The Daily Brief Nothing is forever: The De Beers story
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Aug 5, 2025 Dive into the fascinating journey of De Beers, the titan of the diamond industry, and discover how it struggles with the rise of lab-grown diamonds. Uncover the implications of shifting consumer preferences that challenge its long-held dominance. Meanwhile, explore the booming gold market, where investment in gold is soaring amid global uncertainties. Learn about the dynamics affecting gold demand and supply, from geopolitical tensions to changing consumer habits, highlighting a major pivot in luxury markets.
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De Beers' Founding Story
- Cecil Rhodes and British financiers formed De Beers in 1888 to control diamond scarcity after large deposits were found.
- They created a global cartel managing every stage of diamond supply to maintain artificial scarcity and high prices.
Diamonds as Love Symbols
- "A diamond is forever" campaign brilliantly linked diamonds to love and lifelong commitment.
- This marketing created an enduring global perception that diamond rings are the only acceptable proposal symbol.
Lab-Grown Diamonds Disrupt Scarcity
- Lab-grown diamonds developed since 1954 challenged De Beers' controlled scarcity by providing cheaper, high-quality alternatives.
- By 2024, lab-grown diamonds' prices dropped dramatically, undermining natural diamond value.