The sparkling stone, which has fascinated people for years, has actually an extremely simple structure. Diamonds consist of pure carbon as a raw material. It forms under enormous pressure with prolonged heat. Diamond is the hardest substance known to man. What makes diamond valuable is that it needs a long time to form under strict conditions. What makes diamonds rare is also due to this formation process. So can you guess why diamonds are so expensive?
The charm of diamonds is universal. In the recorded ancient cultures, they used diamonds to show strength, love, and value. This value is likely due to a diamond’s unique visual appearance combined with its natural strength and relative rarity. And diamonds are therefore expensive. Diamonds are always precious jewels. After a long time, diamonds extracted from the mine under difficult conditions go through some processes. These processes make the diamond more valuable and expensive since the cost of these operations and the need for labor force are high. After these highly specialized stages, raw diamonds, which take the shape of diamond jewelry, have always attracted the attention of women.
Diamonds have spiritual values besides their natural and visual values. The diamond, which has become a symbol of love and devotion, makes the person feel special. No diamond is equal to each other. They all have their own uniqueness. When this uniqueness, like fingerprints, are gifted to the lover, an emphasis is placed on her uniqueness. Diamonds are unique stones that are rare on earth. Since everything rare is precious, this makes it valuable. During the extraction of diamonds from the mines, approximately 250 tons of soil must be sifted for a 1-carat diamond. High costs are incurred for this very demanding job. In addition to having serious financial resources for those who do this job, they also need powerful technology. This feature alone helps us understand why diamonds are so expensive and valuable.
After the diamonds are mined, they must pass a certain stage in order to be used as jewelry. They can produce many types and models from diamonds. These are rings, necklaces, earrings, necklaces, bracelets, and bangles. Women dream of reaching these products, each one more beautiful than the other. Undoubtedly, the most preferred jewelry among jewelry made of diamonds is a diamond ring. At the same time, a diamond ring, which has become the symbol of marriages, is a precious stone that will never lose its value. Women always admire diamonds, and this interest in diamonds is another factor that makes it valuable.
If you examine the types of jewelry that can be gifted to your loved one, you will understand how elegant and beautiful they can look on your beloved. Although the most preferred diamonds among the diamonds that can be gifted to the lover are diamonds and rings, the other most preferred product is a diamond necklace made of diamonds. With its elegant standing image, the diamond necklace is a product that has always managed to attract attention.
Why Diamond Is Valuable: The Most Expensive Stone
Diamond is a gem that people have attributed different meanings and values for centuries. The main reason for this is, of course, its hardness and durability. After people realized the hardness of the diamond, they began to see it as a symbol of strength and invincibility. So always; it demonstrated the power of its holder. Throughout history, many wars have been fought to obtain the diamond that represents the rulers’ power. Larger diamonds are registered because they are much rarer. However, although some of them are registered, their location is unknown. This is because they were stolen or lost.
Some of the stolen diamonds were cut in different ways and changed by various processes and changed into smaller stones in order not to be recognized. Thus, despite its depreciation, the diamond was cleared. When it was realized that only another diamond could cut the diamond, the diamond was processed and its brightness (amount of reflected light) and light games (shine, dispersion) were brought to the fore. The brilliance of the diamond, which is not found in any other gemstone, has reached the highest level with the diamond cut and adds value to its value economically because the diamond is rare.
Each community gave a different meaning to the diamond. The diamond, which the Greeks called the tears of the gods, was the star particles for the Romans. It is believed that Cupid Eros also had a diamond at the tip of his arrow. It has become a symbol of immortality as it is difficult to harm. Today, the diamond attracts the attention of those who want to express the immortality of their love. For the first time in history, Archduke Maximilian of Austria gave a diamond ring to Princess Mary as an engagement ring in 1477.
According to the mythological story of the ancient Egyptians, the vera of love called “Vera Amoris” goes from the ring finger of the left hand to the heart. For this reason, it is known that wedding rings are worn on this finger. The usage area of the diamond is very wide. It is widely used especially in industry, we can say that more than 80% of the diamonds extracted are used for industrial purposes. Mining diamonds is difficult and tedious. Mines visible from space are spiraling deeper. Soils extracted from mines are moved to another section. Then, in this processing area, the diamonds are sieved and separated from the rocks. Approximately five tons of soil is cultivated to obtain a carat diamond.
