ELI5 – Are Diamonds rare?

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There seems to be tonnes of sentiment that they are rare, which can be seen in the value and the timescales to source a mining opportunity and operationalise it. We see this in the price.

However, there’s also significant sentiment that the rarity is a conspiracy, artificial rarity to inflate prices.

What is the truth on this subject?

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3 Answers

Anonymous 0 Comments

A company called De Beers began an intensive marketing campaign in the 1800s, and artificially inflated demand by purchasing diamond mines and only releasing enough gems each year to barely meet demand; this gave the impression that they were rare/depleted. Their marketing is the reason diamonds are associated with engagement and romance; prior to their campaign, rubies and sapphires were the tradition.

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