Will Diamond Production Last Forever? The Bleak Future Of The Gem's Industry

Diamonds are not a millennial's best friend. The rare gem that one day became a symbol of commitment, eternal love, and above all, status, could be near reaching its peak. Even if the industry has reason to celebrate after the recent finding of the Canadian mine Gahcho Kué, called “an astonishing endeavour, the biggest new mine in the world in over a decade,” euphoria will not last long. Because it might be the last one.

In the age of shared economies, in which, for many, money is better spent on experiences than on outdated luxury goods, the idea of “spending two months' salary”- as the iconic advertising of De Beers, the leading diamond company, claimed - does not seem quite so appealing. Not only that, but the link between diamond production and conflicts in several African countries is not easy to erase, even if the Kimberley Process has partially improved ethical mining. A diamond is forever, but it seems that so is a bad reputation. Plus, synthetic diamonds are gaining presence, sponsored by Leonardo DiCaprio under the slogan, "Our products are as solid as your values."

In this situation, the gap between demand and supply might cause a plummeting of prices.  This article explains fairly well the logic behind luxury goods: higher prices support demand. The opposite could be the beginning of the end.