
Has Technology Killed the Jewelry Industry? - diodorus
http://www.psmag.com/nature-and-technology/tech-killed-jewelry-industry-97335
======
jordan0day
My gut reaction is: Let's hope so, and if it has, _good riddance_.

Obviously, though, tech _has not_ killed the jewelry industry. Jewelry suffers
from being the fashion industry at it's most reductive: all form, no function.
That is, we all gotta wear clothes, nobody's gotta wear jewelry. There's
probably quite a few cultural changes all hitting the jewelry industry at
once: people are marrying later in life than they used to, it's taking younger
people longer to become financially stable than it used to, and what counts as
a _good gift_ isn't what it used to be -- the article itself says as much:

"But it’s not all Kindles and iPhones; according to the De Beers report,
millennials are choosing to spend their dollars on experiential activities
over luxury goods as well."

~~~
wyager
> That is, we all gotta wear clothes, nobody's gotta wear jewelry.

Well, strictly speaking, we don't usually have to wear clothes. In the modern
urbanized lifestyle, clothing serves almost no important function during warm
weather. The main reasons I wear clothing during warm weather are social and
legal pressure, not pragmatism.

~~~
mc32
Well there are also aspects of sanitation and safety (a layer of protection
between you and environment) and also protection from overexposure to UV. So
it's not only social mores.

~~~
wyager
I don't buy that at all. The parts of our bodies we traditionally cover with
clothing aren't actually any more bacteria-ridden than the rest of us, and we
already pick up and spread a ton of infectious agents through our hands. I
doubt, for example, that sitting down naked on an NY subway chair is any worse
than grabbing an NY subway pole without a glove on.

~~~
spullara
Considerably better even, since you are unlikely to touch your face with your
bum.

------
nibornarod
Diamonds are mentioned a lot in the article, as is the birth of the jewellery
industry post WWII.

I think its become a lot easier to discover that diamond scarcity and
intrinsic value is artificial and was pushed by De Beers, who have global
dominance in the market, to create a industry especially around engagement
rings.

I'm not surprised demand is dropping, we have better information and more
choice now.

I like this article on the the diamond cartel mainly because it was written in
1982 and shows how long this has been relatively common knowledge -
[http://www.theatlantic.com/magazine/archive/1982/02/have-
you...](http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-
tried-to-sell-a-diamond/304575/)

~~~
kbart
Exactly. I'm actually surprised that an overpriced piece of mineral managed to
keep such high value for so long. I would seriously doubt person's
intelligence if he/she bought something with diamonds (unless that's for
industrial use).

EDIT: rock -> mineral

------
jedberg
I assumed this would be an article about there being a much more even playing
field wrt information about pricing.

Back in the day, if you wanted a diamond, you went to one of a few local
jewelers and that was your choice. Now you can order from the internet.

However, unlike most other industries disrupted by internet information
sharing, a jewelers entire business model was predicated on them knowing more
than you, which is now lost.

However, the article makes a good point. All the millennials I know care a lot
more about their phones than their rings and earrings.

~~~
wtbob
> However, the article makes a good point. All the millennials I know care a
> lot more about their phones than their rings and earrings.

Which is a little funny, since after the initial drop in value I bet a decent
jewel beats a phone after, say, 4 years.

~~~
jedberg
Have you ever tried to sell a used diamond? :)

Their value drops precipitously. Probably not quite as bad as an iPhone, but
pretty close.

~~~
zaroth
How can a diamond be "used" anyway? The way I think of it, you have wholesale
and retail markets, which I completely understand (profit through information
asymmetry) but is there really something stopping the same diamond from being
sold wholesale and retail dozens of times as long as it's not _damaged_?

~~~
TeMPOraL
> _is there really something stopping the same diamond from being sold
> wholesale and retail dozens of times as long as it 's not damaged?_

Yes. Tradition. You just don't sell diamonds, period. It's completely
arbitrary - that's why it took DeBeers decades to firmly establish it within
society in the past century. See the 1982 article every other poster links to.

~~~
zaroth
If buyers had a choice of the same stone at a much lower price, they would
take it. It sounds like a massive arbitrage opportunity.

------
Tiktaalik
Could the growth of hobbyist makers creating jewelry for sale at craft fairs,
Etsy, and small lifestyle shops be the main reason for decreasing traditional
jewelry industry sales?

These types of jewelry are what I see all my friends wearing. They're pretty,
interesting and of artistic merit, but they're not often not made of terribly
valuable materials, and so they're not very expensive.

------
zaroth
If jewelry was priced, sold, and resold efficiently (which is becoming more
true over time) then unless you break it or lose it (and for that there's
insurance) then it's just another store of value.

The few diamonds I've ever purchased, I've done through eBay. GIA certified,
laser inscribed, and then verified under a loupe upon receipt. It was not a
pleasant experience, but it was worth the considerable hassle. I took them to
my jeweler to set them and he was blown away by the price I paid. He
immediately asked for the sellers info, claiming that he pays more. Maybe an
act, I don't know.

Jewelry _stores_ going out of business is very different from the jewelry
_market_ going out of business. I think a surprisingly large amount of the
market is being redirected to private purchases. Costume jewelry is also a
fast growing market and is driving the growth of a lot of startup
marketplaces.

