Are Diamonds Rare?

Some say diamonds are far from rare, some even claiming they’re among the most abundant minerals on Earth. Yet, despite these assertions, the price tag attached to diamonds remains steep.

Here’s what you need to know about the intricacies of diamond rarity and quality, and their significant influence on pricing.

How Rare are Diamonds?

The answer is nuanced.

Diamond rarity is reflective of the rough diamonds, amongst the millions of mined diamonds annually, that are actually suitable for gem-quality pieces for diamond cutting. Diamond cutting transforms rough stones into high quality diamonds perfect for jewelry. Once cut, these real diamonds, distinguished by their exceptional clarity, color, and carat weight, represent a small fraction of the total diamonds mined. The vast majority of diamonds produced annually end up used for industrial purposes, not for diamond rings or engagement rings.

Market dynamics also influence diamond rarity. Major diamond producers have historically managed supply to maintain high prices, creating an illusion of scarcity. Now, though, technological advancements and discoveries of new deposits have made natural diamonds more accessible.

Thus, while certain high-quality or uniquely colored diamonds are incredibly rare, the general notion of diamond rarity is more a product of controlled supply and marketing narratives than of natural scarcity.

The Influence of De Beers in Diamond Markets

The rise of diamonds as symbols of wealth and romance can largely be traced back to the De Beers corporation’s strategic moves.

After launching the first large-scale diamond mines in South Africa, De Beers embarked on one of history’s most iconic marketing endeavors. The company created the idea that a diamond is essential for any engagement ring. Additionally, leveraging Hollywood’s influence, De Beers ensured cinema’s brightest stars sparkled in diamond jewelry, further cementing status among the elite.

Even as De Beers won over public sentiment, the company’s promotional efforts didn’t wane. The discovery of high quality diamond deposits in the Soviet Union spurred De Beers to market wedding bands alongside diamond engagement rings, capitalizing on a new influx of smaller, high quality diamonds.

De Beers Controversies

While De Beers’ influence on the diamond industry is undeniable, the De Beers legacy is marred by controversy. As diamonds were found across Africa and South America, De Beers consolidated control over the global diamond supply, employing methods that were, at times, alleged to involve extreme criminal activities.

Additionally, De Beers dominated the diamond market, managing the supply to match demand, meticulously inflating prices. Despite abundant mining, regulated diamond sales ensured a steady increase in diamond value, as De Beers stockpiled unsold gem diamonds.

However, things would quickly change.

Following the dissolution of the Soviet Union, Russia did not renew its distribution agreement with De Beers, entering the diamond market independently and, while De Beers’ stockpile diamonds were valued at $5.2 billion in 1999, the company soon agreed to halt diamond stockpiling. In 2004, De Beers admitted to price fixing in a U.S. federal court plea.

The Rarest Diamonds

Truly rare diamonds exhibit unique color variations, extraordinary clarity, and exceptional size. Color plays an important role particularly in the realm of fancy colored diamonds, where hues like pink, blue, and red fetch premium prices.

• Red diamonds are the rarest, with only a handful of true red diamonds known to exist.
• Blue diamonds,made famous by the Hope Diamond, owe their color to boron impurities and are treasured for their striking hue and rarity.
• Pink diamonds, particularly those from Australia’s Argyle mine, command high prices at auction due to their scarcity and color.

However, color saturation and hue can greatly affect market value, with even minor variations leading to significant price differences. In contrast, colorless diamonds are graded on how devoid of color they are, with the highest grade (D) being more sought after and pricier, despite the challenge of distinguishing them from slightly tinted counterparts.

How Common are Diamonds Compared to Other Gemstones?

So, are diamonds really rare, and are diamonds scarce compared to other gemstones?

Diamonds might not be as scarce as some other gemstones. Yet, diamonds’ popularity, particularly for engagement rings and diamond rings, persists due to successful marketing and controlled supply by major diamond producers.

However, are diamonds actually rare? While certain colored diamonds are indeed rare, a natural diamond as a whole is more accessible than the public might perceive.

FAQs

How many diamonds are mined annually?

Over 140 million carats of diamonds are mined annually.

Are diamonds common?

Diamonds in their rough form are common enough to be used in a wide array of industrial applications, from cutting tools to abrasives, due to their unmatched hardness. However, the availability of gem-quality diamonds suitable for jewelry is far less, making those diamonds more prized.

How rare are diamonds actually?

While rough diamonds are relatively plentiful, gem-quality diamonds are much less common. High-quality, large, and especially colored diamonds are rare and fetch premium prices.

Protect Your Investment

Jewelry insurance is an important consideration when buying diamond rings and accessories, as these precious stones can be worth a great deal of money. At BriteCo, we provide comprehensive and affordable jewelry insurance. Our policies include protection against loss, theft, and damage anywhere in the world, so you can rest assured that your rare diamond is protected and in good hands.

Related Articles:

Types of Diamond Clarity
What Do the Diamond Symbols Stamped on Jewelry Mean?
How Much is a Half-Carat Diamond Worth?
How Much Are Diamonds Worth?
How are Diamonds Formed?
Are Green Sapphires Rare and What Do They Offer?

Get a Quote:

The Easy Way to Insure Your Jewelry - and Save Money!

GET YOUR FREE QUOTE TODAY →