> Fashions change, yet people believe that diamonds have permanent value ('is forever'). In contrast to bullion, this is relatively recent development with little ties to traditional banking practices
No, actually diamonds (and other gems) have had artistic/cultural/symbolic value for as long as civilizations have existed. I.e. the "crown jewels", the "hope diamond" and more: http://en.wikipedia.org/wiki/List_of_diamonds
They simply do wonders with light and are aesthetically pleasing when well cut. Not to mention they are incredibly hard to destroy.
No, actually diamonds (and other gems) have had artistic/cultural/symbolic value for as long as civilizations have existed. I.e. the "crown jewels", the "hope diamond" and more: http://en.wikipedia.org/wiki/List_of_diamonds
They simply do wonders with light and are aesthetically pleasing when well cut. Not to mention they are incredibly hard to destroy.