Why are diamonds so expensive?

As long-time jewelers, we receive many questions about diamonds from our customers, one of the most popular is, “why are diamonds so expensive?” The answer is almost as faceted as a diamond itself! Here are a few factors that contribute to diamonds being highly prized and typically more expensive than other gemstones.

  • Diamonds are actually quite rare.
  • They are formed over many centuries (in contrast to manufactured diamonds which are quickly formed).
  • The bigger and better quality they are, the more rare they become.
  • It takes an expert hand to cut and polish a diamond. Hearts on Fire (TM) cuts take about 4 times longer to cut than an average diamond. The payoff is in greater brilliance emerging from a raw diamond.
  • Only .01% of 1% of available diamonds is able to be cut perfectly, further narrowing the window of such rare and perfect specimens.

Specific factors such as cut and color are taken into consideration when grading and pricing diamonds relative to each other. Since this topic is quite involved, and we want to educate not overwhelm you, we have broken it into four parts (Part 1 – Cut, Part 2 – Carat Weight, Part 3 – Color, Part 4 – Clarity). Some basic knowledge will not only unlock the mystery of a diamond’s quality, it will help you understand a diamond’s value and price.

If you know of anyone planning to purchase a diamond engagement ring in the near future, this series is a great primer to forward/share to them. Your referrals are greatly appreciated!