Wondering Why?

Why are Diamonds so Expensive?

Why are Diamonds so Expensive?

Diamonds are considered as the most expensive gem in the world as of today. It is expensive because of the simple supply and demand theory. While diamonds may not be as rare as most people think they are, there are several classifications on which diamonds are judged. The value of a diamond depends on the four C’s and they are carat, clarity, color and cut.

Even if you possess an abundance of diamonds only a few are considered ‘top class,. From the 4 C’s alone, the difference between diamonds can be more easily recognized than you can imagine. When a diamond is dug on the ground it is already categorized depending on their carat, clarity and color. Diamonds are also used for industrial purposes and those that don’t have any special characteristics fall under this category.

You might be surprised, but diamond is used in our everyday lives and it is not just about the accessories that we wear. It is used as a cutting tool in many products in the industry. It is also imbedded in other material, used as an abrasive and even turned to powder for polishing or grinding.

Cutting on the other hand, brings out the real value of the gem. Cutting is a skill that is important in creating the jewelries we wear today. A good cut will make a good accessory, while a poor one can greatly affect its value. That is what makes diamonds expensive. Since the supply of quality diamonds is not that high, the demand for it increases and affects its price.

There is also the factor that diamonds are controlled or limited by a few companies. Since they hold the supply of diamonds in check, they are responsible for the standard price of diamonds. With them holding the leash, the prices won’t go down. This makes diamonds very important assets and a good investment for their companies.

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