Diamonds are expensive because they’re considered rare even though tens of thousands of stores around the world sell them and always have them in stock

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Artificial scarcity. A lot if their value also lies in the idea that it is a diamond which is supposed to be rare and expensive.

CJamesEd

Yep. You can also just grow diamonds now in a lab that are almost indistinguishable from natural. But humans are odd creatures. If someone hasn’t dug it out of the ground it’s not worth as much.

Nuke42

There are plenty of diamonds in the construction industry being use as tools for cutting. They’re not rare.

porky1122

Things don’t have to be rare to be exclusive. If nobody in the world will give you a 4ct diamond for a price you can afford, as far as you are concerned, the things are scarce. Facebook launched on exclusivity, not rarity. First it was Harvard only, then Ivy League only, then only university students, then once they had market share they’d let any grandma open an account. Exclusivity is what gets people’s attention.

motosandguns

They are valuable because of their hardness scale. You cannot scratch a diamond but it can scratch almost anything.

vege12