Diamond also has outlier properties. While carbon points to the organic origin, diamonds made of pure carbon are inorganic. Special definitions have been made to the diamond as color and clarity class, even the color definitions of the diamond in its raw form are divided into mineralogical and gemological terms. While nonmetals are insulating against heat; Although diamond is non-metallic, it is a very good heat conductor. While processing other gemstones, water cooling is done, but the diamond is not cooled as it transmits heat.
Also, a diamond has traveled to more countries than the average person. Because the countries where diamonds are mined and processed are different: Canada, Angola, Botswana, Russia, South Africa, Democratic Republic of Congo, Australia, and Namibia are the main diamond miners. Diamonds are cut in countries such as India, Belgium, and Israel. Major diamond trading centers are Dubai, India, and Belgium. It is sold all over the world from these countries.
Factors That Make Diamond Valuable and Expensive
The diamond is shiny. Diamond, one of the brightest gems in the world, allows us to see many light games on it by slowing down the light entering it. With its reflections on its surface (shine), its refraction by slowing down the light entering into it, and its characteristics of dispersion while reflecting the light entering outside, diamond creates a literal feast of light. Because of this, it glows highly even in the weakest light sources. Slowly move your diamond in candlelight or dim light. You will witness the light games on it. The refractive index of the diamond is 2.42. This ratio, which is quite high compared to other minerals, is the main reason for the brightness of the diamond. Ruby: 1.77, Sapphire 1.77, Emerald 1.56.
Diamond is durable. Diamond, with a hardness of 10 on the Mohs scale, is the hardest mineral. You cannot scratch the diamond with any tools or stones. Neither glass, knife, nor tooth. On the contrary, the diamond draws easily on ruby, glass, and sapphire. The diamond can only scratch another diamond. Ruby: 9, Sapphire: 9, Emerald: 7.5. With the advanced technology, materials harder than diamond are both discovered and produced. But still, diamond is one of the hardest materials on earth.
Diamond is pure. Diamond is one of the minerals that contain the least inclusions that are described as fingerprints of nature. These inclusions are frequently observed in gems such as emerald, sapphire, or ruby. However, by containing them less, the diamond becomes the most transparent stone compared to other stones. The diamond, which is the symbol of transparency and purity, has been associated with values such as trust and quality, as a symbol of being like yourself, being unglazed and open. When we say a human like a diamond, we are actually referring to the transparency of that person and his being as he seems.
Diamonds are rare. For a diamond weighing one carat, an average of 250 tons of soil should be sifted. The extraction of this precious stone whose mining requires serious patience requires both financial power and technological knowledge. It is also very difficult to find a well-cut diamond.
Why Diamond Is More Expensive Than Water: Marginal Utility
This paradox can be explained with the help of a concept known as the marginal utility. The marginal utility is the amount of pleasure received from the last unit of the good consumed. In 1889, the Austrian economist Eugen von Böhm-Bawerk explained this with the example of the farmer with five sacks of wheat. If the farmer loses one of the sacks he will stop feeding the birds. Although the farmer needs wheat to feed his stomach, the price he will pay for replacing the fifth sack is small, because the fifth sack corresponds to a little pleasure (feeding the birds). Water was abundant; diamonds are rare. An extra diamond has a high marginal utility; that’s why a diamond has a much higher value than water.
If we try to look at this phenomenon in a more scientific way, here what I can say about it. It is the term that expresses the change that this last unit of good creates by one unit of increase in the consumed good. As the amount consumed from a good increase, the benefit to be received from each increasing unit of good decreases. As consumption increases, the benefit decreases to zero after a while and then begins to decrease. This is called the Declining Marginal Utility Law. Since the usefulness of each unit decreases with the increase in the amount that consumers buy from a good, the price of this good must be reduced in order to sell additional units. This causes the Demand Curve to be negatively sloped.
Classical Economists argue that human beings act rationally. This situation determines the nature of human behavior. Marshall, one of the classical economists, set out from the assumption that utility can be measured absolutely. According to Marshall, the measure of benefit is the price. While consumers spend, they invest in products that will provide them with the highest benefit. For example, if a person is willing to pay $ 8 to one unit of a good X, $ 6 to the second unit, and $ 4 to the third unit, it means that the person benefits from the units in question to that extent.
