Diamonds are a precious natural resource, and yes, they are quite rare. As a finite resource, the rarity of diamonds increases over time. Plus, it is very difficult to create or produce these stones naturally or otherwise, as it requires extreme heat and 825,000 pounds of pressure per square inch.
On top of this, the process of extracting diamonds is quite laborious. Mines move about 200 tons of dirt per carat of diamond found. Diamonds are mined in over 30 countries, but Canada, Botswana, and South Africa are some of the leading diamond producers.
Gem-quality diamonds are relatively few, more rare than raw diamonds. In fact, only about 1 in a million diamonds are quality one-carat stones, only 1 in 5 million are 2-carat; and 1 in 15 million are 3-carat. These numbers show how uncommon it is to find high-quality diamonds of substantial size, or those that are worth investing in.
Though there may be seemingly endless diamond fragments sprinkled into the soil around the world, finding larger loose diamonds that can be used for jewellery making or investment is more challenging and less common. This rarity increases the value of diamonds and makes them a great opportunity for investment. As the scarcity of diamonds increases over time, so will the stones’ value.
Though diamonds are a rare commodity, their value may not always be tied to this fact. The prices of diamonds increase along with the inflation rate. In some periods, the demand is higher than the supply whilst in other periods this is reversed. In the end, there is always a balance.
Interested in learning more about how to best invest in diamonds so you can take advantage of the financial benefits of this rare commodity? BNT Diamonds offers a vast selection of quality investment diamonds. Get in touch with our experts or request a quote today.