The Diamond Industry

Only diamonds are hard enough to cut other diamonds.  Polishing and ;mounting add further value, brilliance, and appeal as jewelry.  Diamonds are not forever.  However, owing to a very large kinetic energy barrier, diamonds are metastable; they will not decay into graphite under normal conditions.

Because of the diamond's high dispersion and unsurpassed hardness, they have long been prized as desirable for jewelery.  A large trade in gem-grade diamonds exists, mostly controlled by the De Beers company, which has used its  monopoly to manipulate prices.  Unlike precious metals such as gold or platinum, there is a substantial mark-up in the sale of diamonds and there is not a very active market for resale of diamonds, making them rather unsuitable as investments or as a store of value.

At one time it was thought over 80% of the world's rough diamonds passed through the Diamond Trading Company,  DTC,  a subsidiary of De Beers  in  London, presently the figure is estimated at 60%.  In the late '90's  Canadian prospectors dis o ered several rich sources of diamonds.   The Ekati Diamond Mine, was opened in 1998, and produces 3 million carats of rough diamond every year.  In 2004 the Diavik Diamond Mine was  opened.

Diamonds are valued according to the four  C's of diamond grading,  cut, clarity, color and carat.  Both rough and cut diamonds are graded and separated based on these four characteristics at a number of  heavily guarded grading centers, such as the DTC.