It’s a Great Time to Buy a Diamond, But Fewer People Want One
In the diamond industry, even the crooks are old-fashioned.
The ringleaders jailed for a $20 million jewelry heist in London last year were in theirsixties and seventies, so it’s no surprise they’d go after the gems. They’re old enough to remember when advertisers said diamonds were forever and Marilyn Monroe sang that they were a girl’s best friend.
Not anymore. Diamonds are losing their allure for many consumers more interested in spending money on vacations, fancy handbags and high-tech gadgets. Mine owners like De Beers — who helped dream up those successful marketing campaigns in years past — have been unable to prevent prices from dropping below where they were a decade ago, a sign the industry is failing to maintain the cachet of its brand.
Diamond Slogan
De Beers’ monopoly on diamond supply in the 20th century meant money spent on persuading consumers to pay high-end prices for commodity minerals paid off in surging sales. The investment led in the 1940s to creation of the slogan “A diamond is forever,” and the industry heavily promoted the gems for engagement rings. Jewelersloaned pieces to celebrities like Monroe and 1944 best actress Oscar winner Jennifer Jones to create a buzz around the product as a luxury item.
The new millennium brought the end of the monopoly, meaning other suppliers were able to sell their gems piggybacking on De Beers’ advertising. The company cut itsmarketing budget in half to about $100 million a year through the 2000s.
“The industry is a victim of its own history,” said Charles Wyndham, a former sales director at De Beers and founder of WWW International Diamond Consultants Ltd. “Everyone had a pretty easy ride when De Beers had its monopoly. Everybody has got to think how they can turn it around. It requires a huge cultural change.”
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