A very rare 59.6 carat pink diamond, about to be auctioned off at Southeby’s, is expected to fetch $60 million dollars. David Bennett of Southeby’s said the diamond belongs in “the ranks of the earth’s greatest natural treasures”. It was mined by De Beers in Africa in 1999, has received the highest possible color and clarity rating from the Gemological Institute of America (GIA).  Before being cut, and polished the raw diamond weighed in at 132.5 carats.  Mr Bennett, who is the chairman of Sotheby’s jewelry division in Europe and the Middle East added, “I have had the privilege of examining some of the greatest gemstones in the world over the past 35 years, and I can say, without hesitation, that the Pink Star diamond is of immense importance.

While it’s certainly understandable that this diamond is a rare find, what is it that gives diamonds their value?  Anything that’s one of a kind has value because there are enough people who want it and will bid it up.  But anyone who has ever shopped the diamond exchange in New York City, understands that diamonds are as plentiful as grains of sands and other than waterfront property, sand isn’t worth that much.  No other market in the world is as artificial as the diamond market.  Rare diamonds may be rare, but diamonds aren’t.  Even less than geologically beautiful stones are expensive and yet no one has ever questioned it.  Why?

Despite all of the changes in the world, one thing has remained a constant; ever single bride to be, wants a diamond engagement ring.  That market is enough to keep diamonds, nothing more than little pieces of coal, often flawed, from being worth their actual value. There is definitely some workmanship that goes in to shinning a diamond but not enough workmanship that even inexpensive, flawed diamonds cost thousands of dollars.  What’s even more fascinating however is that while they’re expensive to buy, if one attempts to sell one, the value becomes negligible.  Diamonds only have value at retail.  It’s the greatest fix since the Black Sox.  But as long as people are willing to play along, the illusion will remain the reality.