> My conclusion is that people who wants diamonds want simply something expensive, as status symbol. They don't want a shiny rock at the most reasonable price, otherwise, it wouldn't be a status symbol anymore.
Right, until recently, it's been a hard to fake McGuffin. A small, highly portable thing you can point at to demonstrate wealth (or the appearance of wealth).
Destroying the diamond's ability be "prof of disposed funds" will be an unmitigated good for humankind. Only the louts in the diamond business will suffer, in proportion to how deeply they are tied to the vicious evil aspects of the enterprise.
Joshua Gans suggests setting up a way in which people can flaunt the fact that they've paid a very large amount of tax, as a way of taking this impulse for a status symbol and turning it to a positive social end. http://economics.com.au/?p=9958
Right, until recently, it's been a hard to fake McGuffin. A small, highly portable thing you can point at to demonstrate wealth (or the appearance of wealth).