Why Are Loose Diamonds So Expensive?

Everyone loves to stare at the beautiful loose diamonds on display at the local jewelry store. Most people know these loose diamonds are pretty, shiny and come with a very large price tag and that is about it. If you were to ask people about any other facts about diamonds, they would probably be at a loss.

If you are like me, you want to understand why something costs so much money. What makes this tiny gemstone so valuable? A lot of these questions can be answered with an explanation of the economy and supply and demand, but you must also consider what it takes for the earth to create these gorgeous and expensive diamonds. Yes, diamonds are made naturally within the earth.

The certified loose diamonds you see in your local jewelry store have traveled a very long way before getting in your sights. Over one hundred miles into the center of the earth is where they get their start. After developing for billions of years, they are thrust toward the earth's surface via volcanic eruptions. Even after this, miners must dig with expensive machines and tools in order to harvest the loose diamonds that will eventually be cut, polished and sold to jewelry stores to make lovely jewelry.