Why are

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The real value of diamonds is not what you think it is.
Deepika Padukone spent around 2.7 cr on her diamond ring
But what if i told you that this was worth virtually ……nothing
“SO,WHY ARE DIAMONDS SO EXPENSIVE?”
One word, DeBeers
Who is DeBeers? DeBeers is the world’s leader in diamond production. They also own some of the largest mines. Because of this, they have a big influence on the diamond industry.
Now Lets wind back the clock a little
The engagement ring concept was not popular in the old days. There were other symbols of engagement before this, including rings, but they didn't typically have diamonds. This is where DeBeers comes in. DeBeers is the company that convinced people that engagement rings need diamonds.
Do you know diamonds were first found in the South of India? Later on, diamonds were discovered in Brazil, South Africa, Venezuela, Russia, and Australia. In the beginning, the diamond trade took place between India and Brazil.
Author and industry expert Edward Jay Epstein explained in an interview with Power Line that diamonds were a rarity up until the mid- 1800s. It was in the second half of the 19th century, that a new mine was discovered in Kimberly, a city in South Africa which had the potential of flooding the market with diamonds.
When De Beers ko found out about this mine he was concerned the value of diamonds will decrease in the market due to the abundance in supply. So, to prevent the diamond’s value from falling, De Beers intervened, bought up the mine and maintained tight control over the global diamond supply in order to regulate the prices and keep the perception that diamonds are rare and expensive.
How did they do it?
They found out how many Americans were expected to get married that year and limited the number of diamonds they produced that year. Production of limited diamonds gave an illusion that diamonds were exceedingly rare. In vice-versa, the seemingly limited supply inflated the cost of diamonds.
Throughout the 19th century, De Beers maintained a monopoly on the global diamond mines, they would stockpile diamonds, limit supply and drive up demand and costs.
The story doesn't end here, de beeres started a campaign to promote diamonds in engagement rings.
. The brand very smartly pushed away the traditional ruby and sapphire rings and replaced it with an overwhelming demand for diamond rings.
Not just an advertisement campaign, De Beers has also spent boatlands of money putting more diamonds in movies, mostly in thief movies and making famous people like Marilyn Monroe sing about diamonds, “Diamonds are a girl’s best friend”. This created a sense of want and longing for diamonds in people’s minds and especially women’s.
That’s a smart advertising and marketing strategy.
Diamond claim holders joined hands with De Beers because their interest was the same- create a scarcity of diamonds followed up by sky-touching prices.
In the 1930s, when the diamonds was declining, the company again started a new marketing campaign called, “ A diamond is forever.” Through this campaign, men were convinced that the size of the diamond in an engagement ring showed how much they loved their fiancee. Movie stars were shown wearing diamond rings in movies. In 1947, “A diamond is forever” became the company tagline and later on its motto. Even on the eve of World War Two, a mere 10% of engagement rings contained diamonds. By the end of the 20th Century, 80% did. at the start of the De Beers campaign, a single month's salary was the suggested ring spend. In the 1980s in the US, it became two months. One advert featured a pouting woman, a scarf, a finger, a diamond ring and the words: "Two months' salary showed the future Mrs Smith what the future would be like."
These two achievements - making the diamond ring an essential part of getting married and dictating how much a man should pay - make it one of the most successful bits of marketing ever undertaken

As a result of these campaigns, the number of brides receiving engagement rings, and diamond prices in the U.S., increased dramatically. That’s how diamonds became a symbol of love.
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