Why are diamonds so expensive?

Question by chloefr Reward: 500 Pond Points + 10 Knowledge Tokens Status: Answered
Can someone explain why do diamonds cost so much? And how can you tell if you are getting a good deal?



Reply from AeroSpear Accepted answer! User Rating:  80 Knowledge Tokens
The reason diamonds cost so much is due to the fact that only a few companies are in the diamond business. They artificially inflate the price by buying up all they can and storing them in their warehouses, thereby controlling the supply to the market which has a direct effect to the market price. The less supply of a good or service + High demand = High price. The other factor is that the diamonds pass through a lot of middle men, each one tacking on their mark-up so that they turn a profit for themselves.
As for getting a good deal, see the post above.
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Reply from John_5243 User Rating:  260 Knowledge Tokens
Here is an awesome article done by Dateline NBC a couple years ago regarding "getting a good deal" and what may be happening behind the scenes at jewelry stores.
http://www.msnbc.msn.com/id/8661995/

As it turns out, you really have to be careful about trusting any appraisal as they can vary greatly from lab to lab, (or even within the same lab according to Dateline's experiment). Most appraisals that jewelry stores will give you are grossly inflated, so expect to pay much less than the appraised value.

You may want to have a trusted appraiser look at the stone before you purchase as that may end up saving you hundreds of dollars.
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Reply from drrog User Rating:  20 Knowledge Tokens
Because they took SOOOOOOOOOO LOOOOOOOOOONG to make
DrRog
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Reply from JackPotttt User Rating:  0 Knowledge Tokens
Because the supply is controlled by a few companies such as DeBeer.
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