Atlantic which talks about the realities of the diamond market.
In a sense, diamonds have become the ultimate expression of conspicuous consumption. Diamonds are effectively becoming a socially acceptable way to "wear" money. It's no longer in fashion to wear a simple gold band with a small diamond. In many cases, a person wearing a large diamond is advertising the fact that either she (or he) or someone closely linked to her (or him) has money. Have you ever noticed the frenzy at the office when somone has a new engagement ring? How many diamonds are on it? How big is the largest diamond? People are impressed with the woman who received the three caret engagement ring, even when that three caret diamond looks hideously large on her hands.
These days, the escalation of the diamond wars means that men have to buy larger and larger engagement rings, not to mention anniversary rings, the five year "will you marry me again?" ring, eternity rings, diamond pendants, and earrings. You have to give kudos to De Beers's original PR agency (N.W. Ayers & Son) for having created the monster known as the diamond market. Personally, I don't see this escalation stopping. No man in his right mind is going to refuse to give his fiancee the best diamond that's more than he can really afford. He doesn't want to hear, "You only think I'm worth a 1/8 caret ring to you?"
And some day in the future, I'll probably be there with all the other men, giving my fiancee a diamond ring, just to "prove" that I really do love her. After all, why fight a battle that you just can't win?