Why are diamonds so expensive when they are not rare jems?

They are in all jewelry stores, they operate in different parts of the world and are somewhat easy to find. They pay those who mine evil. They instruct those who buy them too badly.

It is a simple matter of Supply & Demand. Although there is a vast supply of diamonds, not all diamonds are created equal. In diamond jewelry business are generally evaluated according to the four C's: Carat (weight), Clarity, Color and Cut. These include product differentiation between the large number of diamonds that could be dug from the ground. The first three Cs – Carat, Clarity and clour – are determined naturally. The application of these criteria alone reduced the supply naturally available "quality" of diamonds dramatically. Most of those who enter by the side of the road are used for industrial purposes, even if a layman, many of them may seem just as attractive as the quality of gemstones diamonds. The fourth C, Cut, is a entirely artificial distinction. Cutting a stone highlights her natural beauty and the difference between a good and a poor cut can make or (metaphorically) break a diamond. A number of regular cuts have changed over the years, some of which are more complex and sought after than others. Cut diamond a skilled trade, so the distinction between cuts is another way that the supply of quality diamonds is actually limited. Finally, it is interesting noted that the vast majority of diamond supply in the world is controlled by a few large companies. It is clearly not in their interest to flood the market.

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