Undoubtedly, a diamond is quite an expensive gem in jewellery making. Its price is set so high in some countries that people belonging to the upper class can only afford to have the gems for themselves. As for other countries, either the diamonds are within the rich of the upper middle class or the upper richer section of the economic pyramid. Although there are a lot of myths surrounding the increasing price of a retail and wholesale diamond, the reality of their high valuation is completely different.
Therefore, we would like to shed light on these myths first so that you can understand the real reasons that affect the global valuation of the diamond market.
For example, if you get a regular cut of the diamond with a higher carat, its value will be less than a princess or cushion cut diamond with the same carat. Similarly, a 4-carat diamond with maximum clarity is high-priced than a gem with less clarity and of 4-carat size. Therefore, the gradings determine the price of the gem, not carat only. If the gemologist’s certificate marks all the grades, i.e., cut, color, clarity, and carat, to be high, the price will be higher.
A diamond supplier gets many gemstone orders but can supply only a limited number. Due to this imbalance in the demand and supply chain, the market price of the gemstone is so high.
Engineered or lab-grown diamonds are also original since their chemical composition is only carbon. They are prepared under extreme heat and pressure, just as natural diamonds formed so many years ago. Therefore, both classes of gemstones are costly.
But that’s not the truth. Colour determines the price in terms of its intensity. For example, a purple diamond is costlier than a light or faded pink diamond. But there are better ways than comparing the price of red and black diamonds.
So, the brand established a monopoly game where they supplied fewer batches of diamonds and manipulated the market by spreading the word that it was a rare gem and of high emotional value. With this, the price further increased, and diamonds have been expensive since then.
Therefore, we would like to shed light on these myths first so that you can understand the real reasons that affect the global valuation of the diamond market.
Myths surrounding the high price of a diamond
Diamond price increases with the size
Often people believe that the diamond price increases with size. It means the higher the carat, the greater the price will be. Well, the statement is partly true and partly false. It is true that with a higher carat, the total valuation of the gem increases. But it is only partially true because the total valuation will depend on other C’s of diamonds.For example, if you get a regular cut of the diamond with a higher carat, its value will be less than a princess or cushion cut diamond with the same carat. Similarly, a 4-carat diamond with maximum clarity is high-priced than a gem with less clarity and of 4-carat size. Therefore, the gradings determine the price of the gem, not carat only. If the gemologist’s certificate marks all the grades, i.e., cut, color, clarity, and carat, to be high, the price will be higher.
Diamonds are rare gems, and that’s why they are so pricey
People also believe that the high price of diamonds results from their rare presence in the market. They think that as the gem is rarely found and mined in certain areas of the earth only, the overall price of the gem is so high. But that’s not the truth. Based on the availability and the demand, the supply and demand cycle in the diamond market is quite astonishing.A diamond supplier gets many gemstone orders but can supply only a limited number. Due to this imbalance in the demand and supply chain, the market price of the gemstone is so high.
Mined diamonds are the real ones
Whether you buy the gemstones from a retail or wholesale diamond supplier, the price does not increase with the mined diamonds. It is a myth that diamonds obtained from the earth are the costliest, followed by engineered or lab-grown diamonds. Although there are certain price differences between these two diamond types, the cost certainly doesn’t drop from millions to a few bucks.Engineered or lab-grown diamonds are also original since their chemical composition is only carbon. They are prepared under extreme heat and pressure, just as natural diamonds formed so many years ago. Therefore, both classes of gemstones are costly.
White diamond is costlier than coloured ones
Another common myth regarding the price of diamonds is the colour. People believe that the transparent diamond supplier KGK diamond is costlier than the coloured ones. They consider black diamonds the cheapest on the market because of the high level of impurities in the gem.But that’s not the truth. Colour determines the price in terms of its intensity. For example, a purple diamond is costlier than a light or faded pink diamond. But there are better ways than comparing the price of red and black diamonds.
The real reason for the high diamond cost
According to the latest news, market manipulation is the real reason behind the high cost of diamonds. During the 1800s, De Beers unearthed a huge supply or trove of diamonds in Kimberly, South Africa. The abundance of the gems threatened the current market, and De Beers knew the price would fall if these gems were released at once.So, the brand established a monopoly game where they supplied fewer batches of diamonds and manipulated the market by spreading the word that it was a rare gem and of high emotional value. With this, the price further increased, and diamonds have been expensive since then.
