What is the value of diamonds? To know the value of diamonds you have to know the price of diamonds.
There are two major factors that decide the value of diamonds, The supply and demand factor and the quality of the diamonds themselves as compared to other diamonds.
The supply and demand factor is determined by how many diamonds there are on the market (being supplied) and how much demand there is for the diamonds. Attempts to control this factor by promoting diamonds so people want them more and by stock piling diamonds to create a slight shortage keeps the general price of diamonds high. So the general price of diamonds is kept high by this dual activity of promotion and withholding diamonds at the same time and so the perceived value of diamonds is kept high.
DeBeers is a good example of this type of activity.
The falsity of this is demonstrated by the fact that many other gems, emeralds particularly, are often rarer than diamonds and worth more yet as they are being produced all around the world. However there is little one individual can do to change this and if you want to own diamonds you will have to pay the current price of diamonds.
The other factor is the cut, color, clarity and weight of diamonds. The characteristics and quality in other words.
Here you have a choice. You can decide what sort of diamond you want and how much you want to pay for it based on the qualities of the diamond. If you can afford it you can buy a large diamond of the best quality or if you have a restricted budget can buy a diamond that fits in with your budget. The important thing here is to understand diamonds and what makes one diamond worth more than another.
This means understanding the 4cs of diamonds, cut, color, clarity and carat and ensuring that any diamond you buy has a certificate that shows clearly these characteristics of a diamond and the true value thereby.
A study of this web site will help you to gain a thorough understanding of how diamonds are graded and the value of diamonds