Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Hobbies
  4. / Gemology
  5. / Gemology (General)

by Robert Benford on February 16th, 2006

Robert Benford

Question

Help answer this question below.

How was it determined that certain stones would have a greater value over other stones? For example, diamonds over rubies, etc.

  • Like
  • Report
Share:
Other

Answers. 1 helpful answer below.

  • by Glenn Blaylock on February 23rd, 2006

    Glenn Blaylock

    Value is determined by supply and demand. Supply is determined by the scarcity of the stone. Demand is controlled by the desirability of the stone. People long ago decided that certain stones were more desirable because some of them were more pleasing to look at. Rubies, sapphires, diamonds, and emeralds are among the most valuable because (gem quality stones) are quite pleasing to look upon and they are among the rarest of the gemstones. However, as ideas of fashion change, the values of these stones can change.

    There is one thing that should be noted here. The price of diamonds is artificially high. Diamond production in the world is almost completely controlled by the De Bears cartel. Since they control most of the diamond production, they can and do limit the supply of diamonds. When people have found other deposits of diamonds, if they don't get into bed with De Bears, then De Bears floods the market with enough diamonds to drive the price down until the opposition is forced out of business. I once had hopes that Russia would break their monopoly. (Russia has rich diamond deposits of its own and the Soviet Union accumulated stockpiles big enough to actually challenge De Bears.) Unfortunately, Russia just struck a deal with De Bears and the status quo has been maintained.

    • Like
    • Report

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading How was it determined that certain stones would have a greater value over other stones? For example, diamonds over rubies, etc.

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

Answerbag

a Demand Media company