Last Updated on January 31, 2023 by hassan abbas
Diamonds naturally evoke dreams of wild riches whenever they’re mentioned. But they go through several stages before reaching the final owner. This is from mining, and manufacturing, then to wholesalers and retailers who then sell them to you as the end consumer.
Many decades ago, only the super-wealthy in the world could own diamonds. However, this has changed; now, even ordinary people can own them. This is because of the discovery of more diamond deposits and improved production. So, how’s the diamond mining business changed?
Here is everything you should know about the diamond mining business.
What are Diamonds?
Diamonds have been around since time immemorial. They are precious minerals composed of carbon and exist naturally deep into the earth. Diamond is the hardest known mineral on earth. It has to get mined and refined to make diamond jewelry like proposal rings and earrings.
There are two major types of diamonds today; natural and lab-created. As we’ll see later in this post, the history of diamonds has been littered with conflict and bloodshed. This made it critical for stakeholders in this industry to come up with lab-created diamonds.
Unlike natural diamonds that must get mined, alternative diamonds are created in labs. The diamonds made in labs are no different from those mined naturally. They have similar chemical and physical properties and are made into high-quality lab-grown diamond engagement rings.
When purchasing diamonds or diamond jewelry, you need to choose between these two. The primary difference between natural and lab-created diamonds is their pricing. Natural diamonds are expensive to mine, and so is their retail price, while lab-grown diamonds are more affordable.
The History of Diamond Mining
You might be wondering how and where mined diamonds got discovered first. Well, diamonds were first discovered in India, but they were in small deposits that got depleted soon after mining started. More diamonds were discovered in Brazil in the early 1700s but were depleted quickly.
This forced miners to get out and discover more diamonds. The search took them to South Africa, where they discovered a huge diamond deposit in 1866. Years later, more diamond explorers visited Africa and discovered even more significant deposits in South and Central Africa.
Diamond exploration and discovery spread to other continents and countries worldwide. More diamonds were discovered in Europe, India, Australia, and the USA. Today, Africa produces about 50% of the world’s diamonds, while the rest come from the mentioned continents.
Many people are shifting focus from natural diamonds. As stated earlier, the mining of diamonds has been marred by conflict, child labor, and bloodshed. This made it critical to have alternative sources. Although diamond mining is still happening, lab-created diamonds are gaining popularity.
What Will the Future of Diamonds Be Like?
There’s no doubt that lab-grown diamonds are becoming popular. However, this doesn’t mean they’ll ultimately replace natural diamonds from the market. A lot is happening in the diamond mining industry, and slowly but surely, mined diamonds are becoming more ethical.
Industry players have been working on improving mining techniques. They’re doing this by developing ethical and sustainable mining practices. The need to change these practices informed the formation of the Responsible Jewelry Council by the United Nations in 2005.
This is the body tasked with ensuring diamond mining is ethical. And it has already made some significant steps, including initiating the Kimberlite Process. This process aims to make diamond mining more environmentally conscious and reduce pollution and degradation.
Diamond mining companies, both large and small, are adopting this process. Consumers also are keen to transact with companies that practice ethical mining. In the end, the natural diamonds being processed today are becoming safe to buy for those who can afford them.
How Diamond Mining is Evolving
There’s a lot that has changed in the diamond mining industry. We have already mentioned the changes in the mining process. Also, we have mentioned that business has rejuvenated, thanks to diamond lovers’ confidence in natural diamonds and mining processes.
Diamond mining companies have also allowed the public to invest in them. Diamond stocks are becoming a compelling investment option for people interested in this industry. You can now buy stocks in a diamond mining company without worrying about conflict, child labor, and bloodshed.
What’s the Startup Cost of a Diamond Mining Business?
This article might have sparked your interest in the diamond mining business. Yes, the diamond industry is attractive, and many people are getting into it. Some start diamond mining companies, while others buy stocks in well-performing mining companies.
Also, other people are investing in diamond jewelry for various reasons. It could be for prestige or even as a store of value. Another way to get involved in this trade is by being a wholesaler or retailer. Retailing diamond jewelry has come out as an attractive business venture.
You might wonder how much it would cost to become a diamond jewelry retailer. Here are some insights:
There’s no fixed startup cost for starting a diamond jewelry business. Various factors will determine how much it will cost you. For instance, you need to know the diamonds you’ll be trading. Natural diamonds require higher starting capital than lab-created diamonds.
Also, you’ll incur expenses for equipment and a brick & mortar store. Add software expenses and the cost of building a professional website. Having an advertising and marketing budget will also be great. The bottom line is that these costs will differ from one business person to another.
The Future of the Diamond Mining Industry is Bright
The evolution of the diamond mining business has had a massive impact on our lives. A gem that was once reserved for rich and royal families is now more available and accessible. If you want a diamond, you can walk into a dealer’s store and get it transferred to you.
This has become possible because of how the diamond mining business has evolved. Modern mining techniques have made it easy to acquire natural diamonds and reduce conflict diamonds in the market. There’re also lab-created diamonds which are an alternative to natural diamonds.