Mined Diamonds
Why are diamonds so valuable?
People pay thousands, and hundreds of thousands of dollars for diamonds. Why?
The effort and investment to get just one diamond out of the ground and onto the finger of a happy fiancée is enormous. Each diamond passes through many hands.
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It is mined from the ground in an expensive and often dangerous process
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The mining company sells the diamond to a gem trader.
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The trader transports it to one of the diamond-cutting centers of the world, such as Antwerp, Tel Aviv or Mumbai.
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Highly skilled cutters apply their expertise to cut and polish the diamond into an exquisite gem.
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The cutter sells the finished diamond to a wholesaler.
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The wholesaler markets it to a jewelry maker, who creates an elegant piece of fine jewelry.
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The artisan sells the finished jewelry piece to a retailer.
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The jewelry store sells the diamond ring to an excited would-be fiancée.
Mined diamonds aren’t forever
Since the 1400s, when diamonds were becoming a highly desired fashion accessory for Europe’s aristocrats, the value of these gems has steadily increased. When vast new mines opened during the 19th and 20th centuries, the demand for these precious gems grew.
However, while some of the earliest diamonds were gathered from rivers and streams in India, most of today’s diamonds are mined from deep in the earth. And these sources are drying up.
Consider this:
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Most diamond mines are past peak production levels
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Deeper, more expensive, more dangerous mining is required to locate the remaining diamonds
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Budgets for mine exploration have been reduced and few new mines are expected to open
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Mined diamond production has fallen by more than 25% in less than 10 years
Mined diamonds won’t keep pace with demand over the next 30 to 40 years:
70m
Mined diamond production is expected to decrease by more than 70 million carats per year
300m
Demand for diamonds is expected to grow to 250-300 million carats per year
25m
Only 25 to 50 million carats of mined diamonds are expected to be available
Mined diamonds through time
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320 BC
First reference to diamonds in India, in Sanskrit manuscript, written by Kautiliya.
Roman naturalist Pliny the Elder said: “Diamond is the most valuable, not only of precious stones, but of all things in this world.”
77 AD
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1215
Pope Innocent III declared waiting period between betrothal and marriage, with rings to signify the couple’s commitment
Diamonds began appearing in European jewelry.
1240s
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1260s
Louis IX of France decreed that diamonds were reserved for the king.
Earliest diamond-cutting industry developed in Venice.
1330
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1380s
Diamonds were worn not just by royals, but by aristocrats.
Louis de Berqueur discovered how to cut facets of a diamond.
1456
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1477
First diamond engagement ring presented by Archduke Maximilian of Austria to Mary of Burgundy.
Pope Clement VII’s doctors dosed him with pulverized gems, including diamond, resulting in his death.
1532
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1550
Belgium became diamond cutting and trading center.
Catherine de Medici was famous for dealing out death by diamond powder.
1570s
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1580s
Diamond faceting enhances brilliance.
Diamonds discovered in Brazil.
1726
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1772
French chemist Antoine Lavoisier proved that diamond was composed of carbon.
Diamonds discovered in Australia.
1851
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1866
21-carat diamond found beside the Orange River in South Africa.
Diamonds discovered near Hopetown, South Africa, beginning modern diamond industry.
1867
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1871
83.50-carat deposit found, leading to the opening of the first large-scale mining operation, the Kimberly Mine.
De Beers Consolidated Mines Ltd. formed in South Africa.
1880
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1931
Gemological Institute of America (GIA) founded.
Ad agency coined slogan “A diamond is forever”.
1947
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1950s
GIA introduced diamond grading system: the 4Cs (color, clarity, cut, carat weight).
Geologists discovered the Argyle pipe in Australia, the richest diamond deposit in the world.
1979
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1995
Canada became the third largest diamond producer with discovery of diamond deposits in the Northwest Territories and Alberta.