Diamonds are one of the most expensive gemstones available. But why are diamonds so expensive?
There are many myths surrounding diamond prices. In this article, we’ll tell you everything you need to know about the diamond industry and why diamonds cost so much.
And, if diamonds are just too expensive for you right now, take a look at our beautiful range of affordable cubic zirconia rings!
Joyce Layered Stack Ring
Charisse Vintage Ring
Midi Knuckle 2-Ring Set
Diamond mining is expensive
Running diamond mines costs a lot of money. Diamonds are not particularly rare (compared to other gemstones), but high-quality diamonds are. Finding diamond deposits and establishing diamond mines takes a lot of time and handiwork and costs a lot of money.
There are relatively few diamond mines globally, and the largest 50 supply over 90% of the global diamond industry.
When it comes to rough diamonds, carat weight isn’t everything. Say you mine a 1-carat rough diamond—that’s 1-carat straight on the engagement ring, right? Not at all. Depending on the quality of the diamond, it will need to be polished or cut into smaller pieces that can then be polished.
This process will usually cut a rough diamond down to one-third of its size. So that 1-carat rough diamond is now one-third its carat weight.
After this, the polished diamond will need to be sorted and evaluated for its quality. Diamond experts are needed here, and they’re expensive. Then, the gemstone is cut into whichever diamond cut will give the highest yield or profit.
The diamond market also runs on how popular the gemstone is and how popular certain styles and cuts are.
The diamond shape (and the diamond cut) are two of the most important factors when it comes to diamond price. The most popular diamond cut is the round brilliant cut, which is generally more expensive than some less popular choices. Another factor is clarity—a flawless diamond is much more expensive than one with heaps of inclusions.
As you probably know, diamonds come in all sorts of colors. There are yellow diamonds, red diamonds, pink diamonds, blue diamonds—pretty much any color you can imagine. Why does this matter?
Well, the rarer the diamond, the more expensive it is. A fancy colored diamond may be more or less expensive than a white diamond, depending on how few are mined.
Yellow diamonds are one of the less pricey diamond colors and will sell slightly cheaper than a white diamond. A blue diamond is much rarer than a white diamond and will sell for a much higher price—the same goes for pink diamonds.
By far, the rarest fancy colored diamonds are the red diamonds. Red diamonds sell for hundreds of thousands of dollars.
There are claims on the internet that large diamond mining companies like De Beers set the price of diamonds far higher than it costs to mine and produce. There’s no doubt that the big players in the diamond industry mark up their prices; this is what happens in every industry.
But there’s also no doubt that it takes a lot to get a rough diamond from the ground to the diamond market, and there are a relatively small amount of high-quality diamonds.
If one diamond dealer is selling too high, look around and see if you can find a better price.
There you have it
So there’s a reason, after all, why diamonds are so expensive. It comes down to the costs of establishing and operating a diamond mine, the cost of diamond production (sorting, evaluating, polishing, and cutting the diamonds), and the need for the diamond industry to run on a profit.
Sometimes it can be a shock when you go to a diamond dealer and realize how expensive they are. But it’s the price you pay for a precious stone. And don’t forget—you don’t always need the perfect diamond. You can always choose the carat weight you’re happy with and then settle for a less than flawless diamond. Most people won’t notice!
And there are other ways to save money too. Buying lab diamonds or even cubic zirconia can significantly cut down the cost of your engagement ring. Just do whatever makes you and your partner happy!