Why are diamonds so expensive?
This is a multi-part question which can be addressed by two answers, the first being "No they're not", the the second being "Yes they are". This paradox has stymies most people interested in investing in diamond or diamond jewelry for a very long time. So allow me to shed some light on the paradox. For the sole purpose of my answer, Diamonds essentially comes in two grades, the first being Gem Quality / Jewelry Grade Diamonds, the second being Industrial grade diamonds. Since not all diamonds mined, are not sufficiently beautiful nor precious enough to be used for jewelry, it can quite comfortably be said that as little as 30 percent of all diamonds mined are suitable enough for Jewelry, whereas 70 percent of all mined diamonds known as bort or boart and are used for industrial applications.
In a nutshell, Industrial grade diamonds look ghastly in their raw form, because they have no luster, internally contain excessive un-crystallized carbon dots and flaws, and are normally discoloured and small. Since Diamond is the hardest substance on earth with the highest thermal conductivity characteristics of any type of material at room temperature, it is ideally suited for an incalculable amount of industrial applications. Besides diamonds also have chemical, optical, and electrical properties ideally suited for manufacturing hard-wearing and corrosion-resistant coatings, lenses for laser radiation equipment. Industrial diamonds are predominantly used for abrasives, drilling, cutting, grinding and polishing, among which is polishing silicon wafers and computer disk drives.
While as much as 70 percent of all diamonds mined turns out to be industrial grade diamonds, it only represents a mere 3% of the all diamonds used by industry and the remaining 97% is full filled by synthetic diamonds. Synthetic diamond is a material chemically identical to natural diamond, manufactured in large quantities, tailored to specific industrial applications. Major consumers of industrial diamonds are computer chip manufacturers, mining and oil exploration services drilling for mineral and natural gas. And of course for manufacturing diamond saws and drills and other tools used in stone cutting and polishing of diamonds. Camparitively speaking, mined industrial diamonds are cheap compared to Gem quality diamonds and range in price from as little as $0.30 per carat for bort-size diamonds to about $10 per carat for mackle diamonds size stones, whereas larger stones do sell for up to $200 per carat.
On the other hand, Gem quality diamonds are a completely different kettle of fish. Several factors can influence the price of a diamond on a stone-by-stone basis. For example, a quarter carat white diamond can cost as little as $275 to as much as $1750. Whereas a quarter carat blue diamond can cost as little as $475 to as much as $2500 with yellow and orange diamond prices ranging somewhere between the cost of white and blue diamonds. Moving on, a one carat white diamond can range from $4400 to $7700 whereas a one carrat blue diamond can range from $6800 to R11500. Again diamond prices are not cast in stone and are forever fluctuaing and are always influential by the four C's hence diamonds are expensive.
Much of cost of these expensive diamonds are value-adds provided by man who expects a certain level of remuneration for a certain amount of work done to the diamonds like cutting, polish and grading or for a certain amount of time or money spent on enhancing the product in fancy velvet packaging and display cases.
Then there are Lab-grown white diamonds, that are priced and sold at some 15-40 percent less than mined diamonds, all carrying the expectancy of the value-add previously mentioned. Globally millions of carats of white diamonds are mined annually, apposed to a thousands of carats of white lab diamonds grown that are sell for 60 percent to 80 percent of natural diamonds. Lab diamonds are unnatural diamonds that are grown en-mass in a laboratory that aught to cost a lot less because of its artificial nature.
Restated lab diamonds diamonds should be considered as faux diamonds, fake diamonds, synthetic diamonds, concocted diamonds, bogus diamonds, inexact diamonds, deceptive diamonds, dishonest diamonds, fraudulent diamonds and should be avoided like the clap. It is not worthwhile investing in any sort of diamond other than those naturally mined, untreated diamonds even though it is unaccompanied by a certificate. On the other hand certificates are is just a way of extracting more money from prospective buyers for some service that is only valued by those running the diamond industry. Personally, I eschew lab diamonds and prefer to invest in jewelry made from natural loose diamonds, if purely for their attractive firery sparkle, smart cuts and true value.