The Paradox of Value: Expensiveness of Diamonds
In 1776 Adam Smith was saying that there was nothing more important than water, but the water was not overpaid. On the other hand, he was talking about the fact that although diamond is used little, it is heavy in price. So, there was a dilemma. So how could this paradox be explained? Actually, we can explain this with the help of marginal utility. Marginal utility is “the amount of pleasure received from the last unit of goods consumed.” Water is abundant in nature. Yet diamonds are rare. Having extra diamonds means high marginal utility. No matter how much diamond is, it is extremely valuable. However, the marginal utility of water will decrease with each increasing unit. Let’s explain this with an example:
Let’s say you exercised for 1 hour and you are very thirsty. After 1 hour you have 1 jug of water. And you filled a glass of water from the jug and drank it. 80% of your thirst has decreased. You also filled the second glass of water and every sip of water you drink will now help you reach satisfaction. You may not want to drink the 3rd glass of water or you barely drink it. This is a diminishing benefit. In fact, the other important factor that makes the diamond valuable is the “labor theory of value”. According to the labor theory of value, “the value of a good is measured by the labor that goes into making it”. Natural resources came free from nature. And it is also abundant. When “labor” is added to natural resources, we reach “raw materials”. And when raw materials are processed, we obtain “goods”. In short, the value of the diamond is also proportional to the effort spent.
The theory that “demand is inversely proportional to price”, taught to us in economics, states that demand will increase when the price falls. That is, as the price falls, consumers will demand more of the good in question. However, each unit consumed will provide less benefit to the consumer. For example, you enjoy the last ice cream less than the first. This also informs us about the price of the goods that were first put on the market. There is also a dimension to this. “Spending paradoxes”. Some people tend to buy more when prices are higher.
According to this theory, which is also known as “conspicuous consumption”, when prices increase, the demand for these goods also increases. These goods are considered symbols of high status. The idea of owning these properties arises from this status existence. Evidence of this behavior is luxury cars, luxury champagnes, luxury watches. Money and wealth are different. The more people acquire, the more ambitious they get and the more they want to achieve. Money is nothing and everything. This is a paradox in itself!
Misconceptions About the Expensiveness of Diamonds
Generally considered valuable because of its scarcity, the diamond actually has a very interesting story. As a matter of fact, it is one of the most mined and therefore the least rare stones among the precious stones. So why is diamond valuable? Why is diamond expensive compared to other precious stones? First of all, it is worth noting that the diamond has also been a very precious stone in the past. The ancient Greeks believed that this indestructible stone had magical powers and thus gave its owner a status. Royals and noblemen enjoyed wearing diamonds. So the diamond is not a new phenomenon. But diamonds are so expensive not because they are so rare or because they tend to resemble Ancient Greek nobles. Behind this is a perfect monopoly strategy. Before moving on to that, it is necessary to highlight a few urban legends about diamonds.
Urban Legend 1: Diamonds Are Very Rare and Therefore Very Expensive.
Compared to other precious stones, diamonds are not very rare stones. On the contrary, it is one of the most widely mined stones. Usually, rarity is an important parameter when calculating the price of a stone. Ruby, emerald, and sapphire are much rarer and much more expensive gems. But there is a perception operation on diamond trade all over the world. All in all, the expensiveness of the diamond is not caused by its rarity.
Urban Legend 2: The Bigger the Diamond, The More Expensive.
While this is not entirely true, it is not entirely false. The four C rules apply when calculating the price of a diamond. Carat, Clarity, Color, and Cut. Each of these criteria is equally effective on price. A huge 10-carat diamond doesn’t have to be more expensive than a 5-carat diamond. If the clarity and cut of the diamond in your hand are not good enough, the price may be less than you expect.
Urban Legend 3: Diamond Mines Are Decreasing And Their Prices Are Increasing.
