Buy Your Engagement Ring Now? Diamond Supply May Run Out
Apparently, a diamond isn’t forever. De Beers, one of the biggest names in diamond mining, just announced that the company would slow production so they basically don’t rape the world’s natural resources. Explains Gareth Penny, managing director for De Beers, “Diamonds are a treasure of nature that should be properly protected, because there will be less to sell. The reality is that supply cannot keep up, and that will become very accentuated over the next 15 years.” At the moment, the company’s largest sources are in Africa and Russia. In case you’re wondering, yes, De Beers has been involved in the “blood diamond” business, but now states that all diamonds are conflict-free. The retailer has also suffered a nasty image blow from its supposed dealings with tribes in Botswana, who have gotten pushed off their territory.
So what will happen if diamond miners take everything the earth can offer? A huge supply-demand imbalance and high prices. What’s unclear is whether slowing production will actually work to preserve resources. Because, um, diamonds don’t exactly grow on trees. [CNN]