2006-08-02 10:30:37 · 15 answers · asked by Mervyn 2 in Business & Finance ➔ Small Business
cause girls love um and guy's buy um, hehe!!
2006-08-02 10:34:13 · answer #1 · answered by leakser68 4 · 0⤊ 0⤋
Normally the rules of supply and demand dictate a price of any product, although the rules are a bit skewed here...
Diamonds are much more common than emeralds or rubies. In the late 19th and early 20th centuries, a diamond ring wasn't nearly as valued as a ruby or emerald ring. But, then came DeBeers.
I don't know DeBeers history much, but I know that they control the majority of the diamond trade, thus controlling the supply. They do this by buying every new diamond mine that they can find.
They also help with increasing demand, by well-designed and overwhelming advertising campaigns. They almost single handedly redefined diamonds as the must-have engagement ring stone, and the mark of best quality for gemstone jewelry. So they pump up demand as well.
This means good control over the price of diamonds, driving prices up as high as people will pay.
2006-08-02 10:40:33 · answer #2 · answered by Polymath 5 · 0⤊ 0⤋
Same as everything else. People have unfortunately failed to associate price with actual usefulness.
We've been told it's expensive - so it is. People will pay a lot for it - so it's expensive.
On the other hand, scarcity determines cost - diamonds are RARE. Diamond is also the hardest substance known.
Almost forgot, It makes women happy (no easy task) - it must be really valuable.
2006-08-02 10:40:48 · answer #3 · answered by JFK 2 · 0⤊ 0⤋
Because you are purchasing them at the wrong places. Travel to Qatar or Kuwait in the Middle East. You can get diamonds cheap, and nice ones too. You can also purchase 24K gold pieces for very cheap as well. Some of the vendors over there do have websites as well, but you will have Google that for yourself.
2006-08-02 10:35:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The DeBeers diamond cartel. They supply approx. 80% of the world's diamond supply. They keep supply down, therefore increasing the prices.
read more @
http://www.mises.org/freemarket_detail.asp?control=5&sortorder=articledate+onmousedown=return+rwt(this,
2006-08-02 11:50:03 · answer #5 · answered by escapegrl1 3 · 0⤊ 0⤋
diamonds are expensive because there's a big demand for diamonds.
If the demand was smaller then the price would be cheaper.
2006-08-02 10:33:57 · answer #6 · answered by michelle j 1 · 0⤊ 0⤋
Supply and Demand
2006-08-02 16:15:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Because people continue to buy them despite the high price.
2006-08-02 10:39:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Because they are almost all controlled by one person that only releases a certain amount so they hold their value. They are not rare.
2006-08-02 10:33:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋
That's a really good question, I mean it's just a stone.
2006-08-02 10:33:59 · answer #10 · answered by Anonymous · 0⤊ 0⤋
(no profanity please)
A:
their role in popular culture
the rarity of natural ones
people think they're pretty
2006-08-02 10:34:55 · answer #11 · answered by elitetrooper459 3 · 0⤊ 0⤋