Why are diamonds so expensive?
Diamonds come from underground, and they take millions of years to form. That makes diamonds very expensive because nobody can go out and farm them like you would with wheat or corn.
For example, if you have a farm, you plant seeds one year so that the next year there will be food for everyone, but you can not do that with diamonds. You cannot reproduce diamonds, so they will always be expensive because you have to mine them from the ground.
How do people make money off of diamonds?
Some companies own diamond mines worldwide, and they control how many diamonds come out of each mine every week. When mining diamonds, they put them in a machine that measures the quality of the diamond and tells them how much money it is worth.
The company sells the diamonds to wholesalers who sell diamonds to retail stores or even to other companies that will cut and shine them into engagement rings or necklaces.
How is the diamond price determined?
The price is determined by Color, Cut, Clarity, and Carat. When you sell or buy a diamond, these are the things that will determine its price. The most valuable diamond in the world is called “The Star of Africa,” It is 545 carats (111 grams). It was cut from a larger diamond by a jeweler back in 1988.
What makes the diamond’s price go up and down?
The price of diamonds fluctuates with their availability. As more diamonds are mined from the ground, prices will go down because there will be fewer diamonds for people to buy. Other factors that affect the cost are consumer demand and currency value.
For example, if a country is going through tough economic times, people will have less money to spend, so they may not buy as many diamonds as usual. Also, if the dollar has substantial value compared to other currencies, people from those countries might be inclined to save their money rather than buy a diamond.
What is unique about diamonds?
Unlike many other gemstones, diamonds are the only ones that sparkle. That’s why they shine so much and because being rare makes them so valuable. It makes diamonds unique because they are older than almost anything else on Earth. Diamonds have been around for over 4 billion years, which means they have been through many things like earthquakes, volcanoes, and erosion that made them into the stones we have today.
Can you burn a diamond?
No, it would be like trying to burn glass. Diamonds are made of carbon atoms which means they can be flammable if you put them in an environment with lots of oxygen, but diamonds can’t just burst into flames because there is no room for the fire to get inside the diamond. It’s physically impossible for a diamond to burn.
Diamonds are expensive because they take millions of years to form and mining is a costly process. Diamond’s price can go up or down based on the supply and demand, currency value, and weather. Diamonds are unique because they shine so much because of their age and rarity.