It is far cheaper to produce a diamond in a factory than it is to extract one from the ground. Diamond prices are dropping accordingly. How much? De Beers’ revenues have dropped by a third over the past two years. At one large jewelry retailer, prices of “lab grown” diamonds are just 25% of those for “natural” diamonds. According to The Economist, that declining price trend will continue:
“Lab-grown diamonds … are both more common and indistinguishable from a mined rock. Their availability is not limited by what was formed billions of years ago in the Earth’s crust, nor by the desire of miners to spend lots of money to extract them, but by what sellers find profitable. Wholesale synthetic-diamond prices have fallen by 90% over the past six years, according to Paul Zimnisky, a diamond-industry analyst, meaning that rocks can now be sold at much lower prices for similarly strong profits. And wholesale prices are set to keep falling as manufacturing techniques continue to be refined and competition between manufacturers intensifies.”
Sorry, McKinsey, government consulting contracts may not be forever either.
The new administration in Washington believes that the US government has not been operating efficiently. Hence the creation of the new DOGE department. If one follows that logic, then it stands to reason that the government-related work of various consulting firms, like McKinsey, Booze Allen, and Accenture, has not been effective. Certainly not worth the $18B the government spent on such consultants last year. Could this be the end of the DC consulting gravy train?
Not sorry, Liverwurst. You are no longer a “forever” deli staple.
Like the travails of De Beers and McKinsey, few will mourn the downfall of liverwurst. A sausage made from liver, liverwurst was once considered the lunch sandwich equal of ham, roast beef, or turkey. No longer. Boars Head, a leading US supplier of deli meats and cheeses, discontinued its liverwurst production last year. Nobody protested. Can spam be far behind?
After all, nothing is forever.
Peter has spent the past twenty-plus years as an acting/consulting CFO for a number of small businesses in a wide range of industries. Peter’s prior experience is that of a serial entrepreneur, managing various start-up and turnaround projects. He is a co-founder of Keurig.
