Have you ever wondered why diamonds are so expensive? Diamonds aren’t just expensive for the sake of being expensive—their price isn’t arbitrary. Several factors transform these Earth-born stones from mere rocks into valuable, costly pieces of luxury. Read on to explore the elements that influence the pricing of these prized possessions.
Are diamonds actually rare?
Despite their rare and exclusive reputation, diamonds are among the most abundant gemstones on Earth. However, not all diamonds are created equal: exceptionally rare diamonds do exist. The value and rarity of a diamond are influenced by the elements within it, including its color and the conditions in which it was formed.
This misconception of diamond rarity leads many to think, "Then why are diamonds so expensive when they aren't rare?" It’s a valid question! But while diamonds occur abundantly around the globe, cleaned, shaped, and polished diamonds aren't just waiting around to be found. A complex process transforms a simple "clump of minerals" into the dazzling gemstones we admire in fine jewelry. Mining diamonds is difficult and costly, and the cutting and polishing processes further add to their price tags.
4 reasons why diamonds are expensive
Deciding whether the rarity, beauty and prestige of owning a stunning diamond justifies its price is a deeply personal choice. Aside from the typical 4 Cs (cut, clarity, color and carat) used to determine diamond value, several other factors determine the final price of a diamond. Let’s explore them:
Mining costs
Mining for diamonds is a complex process requiring skilled, knowledgeable miners and specialized equipment. But that’s just the beginning. Mining costs also include labor, transportation, environmental management, and safety measures, which significantly impact the price of a diamond.
Natural diamonds are rare
Sure, natural diamonds aren’t the rarest gemstone (that title goes to red beryl), but they are still rare. While diamonds are made from carbon—one of the most common elements on the planet—the process that forms diamonds is not so common. Extreme pressure and heat, followed by rapid cooling, are necessary. Additionally, a geological process, such as volcanic activity or plate tectonic movement must bring the formed diamonds closer to the Earth’s surface or deep mining is needed to retrieve them. Furthermore, only about 30% of mined diamonds meet the standards for gem-quality stones, making them even rarer.
Sorting and cutting difficulty
Once mined, diamonds must be sorted before being cut or polished. Initially, diamonds are categorized as gem-quality or crushing-board diamonds (diamonds that aren't suitable for use in jewelry due to their lower quality, but they still have value in industrial applications). Gem-quality diamonds are further sorted based on carat, cut, clarity and color:
- Carat. Rough diamonds are categorized by weight into four categories: “smalls” (.65 carats or less), “grainers” (0.66-1.79 carats), “large stones” (1.8-10.79 carats) and “special stones” (over 10.8 carats). The largest gem-quality diamond ever discovered is the Cullinan Diamond, weighing in at an incredible 3,106 carats.
- Cut. Diamonds are sorted into the following cut types: “sawable” (easy to cut by saw), “makeable” (able to be shaped into desirable shapes; however, not easily cut by saw), and “cleavage” (easily shaped by splitting along diamond’s naturally occurring planes).
- Clarity. Many gem sorters use the Gemological Institute of America (GIA) clarity scale while sorting. This scale grades diamond inclusions from “flawless” to “included” diamonds, with “included” diamonds having noticeable blemishes.
- Color. Diamonds are further sorted using the GIA’s D-Z color scale, with D being colorless and Z having the most visible color. Naturally colored diamonds (such as blue or pink) are classified as “fancy” diamonds and aren’t rated on the GIA scale.
In the diamond-cutting process, sorting is followed by cleaving, bruting (shaping), faceting, and polishing—steps that require skilled artisans to bring out the diamond’s brilliance.
How to save money when buying diamond jewelry
The diamond-buying process can get expensive. But there are smart ways to save without sacrificing too much quality:
- Choose a slightly smaller carat size. Opting for a diamond just shy of the next carat size can save you a significant amount while maintaining a similar appearance.
- Prioritize cut over carat weight. A well-cut diamond will appear larger and more brilliant, even if it's slightly smaller in carat weight.
- Consider lower color and clarity grades. Diamonds in the "near colorless" or "slightly included" grades offer excellent value without compromising too much quality.
- Buy loose diamonds and set them separately. Purchasing a loose diamond and selecting a setting separately can sometimes result in lower overall costs compared to buying pre-set diamonds. It also gives you more control over both the diamond and the design.
- Look for sales or discounts. Many jewelers offer sales during holidays or seasonal promotions. Shopping during these times can help you secure a better deal without compromising quality.
- Consider alternative shapes. Round diamonds tend to reflect higher price tags, but other shapes like oval, princess or emerald cuts can sometimes offer better value while still delivering a stunning look.
Protect your diamond jewelry with Jewelers Mutual
Diamonds are expensive, so consider insuring your valuable jewelry with a personal jewelry insurance policy from Jewelers Mutual. Obtaining personal jewelry insurance through Jewelers Mutual is affordable and covers loss, damage and disappearances. You can check your rate by clicking the button below.
