Question

How rare are diamonds really? How did De Beers popularize them for engagement rings? How has the diamond trade led to political issues? War? A black market? What is the most expensive element? Why? Please answer in at least 150 words.

Answer 1

Diamonds are the stones, made of pure carbon and are present as a natural resource. Since diamonds as stones are only present in few parts of the world and in very small amount, then the diamond stones become a rare commodity. This rareness of the diamond stone and its vividness as well as exclusivity have been highlighted by the company to make it popular. The company strategically communicates the high value proposition associated with the diamond and make people feel as the proud owner of the diamond. By, this way, the company also makes value based pricing of the diamond based product on the basis of color, size and brightness of the diamond among the other factors. The rarity of the diamond as stone and its demand among the wealthy as well as middle income consumers, have made the governments to take control of the area to prevent illegal mining of the diamond. It has led to the gang war between two illegal groups of miners, fighting between the patrolling agencies and illegal miners and colonial control of the mighty country upon the areas (in the past) where the diamond stone is present. So, it is the exclusivity, feeling of the ownership of rare commodity and the size of diamond that makes it significant among the different stakeholders.