Grey Thoughts
Science - Diamonds may be a bad investment
With recent news announced on Science New Daily, it appears that the cost and time of producing high quality, large diamonds in the lab is decreasing rapidly. From the news release
"High-quality crystals more than three carats are very difficult to produce using the conventional approach," said scientist Russell Hemley, who leads the diamond effort at Carnegie. "Several groups have begun to grow diamond single crystals by CVD, but large, colorless, and flawless ones remain a challenge. Our fabrication of 10-carat, half-inch, CVD diamonds is a major breakthrough."

Clearly, in the not to distant future diamonds will become cheap and common. What will people buy for engagement rings then?
I wish I could agree with the statement: "in the not too distant future diamonds will become cheap and common."

10 years ago, I read a book, The Rise and Fall of Diamonds by Edward Epstein (1982), that predicted the same thing. And that was after huge diamond mines were discovered in Canada and Russia and GE developed the technology to manufacture them.

Diamonds keep holding their value because whether they are discovered or manufactured, no one wants to flood the market and depress their value.
Good point. I guess it depends on the cost of production and whether they can be produced by anyone or have a patent restricting production.

However, if there is no patent and the cost of production of high quality diamonds come down, then competition should ensure they get a lot cheaper
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