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by SideburnsOfDoom 3479 days ago
How cheap can good quality diamond get?

If you're buying raw carbon in the form of coal, it costs about $40 per ton.

The rest is manufacturing details. I know there's a lot of manufacturing details, but the cost of the inputs suggests that diamonds in bulk could be much much cheaper.
1 comments
ericfranklin 3479 days ago
If a large enough production facility (no R&D) had nearly every growth cycle yield large enough, colorless, flawless diamonds (or close to it), the retail prices could come down more than they currently are. However, that does not reflect the current reality and all producers today are basically in R&D mode with mixed success rates and mixed finished quality.

If someone showed up tomorrow with a check for several million dollars, I believe we could "disrupt" the current diamond pricing within 3-5 years. However, as I mentioned in another post in this thread, raw cost of production will still keep those "disrupted" non-R&D diamonds much more expensive than moissanite, CZs, sapphires and other gemstones.

Diamond is a form of carbon, and its growth is more-or-less determined by nature. The cost of production over time will be more similar to an industry like steel, than assembled goods like TVs or computers. There are improvements to be made, but they are more linear over time, than exponential breakthroughs.

For raw carbon, we use a highly refined and purified form of graphite. If you used the $40/ton coal, you would not be successful in growing jewelry-quality diamonds, and even if you did, the other costs wouldn't really change your ultimate price much.

Another analogy is gold. You can buy a 1 Troy-ounce bar of 24 karat gold for a bit over $1000. However, a solitaire engagement ring with much less actual gold content can cost more than $1000. People ask why the jewelry is more expensive, but don't include the cost for refining and alloys, design, 3D printing or molds, casting and investments, polishing, setting, shipping, ring boxes, and all the other overhead associated with turning that gold bar into a sold, ready-to-wear ring.

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