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Are diamonds worth more than gold? 

Are diamonds worth more than gold?

When it comes to precious materials, diamonds and gold are some of the most popular. Both are symbols of wealth and status, and both make beautiful jewellery. But when it comes to value, we can often be confused by which is ‘worth’ more than the other. The answer is not straightforward and depends on several factors, including market demand, rarity, the intrinsic qualities of each, and sentimentality. So, let’s get into it. 

Understanding how diamonds are valued 

Natural mined diamonds, formed over billions of years deep within the Earth’s crust, are admired for their brilliance, hardness, and rarity. The monetary value of a diamond is determined by the 4Cs: Cut, Colour, Clarity, and Carat weight. A high-quality diamond with excellent cut, colour, clarity, and significant carat weight can reach high prices. Additionally, the rarity of certain diamonds, such as those with unique colours (pink, blue, or green), significantly increases their value. 

But the value is not just about the diamond itself. The value of diamonds is also subject to market demand. Trends in fashion, investment demand, and economic conditions can influence diamond prices. The value of diamonds can vary widely based on their quality and the market’s current conditions. 

Understanding how gold is valued 

Gold, on the other hand, is a precious metal that has been valued by civilizations throughout history for its beauty, malleability, and resistance to tarnish. Gold’s value is relatively stable and is often seen as a ‘safe’ investment, especially in times of economic uncertainty. The price of gold is primarily influenced by its weight and purity, measured in karats, with 24-karat gold being the purest form. 

Unlike diamonds, the market for gold is more straightforward. While its value can change due to different conditions, it’s easier to understand, as the gold price is set daily in the global markets. Gold’s value is not just in its physical form (jewellery, coins, bars) but also as a traded commodity in financial markets, affecting its price globally. 

Comparing the value of diamonds and gold 


Diamonds are often perceived as rarer than gold, but this isn’t entirely accurate. High-quality diamonds that meet the highest standards of the 4Cs are rare, but smaller, lower-quality mined diamonds are much easier to come across. Gold, while more abundant compared to high-quality diamonds, is finite, and its extraction is limited by mining capabilities and costs. 

Market demand 

The demand for both diamonds and gold fluctuates. Diamonds are highly sought after in the jewellery market, especially for engagement rings, which can drive up their prices. Gold, however, has a broader base of demand, not only in jewellery but also in electronics, dentistry, and most significantly, as an investment. More industries use gold than diamonds, and it therefore has a more stable price. 

Intrinsic value 

Diamonds and gold carry different types of intrinsic value. Diamonds are valued for their aesthetic qualities and the craftsmanship involved in cutting and setting them into jewellery. Gold’s value is intrinsic to the metal itself, based on its weight and purity, and is less subject to subjective qualities like aesthetics. Therefore the ‘value’ of both materials is down to different factors and cannot be directly compared. 


This aspect of what material is ‘worth’ more than another is often down to sentimentality. You may have an expensive gold jewellery piece, but you value your diamond engagement ring higher, due to its sentimental value. Jewellery has so much inherent sentimental value, only you can decide which piece you ‘value’ the most. 

So which is worth more? 

So, are diamonds worth more than gold? It depends. In some cases, a high-quality diamond may be worth more than an equivalent weight of gold due to its rarity and the demand in the jewellery market. However, gold’s value as a consistent and widely recognised investment can make it more valuable in terms of stability and liquidity. Essentially, there is no solid answer, and the best way you can determine which of your piece is ‘worth’ more is to get it valued by a reputable jeweller. If you have any questions about the worth of your The Diamond Store jewellery, please refer to your valuation, or get in touch with our friendly team, who will be happy to help.