There are certain types of diamonds, and the rarest and expensive ones are the colored ones. It is true that yellow and rose diamonds are increasingly rare and rare. In fact, it is predicted that the yellow and rose diamond mines will be completely exhausted in the next ten years. However, white diamonds are not at risk. New diamond mines can be opened every day. In addition, the demand for man-made diamonds is increasing day by day. Almost indistinguishable from natural diamonds, they are backed up as they are less expensive and more environmentally friendly.
Over the years, diamonds have been a symbol of power and wealth. It used to be enough to explain the rise in the price of rarity, as diamonds were much harder to find, but today is not the case. A new diamond mine was found in Kimberly, a South African city in the 1800s. Having enough diamonds to meet all the diamond needs of the world, this mine had enough potential to quickly reduce diamond prices. Seeing this, a company called De Beers immediately intervened and bought the mine. Running the world’s largest supply of diamonds in an uncontrolled manner should not have caused a huge loss of money. De Beers kept the mine’s diamond supply sufficiently controlled to keep prices at a certain level. For this reason, diamonds were thought to be still rare and their prices did not decrease.
By the 19th century, De Beers became a worldwide monopoly and took control of mines. One of the smartest moves De Beers made was to support the trend of making marriage proposals with a solitaire diamond ring. While emerald and sapphire rings were in vogue before, the new campaign increased the demand for diamonds. Therefore, the reason why diamonds are expensive is not that they are rare, but because it is a perception operation carried out on the assumption that it is rare. Diamond is not a rare metal, but with the addition of its very hard almost unbreakable structure and the characteristics of pure diamond, which emit enormous light under the light, the work of the perception operators was not too difficult.
The price of diamond rings depends on the quality of the diamond used and the workmanship. In addition to this, the prices of diamond rings are in a wide range when the brands’ own dividends are added. For example, a 0.04-carat diamond solitaire ring can range from one thousand to 2 thousand dollars, while a 3-carat solitaire diamond ring is sold for around 400 thousand. The size, purity, cut and color of the diamond directly affect the price of the solitaire. The solitaire rings in the examples above can cost twice the price when using a colored diamond. The most expensive diamond solitaire ever sold is made of a very rare blue diamond. A billionaire bought the Blue Moon diamond ring, weighing 12.3 carats and with its excellent color and light quality, as a gift to his 7-year-old daughter for $ 48.4 million.
The Most Expensive Diamonds in the World
Here are the most expensive items made of diamonds and precious stones, whose prices are astonishing… The ring, which the world’s most expensive gem jewelry company is called Constellation. The 6-centimeter Constellation is 813 carats and has a total value of $ 63 million. Vivid blue jewelry is also among the most expensive in the world. Created by the British firm, the ring weighs 14.62 carats. The Oppenheimer Blue diamond was auctioned for $ 57.5 million in May within 20 minutes. The sale of the diamond was set as a record. Lesedi La Rona, which is thought to be 3 billion years old and recorded as the biggest diamond of the last century, was offered for auction for 70 million dollars but could not find a buyer. The diamond was found at a Canadian company’s mine in Botswana. The 109-carat diamond dates back about 3 billion years.
The 100-carat jewelry was unveiled at Sotheby’s Auction House in 2015. The diamond was valued at between $ 15 and 25 million. The 8.41-carat pink diamond, which was sold by Sotheby’s Auction House for $ 15.5 million, was sold for $ 17 million 800 thousand after a long controversy in Hong Kong in 2014. The 1.21-carat red diamond, called ‘Fancy Red’, was mined by Rio Tinto in 2014. To whom the diamond was sold and the selling price was not disclosed.
The 122.5-carat blue diamond mined from the Cullinan mine in South Africa in 2014 was valued at $ 35.3 million. The value of a diamond weighing about 25 grams was calculated according to another diamond that was previously mined from the same mine and whose one carat was worth 500 thousand pounds. The same company made it to the list of the most expensive diamonds with a 507-carat white diamond, worth £ 21 million, released in 2010. Bvlgari Blue is produced by an Italian company. The first buyer of the ring with a 10.95-carat blue diamond and a 9.87-carat clear diamond paid $ 1 million. However, in 2010, the price at the auction in New York increased 16 times.
