What Gives A Diamond Its Value

What gives a diamond its value? Is there something intrinsic in the physical product itself, or does value mostly come from how the industry positions it?

I put that question to a group of industry professionals during a panel discussion on The Way Forward for Natural Diamonds at the VicenzaOro show on Sunday. As moderator, my aim was to use the idea of value as a way into a broader conversation about how we engage today’s consumer.

The answers leaned heavily on emotional value, with only a passing nod to rarity. That, in itself, was telling, as it suggests that diamond value may rest more on messaging than we like to admit.

I’ve asked this question before and received a wider, and frankly more satisfying, range of responses. One that has stayed with me came from a Jewish Hasidic diamantaire who introduced a spiritual dimension to the discussion. Diamonds are first referenced in the Book of Exodus, where yahalom appears among the 12 stones set in the breastplate worn by the High Priest during temple service.

While it’s disputed whether the biblical stone is the same material we call a diamond today, the point still holds. It suggests that diamonds have long been regarded as objects of value, not merely because of what we say about them, but because there’s something intrinsic in the product that makes it desirable and a thing of worth.

I believe there is something intrinsic in a diamond, or more accurately, a combination of elements, that supports its emotional pull. As the panel discussion wrapped up, it became clear that this idea could form a stronger foundation for how the industry talks about diamonds, and how it educates the consumer.

This blog first appeared in the January 19 Pressing Matters Executive Memo. Read the full memo here, Pressing Matters, featuring the following sections:

• Your Take: What, in your view, gives a diamond its value?

• In Focus: VicenzaOro

• What to Watch: The Diamond Industry Must Shrink to Survive

• Chart Check: Richemoin's Jewelry Maisons Revenue

• The News That Matters

• Coming Up

• Pic of the Week: Out of Africa

Out of Africa: Petra Diamonds recovered a 41.82-carat Type IIb blue diamond at its Cullinan mine in South Africa. Resembling the map of Africa, the stone appears to be of exceptional quality in terms of color and clarity, the company said, adding that it is analyzing the diamond and assessing the preferred method of sale.(Image credit: Petra Diamonds)