Why the Diamond Industry Is Collapsing

A cartel that convinced millions to spend two months' salary on rocks that aren't even rare — then social media killed the illusion.

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By The Numbers

$6B

peak revenue annually

-74%

lab diamond price crash

-50%

marriage rate decline

What They Nailed Early

Built the first mass-market desire for diamonds through brilliant media manipulation. Controlled supply like a true cartel while flooding newspapers, movies, and schools with messaging. Hit Baby Boomers at the perfect time — 96% married, many twice.

What Changed

Social media flipped the script. Younger Millennials and Gen Z learned about mining conditions and rejected gaudy displays of wealth for authenticity and experiences. Marriage rates collapsed by over 50%. Then Alibaba democratized production — you can buy diamond-making equipment for $200K and flood the market.

Where it Landed

Total price collapse. Lab diamonds down 74% in one year, mined diamonds down 26%. The cartel lost control of supply, demand evaporated, and the illusion shattered. Jewelers are bleeding.

The Principles

Control the narrative AND the supply. De Beers mastered mass media manipulation, but when they lost control of both the message (social media) and supply (cheap lab tech), the whole model collapsed.

What creates you eventually kills you. The same mass media that built the diamond myth became social media that exposed it. Your competitive advantage has an expiration date.

Manufactured scarcity only works if no one can call your bluff. Once $200K buys you a diamond factory on Alibaba, the 'rare gemstone' story dies and prices crater 74%.

Builder's Takeaway

3 warning signs your market dominance is artificial:

•

Your product's value depends on controlling information (not actual utility)

•

Technology can replicate your 'scarce' resource cheaply (check Alibaba)

•

Your customer base is one generation — when they age out, demand dies

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