The 13.22-carat diamond Winston Blue, with the brightest blue in the world, was mined in South Africa. The diamond, called The Blue when removed, is in the engagement ring. The diamond was sold to Harry Winston for $ 23.8 million in 2014. The 100-carat yellow diamond was sold by Sotheby’s Auction House in 2014. The diamond mined from South Africa 10 years ago was sold for $ 16 million. The watch called “Graff Hallucination” is worth $ 55 million. It consists of 110 carats of diamonds. Thousands of hours have been spent producing the watch decorated with rare diamonds. The watch produced for women was sold at a jewelry fair in Switzerland.
The 14-karat gold pocket watch of Babe Ruth, the player of the famous baseball team Yankees, was purchased by an anonymous collector who attended by phone for $ 717,000. The watch was gifted to Ruth and her teammates after a match in the World Championship Series in 1923, where they defeated another New York team, the Giants. A rare “blue diamond” was found in South Africa’s Cullinan Mine. Petra Diamond Company reported that the 29.6-carat diamond will find buyers at a very high price. Petra, which has operated the Cullinan Mine since 2008, said in a statement in 2014, “This is one of the most exceptional diamonds we have found since we started operating this diamond mine. It has an extraordinarily vivid blue color, tone, and clarity.
Known as the Pink Star, the diamond found buyers for $ 83 million at an auction in Geneva. Diamond became the gemstone sold at the highest price. Isaac Wolf, one of New York’s well-known diamond cutters, who bought the 59.60 carats Pink Star, named the diamond “Pink Dream.” The 14.82-carat ‘The Orange’, which was sold by Sotheby’s auction house in 2013, was valued at $ 36 million. The 118.28-carat type IIa D color diamond was put on sale at Sotheby’s Hong Kong auction in 2013. The diamond, valued at $ 28 to 35 million, was the size of a small egg and was counted as the world’s largest oval-cut diamond. This diamond was cut from a 299-carat rough diamond found in a South African mine in 2011, and the cutting process of the diamond took about four months.
The 101.73-carat diamond in ‘D’ color is among the largest in the world. The diamond was sold at Sotheby’s Geneva auction for $ 30 million in 2013. The 34.65-carat pink diamond was found in India. The diamond was sold in New York in 2013 for $ 39.3 million. The most important feature of the 77-carat diamond is that it is in the shape of a butterfly. Consisting of 2,328 stones, the brooch was created in 2009 by Cindy Chao. The diamond in question weighs 76.02 carats and has a D color. A top quality Golconda diamond with IF (internally flawless) clarity. (Golconda is an ancient diamond mine located in central India, which was operated from 400 BC until diamond mines in Brazil were found, i.e. 1725.)
The 150-carat diamond ring is the world’s first ‘150-carat diamond ring’. The total value of the diamond ring is set at 70 million dollars. In 2006, Karolina Kurkova took to the podium in her Victoria’s Secret bra. The value of the bra was set at 6.5 million dollars. Blue Belle of Asia had been found in Sri Lanka. The 392.5-carat “peacock blue ruby-cut sapphire adorns the diamond necklace.” In 2014, there was a buyer whose name was reserved at the auction held in Geneva, Switzerland. Perfect Pink is considered to be the most expensive jewelry that has changed hands at an auction in Asia. A 14.23-carat brilliant pink diamond with a radiant cut is adorned with 2 D colored diamonds next to it. The ring is also a mix of pink and white gold for $ 22.3 million, the diamond was sold to an undercover buyer in 2010. L’Incomparable was sold for $ 55 million in 2013. The Swiss jeweler Mouvad’s unique design features a 407.48-carat yellow “L’Incomparable,” (Incomparable) diamond and a total of 230 carats of diamonds.
Most Expensive Diamonds You Can Buy Online
- Kobelli Three-Stone Radiant and Emerald Diamond Engagement Ring 5 4/5 CTW in 18k Two-Tone Gold (Certified)
- 1/2-3 Carat Platinum GIA Certified Radiant Cut Diamond Pendant Necklace Ultra Premium Collection (H-I Color, VS1-VS2 Clarity)
- 2.01 Carat 18K White Gold Round Cut GIA Certified Solitaire Diamond Engagement Ring 4 Prong D Color VS2 Clarity
- Solid 18k White Gold Genuine 43.61 Ct. Emerald Gemstone Flower Pendant Necklace Diamond Earrings Handmade Jewelry