Diamonds and crypto collision – an unavoidable financial big bang

Ronen Shnidman

To proclaim such a bold statement as that stated in the headline, one must first describe the elements of the theory and portray the different layers methodically as if standing in front of an esteemed Grand Jury. This ensures that all the parts of the story match perfectly as not to create a false big bang theory.

My testimony will begin with analysis of my beloved diamond industry; after all, what better evidence is there than a confession? It is premature to explain the macro evolution of diamonds, how the single most important carbon on earth disguised its powers only to be set in a golden ring of illusion. No, I will leave that for a later stage. For now, I will address the sad reality of the diamond supply chain: about why the rarest and most priceless commodity has to be sold through deception, empty jewelry shops, multiple labs and intense advertisements.

When we fill our car with gasoline, we do not stop to wonder for a second about its current commodity price value, although it’s available. We recognize that there are taxes and profits for the gas station, so we fill up, wave goodbye and drive off. When we buy gold jewelry, most people will not stop to think about the price of gold on the commodity markets; they will somehow accept the gap element, wave politely and buy. But when it comes to diamonds, when it comes to buying their once-in-a-lifetime piece of eternity, is that the case? Will consumers, knowing the real market cost of each diamond, just purchase, depart and say goodbye and go and get married? The answer is no. Price transparency for the diamond industry means a loose serial killer for the jewelry retail market! And for a global industry relying on sentiments and slogans such as ‘Diamonds are a woman’s best friend‘, this means, frankly, that Houston, we have a problem!

To summarize the first half of our big bang theory, probably the bang, the diamond industry, in its quest to conceive from consumers the real market value of their diamonds, launched into an endless ongoing campaign of routine misses which are on the verge of deception. Eventually, the most transparent element on earth, the essence of light formation, has fallen captive in a dark hole.

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Source Idexonline