Are Diamonds Really Valuable?
Diamonds are beautiful and have many unique properties, but their value is certainly in large part due to the careful efforts of the Syndicate over the years. Experts say that without the efforts of the Central Selling Organization (CSO) even the gem diamonds would be worth only between $2 and $30 based on their true scarcity and the cost of producing them. Even Nick Oppenheimer once said, “A gemstone is the ultimate luxury product. It has no material use. Men and women desire to have diamonds not for what they [diamonds] can do but for what they desire.” For many years the Syndicate made sure that the price never went down, giving the stones a great reputation as a store of value. If people could always be sure that the investment in a diamond would never be worth less than it was worth initially, that gave diamonds a big advantage over many other traditional investments. Even by buying land one could never be sure that the price would never fall. One of De Beers’ main efforts is to m