Diamonds are popular as ‘forever stones’ to ‘girl’s best-friend’ today. Being a gemstone with a history of billion years, exploring the attribute, uses, history and investment value of diamonds is a must for collectors. Use the guide below to know all about the value of diamonds in ten minutes!
How are Diamonds formed?
Diamonds are formed on earth under high pressure about 100 miles under the Earth’s surface. Moreover, there are diamonds as a result of asteroid and meteorite impacts on earth too!
Where do Diamonds Come from?
Most of the diamonds come to the surface of the earth because of volcanoes.
Attributes of Diamond
Diamond as a gemstone is popular in history and science because of its extraordinary attributes.
- Hardness on Mohs: 10
- Density: 3.52
- Thermal Conductivity: 2200 W or 5x Copper
- Colors: Blue, Red, Orange, Pink, White, Green, Black, Purple, Brown, and Colorless;
- Price: $1000 to $5,000,000 per carat;
Historic Value of diamonds
Archaeologists found diamonds dating back to 1 billion to 3 billion years. Diamonds were lost for centuries since appearing in India towards 4th BC. From the earliest diamonds of India to the Kimberly mines, explore the historic value of diamonds from 4th century BC!
- Diamonds in the Early Ages
The earliest record of diamonds dates back to 4th century BC in India. Moreover, history quotes diamonds were collected from rivers and alluvial deposits. It was used by the elite caste in India. After trade routes from established, diamonds from India reached the clergy class of Europe in the 15th century.
When the supply of diamonds began declining in the early 18th century, gold miners found diamonds in Brazil. In 1725, Brazil became the sole diamond geezer for the next 150 years because of the discovery of diamond deposits.
- History of Diamonds from 20th Century
Kimberly Mine in South Africa
When Erasmus Jacobs found a 21.25-carat pebble in the Orange River at the age of 15, diamond enthusiasts rushed to South Africa. Within 5 years, another 83.50-carat diamond-surfaced in Colesberj Kope, in 1871. As a result, Kimberly Mines in South Africa led to the largest ever diamond mining operations until date.
Diamond History of DeBeers
Diamond production in 1870 peaked at one million carats. In 1880, Cecil John Rhodes from England formed De Beers Consolidated Mines Ltd. Moreover, De Beers controlled 90% of diamonds in the world within 20 years of forming. Hence, they controlled the diamond prices until the 21st century.
Estimates show the diamond value fell by 50% in the early 20th century. As a result, De Beers appointed state of the art advertisers.
N.W Ayers advertising is popular for designing the phrase ‘a diamond is forever’ for World’s first ‘diamond engagement rings’ in 1947. The campaign was so successful that 80% of engagement rings today are made with diamonds!
Diamond Production in 20th Century
In the late 1900s, multiple diamond mines were discovered across the world. Out of which, Botswana mine was found in 1982 and Australian diamond mine in 1985. In 1931, Robert Shipley founded GIA, the Gemological Institute of America. As a result, 20 years later GIA created the 4Cs (Cut, Clarity, Carat, and Color) of Diamonds.
Total diamond production in 1920 was three million carats, which spiked to 50 million carats in 1970. Moreover, within the late 20th century, the total diamond production rose to 100 million carats!
- Diamonds in the 21st Century
Even though diamonds secured a new record as the most precious stones in the world, the funding was not transparent.
Warzone diamonds are blood diamonds today as they fund illicit activities. As a result, diamonds from war zones of Africa such as Sierra Leone, Angola and Democratic of Congo are the avoided in conflict-free diamonds.
With diamond certification bodies becoming stricter, you can invest in conflict-free (non blood-diamonds) by buying from a reputable diamond vender today.
Uses of Diamonds
Diamonds in the 21st century saw a booming trend, thanks to DeBeers advertising. As scientists explored the superior powers of diamonds, uses of diamonds became multifarious. Learn the true applications and uses of diamonds in 2018!
- Jewelry and Engagement Rings
Diamond jewelry investments triple your profits if you select the right stones.
According to Rio Tinto, you can procure rough diamonds for $9 Billion and cut them for $14 Billion. Moreover, in wholesale jewelry, the same diamonds are sold for $28 Billion while retail diamonds fetch $57 Billion. Hence, it is undoubtedly profitable to invest in diamonds.
- Cutting and Drilling
The high-abrasive nature of powdered-diamond makes it ideal for drilling and cutting hard surfaces. Hence, polishing and research including aviation use diamonds.
- Diamond Windows
Thin membranes made from diamond are used to cover the laser, vacuum chamber, and x-ray openings. This is because of the superior resistance to heat in diamonds.
- Speakers and Audio
As diamond can vibrate fast when made into a thin dome, diamond speakers are popular. Moreover, diamond speakers are best for high-quality sound production.
- Electronics and Microelectronics
Diamonds prevent overheating of sensitive electronic devices such as watches. Moreover, Microbearings of low friction also use diamonds for its high durability.
- Diamond Bourses
When diamond gemstones are sold at diamond exchanges, it is referred as diamond bourses. Moreover, according to statistics, there are 28 diamond bourses internationally.
Reasons for investing in Diamonds
Diamonds are still the ‘stone of the elite’. Is it really viable to invest in diamond? Listen to the suggestions from experts on why investing in diamonds is a smart choice in 2018. Moreover, it will help you assess how well diamond investments churn out profits!
- Depleting Diamond Deposits
If you know diamonds are scarce, it is wise to know the total diamonds mined consist of merely 20% gem-grade diamonds. Moreover, merely 2% turn up as investment grade diamonds out of this!
According to mining statistics, 250 tons of diamond ore produces 1-carat diamond with high qualities. Being a rare stone, investing value of diamonds are high. Hence, grab your rare diamond before it’s too late!
- Application of Diamonds
From electronics to medical equipment and high-quality speakers, diamonds are used extensively in new age gadgets. This is because diamond is the hardest precious stone with high resistance to wearing and tearing.
An estimate of 75% to 80% diamond produce directly goes to the industrial use including medical. This is because diamond is resistant to financial recession and is hence, a good choice of investment.
- Engagement Rings
Pope Innocent III brought forth the idea of betrothal and engagement rings. Betrothal was a time for introspection for couples and the ring stood as a symbol of love. In the 20th century, DeBeers, created the diamond hype, leading to the trend of diamond engagement rings.
Majority of engagement rings are made with diamond center stones today. Moreover, celebrities like Kate Middleton, Jullliane Hough, and Ryan Reynolds recommend the use of diamonds.
- Matchless Value of Diamonds
A diamond is valued based on its crystal structure including cut, clarity, color, origin, and carat. Once, appraised the value of a diamond does not depreciate.
One perfect carat of a diamond fetches $1000 to $5,000,000. Based on the inclusions, color, fluorescence, and area of mining, investment grade diamonds can multiply in value over time!
- Costliest Gemstones
Blue diamonds are the costliest gemstones available in the world.
- Blue diamonds are priced from $3,000,000 to $5,000,000 per carat.
- Moussaeiff Red Diamonds are sold for $2,400,000 per carat.
- Orange colored diamonds fetch $2,300,000 per cart.
- Pink Star Diamond is priced at $1,400,000 per carat.
In a Nutshell
Having 10 on the Mohs scale, diamond does not break or chip easily like other stones. Hence, it is the hardest and the priciest stone on earth now. Being a rare crystal, investment-grade diamond is becoming scarcer.
Book a FREE consultation with our mineral expert to know the future value of diamonds!