Reports out of Africa indicate problems for a cherished product: diamonds. Since the discovery over 120 years ago in South Africa, diamonds have been marketed and sold worldwide. The natural product has had imitations come and go without much effect on prices of the natural material.
Years ago, Botswana got in the game and bought 15% of De Beers, the mono[oly that vreated the diamond retail industry. In Botswana, mining occurs in alluvial deposits sitting on the western edge of the African continent. De Beers partners with the country and supplies almost 30% of GDP of the government. But now, things are different. machines have been developed that provide laboratory created diamonds, exactly as their natural brethren from deep underground. The products have entered mainstream retail outlets and have delivered a severe body blow to the entire diamond chain:from mine toTiffany's.
What will happen to this culture of beauty and rarity? Can we compare it to other disruprtions? Of course. When this happens, things change, often rapidly. Why would somebody spend big money for something that is equivalent to a lab grown substitute? Hmmmm. The times are a changin'. The machines are even better today than just a few years ago; The machines are making crystals bigger, better, and faster than the machines did 3-5 years ago. Prices are plummeting faster than discounted airline tickets. Will jewelry . Of course. All those Mall jewelers will be gone replaced by a kiosk with a touch screen menu and a buyer will tap his preference and catch the order down the chute. Good bye, Tiffany's, Hello, DoorDash/Uber/AirBnB. Ahh, technology, will save you big bucks.
And all those miners working for DeBeers? Unemployed. In Russya, same: unemployed. Canada: same: unemployed. Brazil-same: unemployed.
Have a nice day.
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