Just like ice from a freezer is as real as ice from a winter street, a diamond is a diamond regardless of origin. Another gave a gloomy picture of what would happen if this accumulation of diamonds were suddenly sold by speculators. Even though diamonds can in fact be shattered, chipped, discolored, or incinerated to ash, the concept of eternity perfectly captured the magical qualities that the advertising agency wanted to attribute to diamonds.
The moment a significant portion of the public begins selling diamonds from this inventory, the price of diamonds cannot be sustained. Mined diamonds pass through dozens of traders and dealers and exchanges, each one adding a markup to the final price. But when the magazine's editor, Dave Watts,tried to sell the diamonds in , he found that neither jewelry stores nor wholesale dealers in London's Hatton Garden district would pay anywhere near that price for the diamonds. Fewer than 0. Suddenly, the market was deluged with diamonds.
Dave Watts summed up the magazine's experiment by saying, "As an 8-year investment the diamonds that we bought have proved to be very poor. Test drillings last year indicated that these pipe mines could produce up to 50 million carats of diamonds a year—more than the entire production of the De Beers cartel in This decline led the Israeli banks to put further pressure on dealers to liquidate their stocks to repay their loans.
The Ayer plan also envisioned using the British royal family to help foster the romantic allure of diamonds. Moreover, instead of lending money based on what Israeli dealers paid for diamonds, the banks began basing their loans on the official De Beers price for diamonds. It created a series of color advertisements in Japanese magazines showing beautiful women displaying their diamond rings. The appraisers at Empire Diamonds examine thousands of diamonds a month but rarely turn up a diamond of extraordinary quality. A large number of fraudulent investment firms, most of them in Arizona, began telephoning prospective clients drawn from various lists of professionals and investors who had recently sold stock.
Diamonds are a traditional and conspicuous signal of achievement, status and success. Yet the study found that "Buried in the negative attitudes Our cutting studios and polishing workshops are full of artisans and craftsmen.
A serious threat to the stability of the diamond invention came in the late s from the sale of "investment" diamonds to speculators in the United States. To exploit this desire for conspicuous display, the agency specifically recommended, "Promote the diamond as one material object which can reflect, in a very personal way, a man's Harold S.