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Is diamond supply controlled?
As diamonds were discovered in other parts of Africa and South America, De Beers gained control of the rough diamond supply. De Beers maintained a monopolistic hold over the diamond market for several decades, controlling 75-85\% of the diamond rough supply.
Who controls diamond value?
Sightholders. An event De Beers hosts helps set diamond prices every season. Diamond dealers compete to be one of 84 “sightholders” at De Beers’ “sights.” These companies are invited to view and purchase diamonds directly from De Beers ten times a year.
What makes a diamond valuable?
Subtle differences in color can dramatically affect diamond value. Two diamonds of the same clarity, weight, and cut can differ in value based on color alone. Even the slightest hint of color can make a dramatic difference in value. Within that range, colorless diamonds are the most rare, so they’re the most valuable.
How is diamond price controlled?
In the case of diamond cost, the rough, uncut stones are priced at a different value compared to the polished and cut stones. However, diamonds are not controlled by the free market; they are controlled by the giant cartels, such as De Beers, which decides and sets the diamond’s price.
Why is diamond supply controlled?
The Dark Side of Diamonds De Beers was able to create and stoke demand for their product; now, they had to control supply. They could determine how many diamonds they wanted to sell, and they set the price. Sightholders were kept in line by De Beers: they had to operate under rigid rules.
Is diamond really valuable?
Diamonds are not particularly rare. In fact, compared to other gemstones, they’re the most common precious stone found. Therefore, rubies, emeralds and sapphires are much rarer and, in turn, far more expensive than diamonds. MYTH #2: The bigger the diamond, the more it costs.
Has the price of diamonds increased?
Yes, the average diamond price has increased from 1960 to today. However, there’s also been cumulative inflation of more than 700\% over the same time period, meaning that the true appreciation in value of a diamond is very small.
Are diamonds actually worth anything?
The price of diamonds fluctuates in the economy just like any other high-end good. Sometimes diamonds increase in value, while other times they decrease. Regardless, pre-owned diamonds sell for slightly less than their original prices. In most cases, a diamond has a resale value of 20-60\% of the original price paid.
Are all diamonds really that valuable?
Actually, no. Here’s the real reason why diamonds — of any size — aren’t as valuable as you may think. When’s the last time you saw an engagement ring that didn’t feature a diamond? It’s probably been a while, if ever at all. According to The International Gem Society (IGS), the diamond is the most popular gemstone.
What determines the value of a diamond?
The size or carat weight of a diamond is only one factor in calculating the value of the diamond. Known as the “Four C’s,” carat, clarity, color and cut collectively inform the price of a diamond. No single characteristic outweighs another; they all contribute and influence the final retail value.
Are diamonds really in short supply?
It is true that fancy colored diamonds (like yellow or rose pink diamonds) are in short supply. Some experts estimate that colorful diamonds will be depleted in a decade. However, white diamond supply is not really at risk. Historically, diamonds were very hard to find.
Are diamond professionals just making up diamond prices?
Diamond professionals use the four C’s when classifying and pricing diamonds: carats, color, cut, and clarity. Due to the complexity of these four dimensions, it’s hard to make apples to apples comparisons between diamonds. But even when looking at the value of one stone, professionals seem like they’re just making up diamond prices: