Michael GirdleyGirdley Enterprises, Girdley Enterprises, Inc. · Business builder and investor

The collapse of the diamond market

Name: The collapse of the diamond market
Uploaded: 2025-03-14T15:41:18+00:00
Duration: 59 s
Channel: Michael Girdley
Description: In this video, the narrator argues that the high price of diamonds is an artificial construct created by the De Beers cartel, which historically…

14 Mar 2025 · 1 min

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In this video, the narrator argues that the high price of diamonds is an artificial construct created by the De Beers cartel, which historically controlled about 90% of the world’s diamond supply. By restricting supply and launching a massive marketing campaign that linked diamonds to love and status, De Beers inflated prices and generated billions in revenue. The video then outlines three major forces eroding that market: (1) declining marriage and engagement rates, reducing the core demand for diamond rings; (2) social‑media exposure of ethical and environmental issues surrounding mined diamonds, which has turned public opinion against them; and (3) the emergence of lab‑grown diamonds that are chemically identical but cost less than half as much, undermining the scarcity narrative. Together, these trends are causing diamond prices to fall sharply and prompting jewelers to panic, signaling the end of De Beers’ monopoly.

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Diamonds aren't actually expensive. Their value has actually been, well, totally fake. Now prices are crashing and it seems like the balloon might finally have popped. And here's what's going on. It all starts back in the 1940s and a South African cartel called De Beers controls 90% of the world's diamond supply. But there's a problem. Diamonds aren't actually that rare in nature and people, well, they don't really care. So what do they do? They manufacture demand and they have a huge hoard of diamonds but only release a few at a time to keep prices high. Then they launched the most successful marketing campaign in history. And by the 2000s, De Beers was making over $6 $5 billion a year selling these overpriced stones. But that's when the trouble started. First, marriage rates have plummeted, so fewer people are buying engagement rings. Next, social media has completely exposed the diamond scam. Suddenly, everybody has heard about blood diamonds, child labor, and the environmental damage that diamond mining causes. The biggest secret that social media let out? Lab-grown diamonds. They're chemically identical but less than half the price of natural diamonds. And so that De Beers monopoly, it's crumbling, and jewelers are panicking. Get the full story here.