There's evidence that they aren't terribly rare at all. The creation of the idea that diamonds are rare and valuable is a relatively recent development. Until the late nineteenth century the entire world production amounted to a few pounds a year. In 1870, however, huge diamond mines were discovered in South Africa, and diamonds were soon being scooped out by the ton. The major investors in the diamond mines realized that they had no alternative but to merge their interests into a single entity that would be powerful enough to control production and perpetuate the illusion of scarcity of diamonds.
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