To figure out the exact price or value of something, we need to educate ourselves before buying or selling that same thing. The modern market uses paper and digital currencies to purchase virtually anything that exists on this planet.
Coincidentally, there is other stuff that can be used to determine the overall value of certain things, and those are none other than diamonds and gold. All of this begs the question, “Are diamonds worth more than gold?”. Is it possible to answer that?
Depending on your personal point of view, diamonds can be either more or less worth than gold!
What does that mean? How can our point of view determine which precious metal is more valuable? Isn’t determining the worth of diamonds and gold easy, as long as we know the exact price of a single gram of both metals? How does the economy affect the worth of diamonds and gold?
The topic at hand is rather interesting when all things are brought into consideration. For you to be able to understand which metal is more worth it entirely, you’ll need to continue scrolling, as the concrete answer will present itself!
Diamonds And Gold – What Do They Have In Common?
People used diamonds and gold for different reasons throughout our history, depending on what period we talk about. Coincidentally, both diamonds and gold were first used in BCE; to be precise; diamonds were first used in the 4th century BCE, and gold in the 7th century BCE.
Scientists can’t figure out precisely when people started to use diamonds and gold for the first time, so we tend to use the centuries listed above. In those periods, people didn’t pay close attention to write every single thing down on a piece of paper for us to have as evidence of their behavior.
Luckily, several historical traces and fragments allow us to decipher roughly when and in which way people utilized these precious materials. You see, the people came up with an idea to use both diamonds and gold for trading, buying, and selling various stuff.
It doesn’t matter if they were seeking food or other materials needed for all sorts of craftsmanship; people used diamonds and gold as a means to obtain everything necessary for their survival. Without trading, people from that era wouldn’t be able to survive on their own.
Can we just take a moment to appreciate how intelligent people were from that period! They knew how to effectively utilize the value of these two precious metals to the degree that allowed them to survive the hardship from that era.
Nonetheless, both diamonds and gold have a rich history on their own, significantly older than ours. Oddly enough, scientists estimate that these two materials came into existence around three billion years ago.
It’s believed that both diamonds and gold were created around the same time when our planet was in the Eoarchean Era. To put it into further perspective, both diamonds and gold are older than dinosaurs, and they vanished 66 million years ago. Crazy, isn’t it?
All jokes aside, diamonds and gold were here long before the first human was born, and because of that, we should all appreciate and respect the existence of these precious metals.
We believe that when people first started to use diamonds and gold, they didn’t imagine that these metals would serve future generations. Despite all odds, diamonds and gold remained a staple of wealth and are considered some of the most beautiful metals on this planet.
Whenever we step outside of our houses, there’s a huge chance that we will see someone wearing some kind of jewelry. In most cases, that jewelry will be located either on that person’s ears, fingers, neck, or wrists.
The most common types of jewelry that can be seen on most people are, without a doubt, earrings, rings, necklaces, and wristwatches. These objects are commonly referred to as accessories and are made from various metals.
Regularly, people tend to buy accessories that aren’t that expensive, as they don’t see a particular reason why they should pay for something expensive. On the other hand, there are others that tend to go towards jewelry that is quite expensive.
Among the most popular materials that are used for crafting expensive jewelry are diamonds and gold. Without those two precious metals, most jewelry wouldn’t be as expensive as they are.
Wealthy people usually buy jewelry created with diamonds and gold but don’t particularly think about how expensive these two precious metals are. A common thought is that diamonds are exponentially more valuable than gold but is that true?
Today, we will take a step back and learn why it is important to pay close attention to the jewelry you want to purchase, as you need to know precisely what makes both diamonds and gold so valuable. Expanding your knowledge of precious metals is crucial before buying them. Let’s start!
Read Also: Is Buying A Diamond A Good Investment?
How Can We Measure The Exact Worth Of Diamonds And Gold?
First things first, we need to look at where diamonds and gold are positioned on an official list of the most expensive materials on this planet. Interestingly, among the 20 most expensive materials on the planet, gold is positioned in 17th place.
How is that possible? Shouldn’t gold be ranked higher than that? Oddly enough, there are other materials that are far more expensive than gold, but people don’t pay close attention to them as they aren’t as mainstream as gold is these days.
On the other hand, diamonds sit firmly in 4th place, between tritium and californium. If you want to browse through the entire list of the most expensive materials on this planet, you can simply click on the link here!
Every material on this list has its purpose for humans, but the two most commonly used in the jewelry industry are diamonds and gold. Other materials cannot be used for making jewelry or are simply too unstable and risky to be close to the human skin.
