Here Are the Reasons Why Diamonds are Extra Expensive

Here Are the Reasons Why Diamonds are Extra Expensive

When you visit a jewelry store, pink engagement rings store, or diamond ring shop, the first thing you would notice is how expensive these shiny rocks can be. If you are not a fan of jewelries to begin with, you may wonder about the reason behind the high price tag for diamonds. Knowing the differences between real diamonds and not will save you a lot of money and time.

Mining from the Depths of the Earth

Buying a diamond is not like buying any ordinary item because in order for this precious stone to be in display in jewelry shops, it must first undergo thorough and long process. As we all know, diamonds are excavated from the deep parts of the Earth through mining. To begin with, mining is no inexpensive activity as it entails hundreds to thousands of laborers, tons of equipment, and lengthy legal processes. The risks involved in mining are definitely another factor why diamonds are expensive and rare. These factors add up to the market value of diamonds.

Polishing Before Hitting the Market

When diamonds are excavated from the mining sites, they are just ugly and uninteresting rocks to say the least. The process to make it shiny and elegant starts with the polishing stage. During this process, diamonds are cut and polished to take the image of what we know about diamonds. This process requires precision skills using sophisticated and high-tech equipment. Again, these factors are an addition to why diamonds are being sold at a very high price in the market.

Shipping to Jewelers

When diamonds become truly diamonds, the next step is to ship them to dealers. Shipping of diamonds is no ordinary task because there will be people who will do anything to get their hands on these precious stones. Logistics involved in shipping of diamonds from one place to another can be a nightmare and naturally risky. The security of shipments is always a top priority, and also comes in high price. Hence, the high price of shipping diamonds is also factored in on the final market value.

Legal Processes and Government Corruption

Since diamonds are expensive and quite rare, they are easily subjected to strict regulations set by the government of the country where it will be sold. Legal processes can be time-consuming and somewhat expensive. Dealers have to abide by these regulations to ensure the protection of their business and the welfare of the consumers. Sadly, in countries were corrupt government officials are dominant, dealers also have to pay extra to ensure they will not have a difficult time selling them. Needless to say, these expenses are also consolidated.

Rarity and Exclusivity

As the law of supply and demand points out, the rarer the item, the more expensive it is. Since diamonds are not produced in a large scale, only few of them are sold in the market, making them rare. Because they are rare, prices can go easily go north. Additionally, because diamonds symbolizes exclusivity, they are sold at high value.

While diamonds are priced at a very high value, you can still get your hands on it at a relatively lower price through wholesale dealers. In Australia, you can always consult with a diamond expert to know about the prices of loose diamonds and jewelries.

If you wish to buy these precious stones from a pink engagement rings store, make sure that you will only deal with legitimate dealer since there are so-called dealers that are targeting unsuspecting and inexperienced shoppers. Hence, it is always best to shop around first and to verify shops credentials first before finalizing a purchase.

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