To reach a critical mass of believers in diamonds for wealth preservation, Ehud believed it was also essential for the industry to recalibrate its marketing efforts.
"Consumer demand has fueled the diamond industry from the 1930s to today. It is, in fact, the near-exclusive engine of the diamond industry. I envision a diversification in the revenue sources for diamonds: demand driven by consumers, as we have today, plus demand from what can broadly be called a financial market: the traditional financial markets with their institutions and investors, as well as private people, who want to buy a diamond with an understanding of its economic importance. This last group, I hope, will not consider diamonds an expense, but rather an asset."
Ehud believed that the shift in thinking of a diamond as an asset instead of an expense requires a similar shift in the industry's marketing efforts.
"For decades, the "a diamond is forever" slogan by diamond mining giant De Beers was the generic diamond marketing campaign. [I]t was the only generic marketing campaign."
"Marketing requires two different approaches working in parallel: ongoing promotional activity for diamonds in general and promotion of the idea of diamonds for wealth preservation purposes in particular."
"We believe that the industry can be re-invigorated by communicating an important, but often-ignored fact: Diamonds are themselves a physical asset, whose value has historically increased steadily and consistently over time. This revision to the industry's marketing message will help to change people's view of diamonds as an expensive extravagance, and remind them that diamonds are actually an investment with romantic utility."
Marketing diamonds for wealth preservation is an industry-wide effort, similar to the marketing efforts required to stimulate consumer demand for diamonds. In previous insights blogs, Ehud suggested practical ways to achieve this.
"It is incumbent on this and other organizations to support the industry with universal marketing of diamonds as an eternal symbol of love and an asset which offers a potential additional path for wealth preservation in the long run. This must be done in the most transparent and clear way possible, to help consumers see past some of the recent challenges in the industry, and move forward to prosperity."
Revitalizing Diamond Marketing Efforts
How Wholesalers Market Their Polished Diamonds
Marketing the Case for Rarity