According to the world’s largest diamond maker, De Beers, despite declining output and moving to new areas to exploit, diamonds worldwide are still high each year. As such, diamonds are not so rare. But why do they cost so much?
The Reasons Why Diamonds are Expensive
In fact, South Africans used diamonds as a savings deposit in banks hundreds of years ago, because of this land has the world’s top diamond reserves. Physical scarcity is not the main reason for the high cost of diamonds, which is due to the high cost of exploitation, the impact of monopoly and the issues related to the legitimacy of the gemstone.
It must be confirmed immediately, not diamonds that price is too expensive. The value of diamonds is determined by the four letters C: Carat, Clarity, Colour, and Clarity (Cut and Diamond Cut). This makes the diamonds used in the jewelry industry more expensive than those used in other industries, such as mining (where diamonds are used for drill bits) or manufacturing (where diamonds are used make a knife).
There is a crystal structure composed of pure carbon, in which each carbon atom bonds to four other atoms, the hardness diamond (considered the hardest mineral found in nature), good dispersion and heat resistance is very high. According to studies, under the effect of normal temperature and pressure, a diamond can only be turned into graphite for a time equal to the time that the universe has formed to date (15 billion years).
Diamond Extraction is Difficult
Since it is only made in an environment where the temperature and pressure are high enough, diamond extraction is difficult. Most of these minerals are found only in volcanic craters that have been turned off, or have been dug deep in underground aquifers, and are concentrated in some parts of the world, including South Asia, Africa, and North America.
Finding a diamond mine with enough reserves to exploit the industry can take decades to reach hundreds of thousands of workers. And to be able to get a diamond karat (equivalent to 20 mg), the volume of rock to dig, the average filtered is 1.3 million tons.
After the mining, the stone gains the first three C grades that will be used to cut into jewelry. A rough diamond when it comes to the cutter’s hand is worth only 40% of the treated diamond. Because after each cut, their mass loss much.
Diamond Cut is also a Factor
In addition, the value of diamonds does not increase evenly according to their mass. The larger the diamond, the higher the price. (A 0.85-carat diamond costs less than half the price of a 1.05-carat diamond.) Each diamond, depending on its shape, can be cut in different numbers, but usually, varies from 30 to 60 sections. Diamond cutting and polishing are handmade, so the cost of this process is huge.