Are diamonds expensive because they are rare?

Jarrod Dietrich asked a question: Are diamonds expensive because they are rare?
Asked By: Jarrod Dietrich
Date created: Sun, Apr 11, 2021 11:03 AM

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Those who are looking for an answer to the question «Are diamonds expensive because they are rare?» often ask the following questions:

👉 Are diamonds rare and expensive because of real market forces?

Diamonds are only valuable because of market demand, they aren't rare either... Real GME shares however...

👉 If diamonds aren't rare why are they so expensive?

Diamonds are not particularly rare. In fact, compared to other gemstones, they're the most common precious stone found. Generally, the cost per carat (or weight of a gemstone) is based upon a stone's rarity; the rarer the stone, the more expensive.

Question from categories: gemstones blue diamond pink diamond colored diamonds gold

👉 Are diamonds so expensive because of debeers?

  • Believe it or not but the only reason why diamonds are considered special, rare, and expensive is that they were marketed very well by De Beers. Diamonds are one of the hardest naturally occurring substance found on Earth and serve two main functions today: jewellery and industrial uses.

10 other answers

MYTH #1: Diamonds are expensive because they’re so rare. Diamonds are not particularly rare. In fact, compared to other gemstones, they’re the most common precious stone found. Generally, the cost per carat (or weight of a gemstone) is based upon a stone’s rarity; the rarer the stone, the more expensive.

Diamonds are not rare, they are just expensive.This is because of the great diamond marketing campaign by De Beers - A Diamond is Forever

One of the biggest myths around diamonds is that because they are rare, they are expensive. This is not true, and in fact, a clever marketing strategy. Are diamonds actually rare? You may have heard of the De Beers corporation who, at one point in time, controlled around 75-85% of the diamond supply.

Diamonds seem expensive because we often don’t compare them to other gemstones. And that’s not the only reason. Products in the economy are valued by their demand, but sometimes rare gemstones are more expensive because, well, they are rare. The story with diamonds is much different.

1) Diamonds are expensive because they possess a meaning that has been cemented by time and beliefs. 2) The market demand for diamonds is very high. 3) Diamonds are a symbol of uniqueness and rarity. 4) The costs surrounding the mining and cutting of diamonds make them expensive.

You may be surprised to find out (as I was) that most of the diamonds mined from the earth’s surface are rarely good enough in quality to be used in the making of jewelry. This rarity in find makes them relatively more expensive.

However, please note that pure red rubies are so rare there is no trade data available. The ruby prices listed are for Burmese rubies. As you can see, while costly, diamonds aren’t the most expensive gem in any size. If you compare diamonds with gems based on other qualities, you’ll get similar results.

Fancy diamonds are pricey because they are extremely rare. Why There are Highly Expensive Diamonds The natural color of a diamond is the tint of color the stone has as it develops. While there are clear or white diamonds, there are a few, rare fancy diamonds that interact with various materials and gases.

Also, certain diamonds actually are rare. Many colored diamonds are less common than their clear counterparts and they sell for a high price because of it. Red, blue, pink, orange, and green are all colors that appear naturally in diamonds but are not very common.

Because they are less rare, yellow diamonds can cost much less per carat than other colored diamonds. Some light yellow diamonds can even cost less than a colorless diamond of similar size. On average, you can expect to pay $3,000-5,000 per carat on a yellow diamond of decent clarity and color.

Your Answer

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Are diamonds artificially rare?

Yes, and no. Your answer depends on the 'diamonds' you reference. Diamonds are rare in their occurrence on earth. When mined, only about 20% of the diamonds are gem-quality. Most people do not know about the other 80%, the industrial diamonds. Some have said that 'there are enough diamonds in the world to give every person half a cup full' -- or other analogy, to give the impression that indeed diamonds are not rare. Given the 80/20 rule, there would not be many gems in the half-cup. Most gem-quality diamonds are about the size of a garden pea. This means that larger stones, stones with extraordinary clarity or colour become extremely valuable -- because they are more rare. It is the larger, more colour-ful stones that lend credence to the 'value of diamonds'. Some large and coloured diamonds have sold recently for multiple tens of millions of US dollars. As well, you can probably purchase a half-pound bag of industrial diamonds for about the price of a latte.

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Are colored diamonds more rare?

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Are diamonds more rare now?

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Are diamonds rare in 5e?

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Why are diamonds considered rare?

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