Why Are Diamonds So Expensive?

It is known that diamonds are expensive, but what is the reason for that, you ask. Let's take a look at a few key factors.

Firstly, diamonds are the only gemstones made of a single element. They consist of 99.95% carbon and 0.05% trace elements which are not part of a diamond’s essential chemistry but can influence its color and crystal shape.

It is important to understand that not all diamonds are as pricey as you may think. Diamonds, being an object offered by nature, are rarely perfect. Stones can decrease in value due to imperfections. Diamonds of an acceptable grade are rare; therefore, their value increases drastically.

The size factor

One of the most obvious price factors is size. The bigger the diamond, the more expensive the stone is per carat. This is because bigger diamonds are harder to find. Bigger diamonds with high clarity are even harder to find. Let's not forget that the bigger the stone, the more likely it is to contain visible flaws.

The color factor

One of the most important quality and price factors is color. The whiter or more colorless a stone, the more valuable it is. Most diamonds found are yellowish in color. A colorless stone is harder to find, therefore, it has added value. Although colorless stones are more valuable, the most expensive diamond ever sold was the largest known Vivid Pink Diamond, named The Pink Star, Which sold for an astonishing $71.2 million. The oval-shaped 59.6 carat pink diamond broke the record for the highest price ever paid for a jewel. The largest colorless diamond ever found was The Cullinan Diamond, weighing an astounding 3,106 carats. 

The cutting factor

Another factor is the cutting process. Diamonds are mined, then cut into shape, faceted and polished before being sold. This process is not an easy task. For a diamond to capture as much lighting as possible, it needs to have certain proportions that determine the quality of the cut. While diamond cutters pay attention to proportionality, they also seek to maximize weight while keeping the stone’s clarity at an acceptable level. Achieving the right balance between clarity, weight, cut, and carat is not a simple task, and this is why big stones are so expensive. The round brilliant cut diamond is renowned for being the most expensive cut.

Designer and name brands

Designer and name brands can raise stone prices. Not only is the stone taken into consideration when determining costs, but also the brand’s reputation. For this reason, many consumers purchase stones at higher prices or spend less for a much lower quality stone just because they are buying the diamond from a well-known brand.

The 4C´s factor

If a diamond is priced extremely low, it most likely fails in one of the 4C´s: color, cut, clarity, and carat. The 4C´s play an essential role in determining the quality and price of a diamond. When purchasing a stone, take into consideration the 4C´s. You might not mind having less carats, as long as you have a high-clarity diamond. Depending on your needs, there are quite a few ways you can save on your diamond purchase.

The mining factor

A crucial factor that needs to be considered is that mining diamonds is not a cheap task. There are only 53 places in the world with enough diamonds for commercial mining. Even in the most productive diamond mines, miners need to search through roughly 250 tons of rock to find just one carat of diamond. In addition, keep in mind that most of the diamonds mined around the world just don´t have the quality needed to be used in jewelry.

All the above factors need to be taken into consideration. Diamonds are expensive because they cost a lot to bring to market, and there is a limited supply of quality gems. It’s simple supply and demand.