(Closed) "Diamonds aren't rare" question

posted 6 years ago in Rings
Post # 2
Member
499 posts
Helper bee
  • Wedding: December 2014 - Maui

It’s because the De Beers company has a monopoly on diamonds, so they aren’t really that rare. It’s explained in this video. 

Post # 3
Member
431 posts
Helper bee
  • Wedding: July 2017

View original reply
Worried9887:  the value in a diamond does not come from its rarity, but rather it’s unmatched combination of sparkle, brilliance, durability, and overall superb physical  chemical properties.   

I guess the answer to your question depends on what you mean by “rare,” but be wary though and keep in mind that rarity in itself is not the dictator of a diamond’s value.  If there’s a “rare” gemstone out there, it doesnt really say much about the quality of the stone. 

Post # 6
Member
1752 posts
Buzzing bee
  • Wedding: February 2015

That’s a good question. It definitely costs much more for a better quality diamond, so it is a wonder if they’re not mined as often.

Post # 8
Member
1157 posts
Bumble bee
  • Wedding: June 2016

Higher quality stones are less likely to be found, but theres still millions stockpiled away. So yes, more rare in the scheme of the world, but still existing by the pound. So no, not rare. 

Post # 9
Member
639 posts
Busy bee
  • Wedding: August 2016

View original reply
Worried9887:  define rare. Perhaps you may benifit from looking up diamond resale value which proves that even large diamonds are not as rare as we are led to believe. Statistically and economically speaking, they as not rare, even the large ones up to a certain point. Something like the hope diamond is rare 😛 so there is an upper bound. 

Sapphires hold their value better, and natural emeralds and tanazanite are even more rare because the mines have been tapped/will be tapped. Synthetic stones are obviously not rare like synthetic sapphire so being able to tell the difference between man made and non man made is key (which is why some inclusions in a sapphire can actually jack up the price cuz it is unheated/natural.

Post # 10
Member
691 posts
Busy bee

Rare does not equal value, though. I have a very rare classic car, less than 20 exist. But it’s not worth squat. Basically, things are worth what people will pay for them.

Post # 11
Member
130 posts
Blushing bee

No, they aren’t rare. You already know that DeBeers has a monopoly on them but that is significant because that means they control how many diamonds they sell per year and which sizes/clarity, so if they only choose to sell a small amount of larger diamonds with better clarity, engagement ring manufacturers may choose to buy less and sell them at higher prices. Demand also plays a large role. Regardless of how many large diamonds DeBeers releases to the market each year, if demand for those diamonds is higher, retailers will charge more.

So basically, no they aren’t rare, there is plenty of supply but the supply is controlled to appear as if they are rare, and demand is high because DeBeers was effective at creating an artifical market in which they convinced people that they need a diamond/need to spend a fortune on one (demand) and that diamonds are rare and that bigger better more expensive diamonds are super rare (supply) even when they are not.

Post # 12
Member
691 posts
Busy bee

DeBeers isn’t the monopoly they once were, however, and diamond prices have been falling because the Chinese economy is going downhill. It’s a lot more complicated than “DeBeers duped us all and won’t sell us diamonds to drive up prices!”

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