by Edward Jay Epstein. The success of diamonds in modern society is really the triumph of marketing. I've never really understood why people follow certain rituals like diamond rings for engagement but then again there are many norms that make no sense to me. What fascinates me is taking something that is unnecessary to a given by manipulating how people feel and give them an illusion to aspire to. I remember being at a dinner a few years ago when one guy told another guy he hadn't spent enough money on the ring he gave his fiancee. I just sat there laughing in my head but then it dawned on me this social proof aspect to diamond engagement rings creates a great deal of pressure on people. The same amount of money could be allocated to something else. Most of this conspicuous consumption is geared towards a signaling mechanism to other people to say we are superior simians.
Then, in 1967, halfway around the world, a South African diamond company decided to change the Japanese courtship ritual. It retained J. Walter Thompson, the largest advertising agency in the world, to embark on a campaign to popularize diamond engagement rings in Japan. It was not an easy task. Even the quartering of millions of American soldiers in Japan for a decade had not resulted in any substantial Japanese interest in giving diamonds as a token of love.
The advertising agency began its campaign by subtly suggesting that diamonds were a visible sign of modern Western values. It created a series of color advertisements in Japanese magazines showing very beautiful women displaying their diamond rings. The women all had Western facial features and wore European clothes. Moreover, in most of the advertisements, the women were involved in some activity that defied Japanese traditions, such as bicycling, camping, yachting, ocean-swimming and mountain-climbing. In the background, there usually stood a Japanese man, also attired in fashionable European clothes. In addition, almost all of the automobiles, sporting equipment and other artifacts in the picture, were conspicuous foreign imports. The message in these ads was clear: diamonds represent a sharp break with the Oriental past and an entry point into modern life.
The campaign was remarkably successful. Until 1959 the importation of diamonds had not even been permitted by the postwar Japanese government. When the campaign began in 1968, less than 5 percent of Japanese women getting married received a diamond engagement ring. By 1972 the proportion had risen to 27 percent. By 1978, half of all Japanese women who were married wore a diamond on their ring finger. And, by 1981, some 6o percent of Japanese brides wore diamonds. In a mere thirteen years, the fifteen-hundred-year Japanese tradition was radically revised. Diamonds became a staple of the Japanese marriage. And Japan became, after the United States, the second largest market for the sale of diamond engagement rings. It was all part of the diamond invention.
The diamond invention was an ingenious scheme for sustaining the value of diamonds in an uncertain world. To begin with, it involved gaining control over the production of all the important diamond mines in the world. Next, a system was devised for allocating this controlled supply of gems to a select number of diamond cutters who all agreed to abide by certain rules intended to assure that the quantity of finished diamonds available at any given time never exceeded the public's demand for them. Finally, a set of subtle, but effective, incentives were devised for regulating the behavior of all the people who served and ultimately profited from the system.
The invention had a wide array of diverse parts: these included a huge stockpile of uncut diamonds in a vault in London; a billion-dollar cash hoard deposited in banks in Europe; and private intelligence network operating out of Antwerp, Tel Aviv, Johannesburg and London; a global network of advertising agencies, brokers and distributors; corporate fronts in Africa for concealing massive diamond purchases; and private treaties with nations establishing quotas for annual production.
The invention is far more than merely a monopoly for fixing diamond prices; it is a mechanism for converting tiny crystals of carbon into universally recognized tokens of power and romance. For it to ultimately succeed, it must endow these stones with the sort of sentiment that would inhibit the public from ever reselling them onto the market. The illusion thus had to be inculcated into the mass mind that diamonds were forever-- "forever" in the sense that they could never be resold.