The things we often take for granted, be it our home, food or clothing, were made possible through raw materials found in the Earth’s surface. Both gold and silver are metals that formed in the Earth’s crust long ago. They carry a special value because of their purity, limited supply, and of course, universal recognition.
Diamonds are no different…
Each diamond you view at a jewelry counter at your local mall was mined from somewhere in the world, unless it’s a rare artificial diamond…..or it formed in outer-space.
Although diamonds are found on just about every continent (Antarctica being the exception), not all deposits are created equal. Parts of Asia, namely India, were the first areas to discover and mine diamonds. In modern times, Africa is seen to have the largest deposits of economically-viable diamonds.
Direct mining is by far the most common and economical way of extracting diamonds. However, stones can also be obtained where they’ve been eroded out the ground, deposited and concentrated by wind and water. This method, known as “alluvially,” isn’t as common or economical since surface deposits are spread over a wide area.
Below are some of the more common diamond mining areas in the world:
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Africa is by far the most diamond rich area in the world today. Although diamonds were first discovered and extracted through surface (alluvial) deposits in India, those supplies have more or less been exhausted. Today, Botswana, Angola and South Africa are home to a number of high-output diamond mines. In fact, just under 50 percent of total world production comes from Africa.
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Asia is considered to be where diamonds were first discovered. India specifically has yielded some of the most beautiful, famous and valuable stones. Until the discovery of deposits in Brazil in 1728, India was the only known source of diamonds in the world. Although these original “alluvial” deposits have been exhausted, India still has a few commercial mines in operation. And while there have been unconfirmed reports of diamonds in China and Cambodia, Russia is the only other country in this part of the world with commercially-viable diamond mines.
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Australia, especially in the area of New South Wales, is said to have an extensive supply of diamonds. While they’ve only been discovered in recent times, several mines have been operating on the island continent.
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The Americas – Diamonds were first discovered in Brazil in early 18th century. These extensive deposits compensated for the decline in output from India. Brazilian mines, like their Indian counterparts, produced some of the richest stones available in the world. Diamonds have also been located in Venezuela, Guyana and in the Brazilian State of Roraima. In more recent times, Canada has also produced a considerable share of diamonds. The U.S. doesn’t have vast deposits, but there were two commercial mines, one in Colorado and one in Arkansas. The Arkansas mine today serves as an attraction – for a small fee, visitors can “pan” for diamonds. Many experts believe states like Wyoming, Montana and Alaska may have considerable deposits since their geology is roughly the same as diamond-rich areas in Canada.
It’s always possible that new deposits of diamonds will be discovered. But due to its limited supply and other local issues that cause delays, refined diamonds have a very finite supply. In fact, output from diamond mines throughout the world is roughly flat so unless new (and major) deposits are found, we can expect output to decrease over the long-term.
These are two of the core reasons we invite our valued customers to consider diversifying their holdings and invest in diamond bullion melee.
What are your thoughts?
Are you investing in diamonds before supplies run short?
What are your thoughts on diamonds as a long-term investment strategy?
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