The Economic Value Of Diamonds

This one is easy to calculate since the diamond is 1 carat the price for the stone is exactly the same 4 100.

The economic value of diamonds.

Diamond is one of the most durable and versatile substances known. Diamonds have no intrinsic value beyond their scarcity and so the discovery of new diamond mines in 1870 caused existing diamond producers to band together and form a cartel called de beers. Canada exports about 1 3billion worth of diamonds each year. In this case the total utility of diamonds is 200.

The huge influx of supply meant that de beers had to find a way to ensure that diamonds were never resold. The diamond industry creates a lot of jobs. Lets say a 0 50 carat diamond has a price of 1400 per carat. The impact diamond revenues have on world economies includes.

The diamond trade contributes approximately 7 6 billion per year to africa. These unique stones are almost as old as the earth itself and have become culturally socially economically politically and even scientifically significant. Once a price has been determined based on this report jewelers will make adjustments based on cut girdle culet and other secondary factors. However there are many uses economic values of diamonds.

Per point value of diamonds increases the larger the diamond is so a 1 01 carat diamond may cost significantly more than a 99 carat diamond despite the fact that they are almost exactly the same. The two countries russia and botswana together produce 43 of the total volume and 53 of the total value of rough diamonds in the world. Figures from the world diamond council state that each year around us 13 billion of rough diamonds are mined 65 of which come from africa. This industry employs around 10 million people worldwide.

But since the reality is that 1 carat diamond prices range from 1 900 to 16 000 and 2 carat diamond prices range from 8 000 to 84 000 which is a huge difference so as a general rule of thumb in today s market my recommendation for best value for money diamond would be g color si1 clarity no fluorescence and at least very good cut and very good polish symmetry. It is the strongest type of chemical bond. Or let s say that a 1 carat diamond has a price of 4 100 per carat. But you may only want to buy two in your lifetime.

The marginal utility of one bottle of water may be 1. That diamond s price for the stone would be 1400 0 50 or 700. The marginal utility of one diamond may be 100. The diamond value chain from exploration to mining processing and retail employs over 10 million people around the world and jewellery sales alone having grown three fold in 25 years.