The Economic Value Of Diamonds

There is a high marginal benefit utility of buying your wife a diamond for her wedding. The diamond industry at least as we know it today began 1800 s when an accidental find of diamonds in south africa kicked off a mining exploration and trading boom that led to the existence of one of the most successful and long lasting cartel s in economic history that being the small network of world diamond producers. South africa is the fourth largest diamond producer in the world.

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The economic value of diamonds.

Diamonds today are mined in about 25 different countries but around 49 of diamonds come from south africa. The diamond wedding ring is special because it is a one off. True love is priceless but diamonds don t do any harm to a relationship. However if you bought a second diamond a week after the wedding this would have a significantly lower marginal benefit.

There is a large economic impact of diamond mining in south africa as diamonds provide a lot of money to the economy which provides better living conditions. In 2001 the diamond and jewelry businesses in new york city generated an annual 24 183 billion in economic value source.

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