Fun fact; a few people came to talk to us about diamonds and gold and how these two metals affect our overall health if we wear them every day. Fortunately, there is nothing wrong with wearing your favorite jewelry throughout the day, even if it’s made from diamonds and gold!
Let’s cut to the chase; all people are curious to know what is more valuable – diamonds or gold?
For us to give you a definitive answer, we need to touch on a few subjects first:
Diamonds’ Worth Is Determined By The “4 C’s”
When people discuss what makes diamonds so expensive, they usually have a wrong, or rather an incomplete, answer to that specific question. It turns out that most people are unfamiliar with the concept of the “4 C’s” that define the precise value of all diamonds.
The first C stands for carat, and that is the official weight measurement of a single diamond. To keep it simple, a single carat is equal to 0.2 grams. Diamonds are usually cut down to be five-carat, which means that the average diamond will weigh only one gram.
The second C stands for clarity. We believe that this is, in fact, the most important criteria that people should take into consideration when deciding how expensive a diamond should be. The diamond’s price will be as high as the overall clarity of that diamond – as simple as that!
The third C stands for cut, and it refers to the complexity of the last step of the modification of a diamond. All diamonds need to be taken care of before they are offered in the jewelry shops, as when you dig a diamond from the ground, it will have a rough and stone-like appearance.
To make diamonds more appealing to us, professionals are working, to the best of their knowledge, to cut the diamond in a shape that’s acceptable for various accessories. The price of a diamond is determined by the complexity of the cut that the people have to work on for several days at least.
The fourth and last C stands for color, and to understand how valuable a particular diamond is, professionals use a special lens to determine the exact color of the diamond. Preferably, the diamond should be crystal clear, nearly transparent. The yellow color alters the overall price of a diamond.
We did our best to explain to all of you what determines the overall price of a diamond, but if you want a more in-depth analysis of the subject, here is a full guide on how are diamond prices calculated.
The Value Of Gold Is Primarily Measured By Carats
Besides diamonds, the price of gold is also measured by carats, but a bit differently. The same rules apply to gold like the ones that are for diamonds; depending on the number of carats that a specific piece of gold possesses, it will have a price proportional to that number of carats.
One gram of gold is equal to five carats, and the most popular type of gold is the 24-carat type. This is where we come to the tricky part of the topic at hand; it’s inconvenient to use pure 24-carat gold for jewelry, as it’s too soft for daily usage.
Because of that, people that are in the accessory-making industry tend to use other metals to enhance the density and hardness of gold. A usual proportion for “24-carat” gold is to use 18 carats of gold, and the additional 6 carats are other metals, such as copper or silver.
This is the primary measurement that defines gold’s overall cost and value, but it’s not the only one. Unlike other metals, gold is ever so present in the market system, as it’s one of the most stable currencies that exist in modern times.
The Worth Of Diamonds And Gold Differs
Depending on our point of view, both diamonds and gold will have a specific price tag. It’s quite an interesting topic, as there are several factors that need to be considered to determine which precious metal is more valuable.
When it comes to the overall cost of diamonds and gold, the diamond is undeniably more valuable than gold, as it’s significantly more expensive than gold. One gram of gold is around $58, whereas one gram of pure diamond is at least $2000, depending on the “4 C’s” we’ve mentioned before.
On the other hand, believe it or not, gold is rarer than diamonds. When we gather all the necessary statistical information, we can come to the conclusion that there are more diamonds scattered throughout the world than gold.
Taking into consideration the overall rarity, if you try to determine what’s more valuable, it’s evident that gold is more valuable, as there’s less of it.
Last but not least is the overall impact that these two precious metals have on the economy of our planet. It turns out that gold is far more stable and can be easier to trade and manage on the market. Contrary to gold, there are no two of a kind diamonds in this world, which makes trading with them far more complicated.
To Sum Up
In life, there are some things that can’t be explained with only one sentence. It’s just impossible to comprehend the variety of things that define certain stuff, and that is exactly why it’s so hard to answer the question: Are diamonds worth more than gold?
Every metal has its position on the official list that determines the concrete price at which it fluctuates on the market. If you take that into consideration, it’s blatantly evident that diamonds are worth more than gold. But what about other aspects that define these two precious metals?
Gold is, contrary to diamonds, significantly more valuable to the economy, as there are no two of a kind diamonds. Because of that, it’s undeniably easier to manipulate with gold on the market.
Despite all of these things, we still believe that diamonds are, in fact, more valuable than gold, as their price is significantly higher when comparing it to the cost of gold. Diamonds really are a girl’s best friend!