Have you ever questioned what it is about diamonds that makes them so valuable and expensive? Here are some interesting misconceptions about diamonds and their price, so we can work out the truth behind their value:
Myth 1 – Diamonds are expensive because of their rarity
We often believe that diamonds are very rare and that explains their high cost, but they are not very rare at all. Compared to the frequency of other gem finds, diamonds are a fairly common find. The price of a gem per carat is based on its rarity, therefore emeralds, rubies and sapphires command a higher price as they are rarer.
Myth 2 – The diamond supply is being depleted
Many people cite the depletion of the world’s diamond supply as the reason for the high cost of diamonds. While it is true that coloured diamonds are in shorter supply, white diamonds are not suffering from a shortage.
So, why are diamonds so valuable?
The simple answer is market demand. Diamonds are the pinnacle of desirability and have been for centuries. They represent wealth, power, status and elegance. In the past, mining was harder, and diamonds were thought of as rarer and so this pushed up the price of the stones.
However, during the 19th century, a large diamond mine was discovered in Kimberly, South Africa. There was so much potential for a glut of diamonds to flood the market and drastically bring down the price of the gems. To counter this potential problem, De Beers bought up the entire mine, so they could keep strict control of the number entering the global market. De Beers have only ever released enough to satisfy yearly demand, maintaining the inflated price of diamonds and giving the illusion that they rare than they are. Some of the price tag is associated with the work adn risk that is involved in mining these gems as well as cutting and cleaning them. Specialist equipment like a large ultrasonic cleaner that you can find from https://www.hilsonic.co.uk/ may be used to help clean equipment or even large batches of gems.
To add to this, criminal cartels would stockpile diamonds which further limited availability of the stones and drove prices up even further.
It was in the best interests of De Beers to push aside the existing tradition of sapphire and ruby engagement rings, so they began a strong marketing campaign to convince consumers that a diamond engagement ring was the most desirable piece of jewellery to own.
The value that we place on diamonds isn’t all down to clever tactics and smart marketing though. Diamonds have long been seen as a precious and valuable gem. The Ancient Greek culture revered the stone and believed it had mystical powers. Diamond engagement rings have also been traced back to the late 15th century. The fervour for diamonds is nothing new then and doesn’t seem to be abating any time soon either.