Understanding diamond value is important when considering making a purchase. Being skeptical is a good thing. One should never be naive about the purchase or investment they are about to make. This is especially true when it comes to understanding diamond value as well as the value of jewelry. Many people today question the true value of diamonds, gold, and jewelry altogether.
In fact, there are now blog's claiming to "expose" trade secrets, making outrageous claims such as or "diamonds and jewelry are a scam," or "engagement rings have no historical significance." An example here: http://blog.priceonomics.com/post/45768546804/diamonds-are-bullshit. In all of documented history gold and precious gems have always had value.
The Importance of Understanding Diamond Value
That is why it is imperative understanding diamond value. Gold, silver, platinum, diamonds, rubies, sapphires and other precious gems have always played an intricate role in economies from ancient times to modern. The United States used the Gold Standard to back their currency until 1913. The jewelry business accounts for some $60 billion of trade worldwide annually.
One Ira Weissman suggested that diamonds and engagement rings had no history of significant importance before De Beers's 1947 marketing campaign. (http://www.huffingtonpost.com/ira-weissman/7-reasons-why-you-shouldn_b_1720870.html). This statement is outright false. Well known and documented ancient civilizations in India no less than 3,000 years old prove diamonds have been treasured as gemstones since their use as religious symbols. Furthermore, in Western civilization, the history of engagement rings is traced back to the time of the Roman Empire. No less than 2,000 years old.
Understand Diamond Value and History
The idea of engagement rings is an ancient tradition. That is why many people continue to practice marriage rituals. The concept of betrothal is when two people become one unit; Wikipedia explains, " a socially or ritually recognized union or legal contract between spouses that establishes rights and obligations between them, between them and their children, and between them and their in-laws." The engagement ring is a universally recognized physical symbol of betrothal and is embedded in human culture. For these reasons one could suggest the engagement ring only holds intrinsic value. This notion, however, is only partially correct in that there may be more intrinsic value in your diamond and engagement ring than extrinsic. However, there is extrinsic value in the material itself.
The engagement ring is a universally physical symbol of betrothal, par of human culture. For these reasons one could suggest the engagement ring only holds intrinsic value. This notion, however, is only partially correct in that there may be more intrinsic value in your diamond and engagement ring than extrinsic, however, there is extrinsic value in the material itself.
Diamonds Intrinsic Value Versus Extrinsic Value
History shows intrinsic value and extrinsic value have intertwined and go hand in hand. One such example of this is on display in ancient civilizations of South America where gold and gems were fashioned into deities and not only worshiped but also served practical purposes for bartering. We see that ancient cultures worshiped gold, diamonds and precious gems and consequently used them as a form of currency when bartering.
As the world's economies continued to evolve and develop people then started specializing in specific trades; thus allowing the jewelry trade to become a niche in the economy. This process was a natural transition from bartering for precious items to using modern currency. Nothing has changed with regards to how we acquire gold and diamonds except for in which from or currency we use.
Understanding Diamond Value and Cheap Goods
Clean white diamond material is expensive and valuable. It takes a roughly an unimaginable 250 tons of earth to produce a 1 carat gem quality diamond (http://instoremag.com/imonthly/376-instore/store-advice/column/shane-decker/2045-shane-decker-rare-earth). A gem quality diamond is a diamond that falls into the category of no lower that Si3 in clarity. This is the lowest level of gem quality. Based on the fact that gem quality diamonds require an immense about of effort to mine and are rare, they are expensive material.
The largest diamond manufacturers spend millions of dollars on their mining, cutting and polishing operations. Like any other business, they must make a profit for their services and merchandise. The extrinsic value lies here; a tangible and rare material that does not disintegrate and will literally last forever, and a material that cannot be scratched or damaged by anything other than another diamond or a laser. The fact that human beings have an emotional connection with their possessions (intrinsic) only amplifies their value (extrinsic).
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Diamond and Gold Engagement Ring, Pave Set