This is a multi-part question which can be addressed by two answers, the first being "No they're not", the the second being "Yes they are". This paradox has stymies most people interested in investing in diamond or diamond jewelry for a very long time. So allow me to shed some light on the paradox. For the sole purpose of my answer, Diamonds essentially comes in two grades, the first being Gem Quality / Jewelry Grade Diamonds, the second being Industrial grade diamonds. Since not all diamonds mined, are not sufficiently beautiful nor precious enough to be used for jewelry, it can quite comfortably be said that as little as 30 percent of all diamonds mined are suitable enough for Jewelry, whereas 70 percent of all mined diamonds known as bort or boart and are used for industrial applications.
In a nutshell, Industrial grade diamonds look ghastly in their raw form, because they have no luster, internally contain excessive un-crystallized carbon dots and flaws, and are normally discoloured and small. Since Diamond is the hardest substance on earth with the highest thermal conductivity characteristics of any type of material at room temperature, it is ideally suited for an incalculable amount of industrial applications. Besides diamonds also have chemical, optical, and electrical properties ideally suited for manufacturing hard-wearing and corrosion-resistant coatings, lenses for laser radiation equipment. Industrial diamonds are predominantly used for abrasives, drilling, cutting, grinding and polishing, among which is polishing silicon wafers and computer disk drives.
While as much as 70 percent of all diamonds mined turns out to be industrial grade diamonds, it only represents a mere 3% of the all diamonds used by industry and the remaining 97% is full filled by synthetic diamonds. Synthetic diamond is a material chemically identical to natural diamond, manufactured in large quantities, tailored to specific industrial applications. Major consumers of industrial diamonds are computer chip manufacturers, mining and oil exploration services drilling for mineral and natural gas. And of course for manufacturing diamond saws and drills and other tools used in stone cutting and polishing of diamonds. Camparitively speaking, mined industrial diamonds are cheap compared to Gem quality diamonds and range in price from as little as $0.30 per carat for bort-size diamonds to about $10 per carat for mackle diamonds size stones, whereas larger stones do sell for up to $200 per carat.
On the other hand, Gem quality diamonds are a completely different kettle of fish. Several factors can influence the price of a diamond on a stone-by-stone basis. For example, a quarter carat white diamond can cost as little as $275 to as much as $1750. Whereas a quarter carat blue diamond can cost as little as $475 to as much as $2500 with yellow and orange diamond prices ranging somewhere between the cost of white and blue diamonds. Moving on, a one carat white diamond can range from $4400 to $7700 whereas a one carrat blue diamond can range from $6800 to R11500. Again diamond prices are not cast in stone and are forever fluctuaing and are always influential by the four C's hence diamonds are expensive.
Much of cost of these expensive diamonds are value-adds provided by man who expects a certain level of remuneration for a certain amount of work done to the diamonds like cutting, polish and grading or for a certain amount of time or money spent on enhancing the product in fancy velvet packaging and display cases.
Then there are Lab-grown white diamonds, that are priced and sold at some 15-40 percent less than mined diamonds, all carrying the expectancy of the value-add previously mentioned. Globally millions of carats of white diamonds are mined annually, apposed to a thousands of carats of white lab diamonds grown that are sell for 60 percent to 80 percent of natural diamonds. Lab diamonds are unnatural diamonds that are grown en-mass in a laboratory that aught to cost a lot less because of its artificial nature.
Restated lab diamonds diamonds should be considered as faux diamonds, fake diamonds, synthetic diamonds, concocted diamonds, bogus diamonds, inexact diamonds, deceptive diamonds, dishonest diamonds, fraudulent diamonds and should be avoided like the clap. It is not worthwhile investing in any sort of diamond other than those naturally mined, untreated diamonds even though it is unaccompanied by a certificate. On the other hand certificates are is just a way of extracting more money from prospective buyers for some service that is only valued by those running the diamond industry. Personally, I eschew lab diamonds and prefer to invest in jewelry made from natural loose diamonds, if purely for their attractive firery sparkle, smart cuts and true value.
