There is no doubt that the most expensive mineral on planet Earth, given its value by weight and size - is the Diamond. It came to prominence in 1866 when a farmer's son picked up a curiously glistening stone on the banks of the Orange river in South Africa.
At that time the British genius colonizing South Africa was Cecil Rhodes and he was astute enough to realise that diamonds would only hold their value if they remained rare. In 1888 Rhodes founded De Beers, the company that persuaded diamond miners to channel their product through this venue so that the quantity going to market could be controlled.
Diamonds are amongst the oldest minerals on earth. They formed more than a billion years ago between the crust and the molten interior of the planet where the pressure was high enough and the temperature low enough for carbon to form into the stone that gives light its brilliance.
For more than a century De Beers was the controlling force in the diamond trade. It carefully regulated the flow of these gems to the cutters and polishers who predominated in Antwerp and London and its hand on the flow pipeline was legendary. Buyers were ushered into a sealed room and handed a velvet envelope containing precisely the stones that D Beers was offering for sale - and the price that they would charge for each stone. They were free to reject individual stones, but they also realised that De Beers totally controlled supply and should they offend, next time they may be offered far fewer stones - or none at all.
De Beers used its monopoly wisely. Its advertising linked this glistening stone with the world of romance. Its marketers created the image of the diamond riding on the finger of the left hand of young women consenting to become someone's wife - and even a rigid protocol was established as to the cost. It became accepted that such a ring should cost two months pay to be acceptable and the memorable slogan " Diamonds are Forever " came into vogue. This custom swept the western world and by 1939 ten percent of brides received a diamond engagement ring on betrothal - and by the end of the century this had increased to eighty percent.
By the 1990's De Beers grip had began to loosen. More was understood about how Diamonds are formed and new strikes were occurring in Canada, Angola, the Soviet Union and Australia. The natural gem was also under pressure from commercially produced diamonds, which were fast reaching similar quality. Diamonds were also finding an increasing market in industrial uses and a huge scandal in Africa tarnished its image. Rebel armies were enslaving villagers to mine diamonds and selling them on the open market to finance their wars. The movie " Blood Diamond " caused some people to distance themselves from these precious gems.
Today, the former control levered by De Beers has disappeared. More diamonds are finding their way to market and obviously that old maxim of over supply is causing prices to drop. Unemployment and a lowering of wages may change many interests, but it still seems that many young women dream of that sparkling stone that they hope one day may adorn a finger on their left hand.
How De Beers orchestrated a custom that spread across the western world - and which may yet find resonance in a fast emerging Asia - is probably the classic example of a great marketing strategy. It also illustrates how linking a product with romance created a custom that has survived for more than a century. Something that today's marketing people may ponder !
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