• Why are good-quality diamonds so valuable? 
• How did abundant new diamond supplies affect the market? 
• How does formation affect value?

Diamonds are more available and affordable today than at any other time in history. At the same time, while diamonds are relatively abundant, diamonds with high clarity and good color are still quite rare.

Diamonds form under tremendous temperature and pressure. Then they’re brought to the earth’s surface in cataclysmic eruptions at rare times throughout the earth’s long history. The geologic process that brings diamonds to the surface is so violent and explosive that it’s a miracle that diamonds survive it. In fact, large crystals rarely survive intact.

Diamond formation and mining are covered in more detail later in this course. This brief introduction will help you understand why these subjects are important to an appreciation of the many factors that affect diamonds and diamond value.