If you are a jewelry lover or collector, you probably have or thinking of buying something beautiful with diamonds in it. But beauty comes with a hefty price and the value of diamonds is the perfect thing that justifies this statement. Have you ever wondered, why are diamonds so expensive?
Diamonds are expensive. They cost more than platinum or gold, or even the world’s most famous watches. A lot more, actually. But ever wondered what makes diamonds so expensive?
Why does diamond cost more than other precious naturally occurring metals? Is it because diamonds are rare? Answers to all these questions will be discussed in this guide.
In this blog, we will discuss some of the reasons why diamonds are so expensive and if diamond really is a rare metal.
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Why are Diamonds so Valuable?
There are many reasons why diamonds are so costly. The difficulties in mining, the rarity, durability, cut, and carat of diamond makes them more expensive than other metals. The psychological beliefs, demand, history, and its advertisement are some other reasons that make diamonds expensive.
Though not all diamonds are expensive, only those that are used in jewelry are expensive.
Only a few percentages of mined diamond stones match the standard gem quality that is required for jewelry. And that’s what makes diamonds so costly.
Why Diamonds Are So Expensive
Mining Difficulties
Diamonds are naturally formed in hot, high pressure beneath the earth’s surface, and extracting the diamonds from that place is an extremely complex and expensive process.
Mining requires the usage of heavy machinery, trucks, shovels, and other expensive equipment. The equipment and machinery are used for transportation where diamonds are actually extracted.
Once the diamonds are extracted, they are sent to a diamond cutter to cut, polish, and get ready for sale. The mining, cutting, and polishing of diamonds is a complex and time-consuming task.
The complexity of the entire procedure affects the price of diamonds.
Rarity
Diamonds in general are not rare. The high-quality diamonds that are mostly used in jewelry pieces are rare. Only a few percent of diamonds that are extracted all over the world can be used for jewelry purposes.
The rarity of diamonds makes them the most expensive metals in the world.
Durability
Diamond is ranked as one of the hardest minerals in the world. It is nearly impossible to break or crack a diamond.
This incredible durability is what makes diamonds one of the most expensive gems in the world. Diamonds last much longer than any other gemstone and that’s the reason they are so valuable.
Cut
Diamonds are cut from the larger diamond and precision of cut can affect their value. A precisely cut diamond will be expensive while a mis-proportioned cut reduces the value.
Diamond is available in multiple shapes such as round, emerald, princess, heart, pear, cushion, and more.
However, the shape of the diamond doesn’t affect the price but the quality of the cut definitely does.
Popularity
Another reason why diamonds are so expensive is that it is the most demanded and popular gemstone. They are seen as a status symbol.
Diamonds are a great way to show others how well you are doing in life.
Diamonds are not just popular in the USA. People all over the world love diamonds.
Manipulation by De Beers
When a mining company called, De Beers found the treasure of diamonds in the city of Kimberley they soon realized that it would decrease the value of a diamond.
To prevent the same, they marketed their products in a way that they are rare and released diamonds only in small batches.
They advertised the diamonds as the perfect gift of love and hence increased their market value.
De Beers still owns the credit of running the most effective marketing tactic for increasing the value of diamonds. Because of that, diamonds even today are seen as the biggest investment.
Are all Diamonds Expensive?
No, not all diamond stones are as pricey and expensive as the ones you see in the jewelry stores. Most of the diamonds found in nature are faulty and full of imperfections.
In fact, there are only 30% of diamonds pass the gem-quality standard.
The diamonds that pass the quality standard are used for making jewelry pieces. The diamonds that are of acceptable quality are rare which makes their demand and price go up.
Low-quality diamonds are used for industrial purposes as part of tools and are relatively cheaper.
What Color Diamonds are More Expensive?
When it comes to diamond colors and their cost, the colorless the diamond is, the higher the value will get. The color is graded based on the GIA D-Z color grading system.
The diamonds that receive the grade D are the most colorless, and hence most expensive. And with each next grade, the quality of the diamond gets lower and so is the price.
The grade of the color isn’t the only factor that affects the cost of the diamond. The rarely of color also affects the price.
For example, there are only a few red color diamonds available in the world. This makes them the rarest diamonds and most expensive diamonds. Blue and pink are the next rarest diamonds.
Bottom Line
The price of diamonds varies as per their rarity, cutting, and many other factors. In short, not all diamonds are expensive.
We are sure the next time you decide to go and buy diamonds you will make a wise choice. You will find no trouble in finding the diamond that fits your budget.