I think a diamond can be damaged, but it cannot be "used". In fact,
documenting the history of a diamond (a neat business idea) can only possibly
enhance the stone's value.

~~~
ismail
"then it's just another store of value"

I agree with this if the Jewellery in question is pure gold 21k and the like.
Diamonds however, i do not believe to be a store of value.

Ever try selling a diamond back after a few years? I doubt you would get back
the price you paid for it.

Gold however, can be easily sold back. Dealers will pay you at the going rate
of Gold per gram, or maybe at a slight discount.

"I think a diamond can be damaged, but it cannot be "used". In fact,
documenting the history of a diamond (a neat business idea) can only possibly
enhance the stone's value."

Interesting idea, think it may have some value for people who want unique
stories to tell.

------
LargeWu
Maybe people are starting to catch on that gemstones are big fucking scam. The
entire value proposition of gemstones and precious metals is scarcity, which
is artificially controlled by cartels like De Beers.

------
wallflower
I know a couple people who work in the jewelry industry. More modern jewelry
shops have teams of designers who work in 3D modeling software (the dongle-
required class) all day to produce ring designs. Some designs are produced
white-label for larger, more well-known "brand name" jewelry retail chains. It
is better to say that technology has changed the jewelry industry, like every
industry.

That being said, in the Diamond District in NYC, multi-million dollar
transactions are done informally with verbal contracts. Some things never will
change.

~~~
adamnemecek
The article is more about the consumer side than the producer side of the
jewelry industry.

------
aestetix
I think it's amusing that the author does not think iPhones are a fashion
statement. :)

------
ivv
A lot of it has to do with demographics. Fewer people are getting married, and
those who do, get married later in their lives. The engagement ring is usually
only the first of the many jewelry purchases you make -- a lot more come after
you get married. The car industry has a similar problem -- married people are
the ones who become owners of homes in the suburbs, which often requires two
cars to get around.

------
ripberge
I don't see much difference between jewelry and any other business that's been
disrupted by Internet commerce. Except maybe women have a stronger place in
society now and they care less about jewelry for their self worth (pure
conjecture)?

One jeweler interviewed for this article is surprised people would go online
and buy diamonds site unseen from Blue Nile. Having just done this dance
myself, walking around the diamond district LA (and getting referrals from
friends) I would not trust most of the jewelers there further than I could
throw them. I would be more inclined to trust publicly traded Blue Nile that I
was getting what I paid for.

------
coralreef
I wonder if this is true for china

------
djoshea
This seems to follow Betteridges' Law. No coherent argument made for the case
that there's any interaction between tech and jewelry. Intuitively, I think
the Millenial generation cares less about ways to show material wealth, so
that extends to cars, jewelry, clothing, etc...

~~~
jordan0day
> Intuitively, I think the Millenial generation cares less about ways to show
> material wealth

I want to believe that, but, you know, "millenials" are still human beings,
too. I'm going to err on the side of them being just as vain as the rest of
us...

Rather, the article mentions that millenials are more inclined to spend money
on "experiences" than shiny baubles -- but thanks to social networks,
experiences _are the new shiny baubles_. And even more effectively so: In the
past, when your s/o dropped a months worth of pay on jewelry for you, you
could still only show it off to people you saw in-person. Now, when your s/o
pays for you to go on vacation, you have status updates and photo sharing to
show everyone you've ever known just how conspicuous your consumption is.

All that said, I know I've read articles that state (and it certainly seems
reasonable) that people who spend their money on experiences rather than
material goods tend to be happier. So maybe it's overall a net positive.

------
bhousel
Yes, because nobody wears jewelry anymore.

------
marincounty
"What changed!"= Blood Diamonds in my world, and the realization that
certification means nothing in most instances, and I still remember the
microscopic stone my brother was talked into under the stress of shotgun
wedding.(Brother I still feel your pain) As to gold jewelry, I don't know, but
I think younger people will realize the value in a gold mechanical watch--that
with the right care will last a lifetime. I didn't appreciate fine mechanical
watches until I was 40. With a lot of diligence it is possible(some people) to
do your own repair, cleaning and oiling of their own watches. It's a good
feeling looking down at your wrist knowing you can repair it if it breaks
down. If women are interested in mechanical watches they are practically
giving them away in the used market market. The gold ones are literally
selling for scrap value.

~~~
thaumasiotes
"Buy a mechanical watch!

It will cost you significantly more than a lifetime supply of quartz watches.

It will require more maintenance than a quartz watch.

And it will _keep less accurate time_."

Where's the value?

~~~
TeMPOraL
> _Where 's the value?_

Lasts a lifetime. Which means it:

\- acquires sentimental value; it can be passed on to children, and then to
grandchildren

\- doesn't tie you to the economic system that much - you bought it, you have
it, you don't need to go and buy a new one every year

\- doesn't generate so much waste; lets you refuse participating in the waste-
generation system

\- still a much better value store than diamonds

~~~
thaumasiotes
All of that, including "a better value store than diamonds", is true of a
cinder block. But you don't see people congratulating themselves on how they
savvily bought one of those.

