Biggest Diamond in More Than a Century Unearthed in Botswana • Hacker News Board

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#11

Post by danmaz74 » Fri, Nov 20, 2015, 12:59 PM UTC

_Codemonkeyism wrote: post #4

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

I wonder about the intrinsic value of dollar notes.

I wonder about the intrinsic value of intrinsic value.

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#12

Post by iLiveInAfrica » Fri, Nov 20, 2015, 1:00 PM UTC

lcswi wrote: post #2

Yay, this will bring so much wealth to the people of Botswana!

three African governments get together and discuss what they embezzled from different projects

leader 1: see that bridge right there, I got 2 million in my pocket

leader 2: see that road, I got 4 million in my pocket

leader 3: with a smudge on his face, see that building? leader 1 & 2 look at him with amazement and go, "what building" & he goes, EXACTLY!

& for the record I really live in Africa (Ethiopia)

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#13

Post by adrianN » Fri, Nov 20, 2015, 1:03 PM UTC

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

Since the main difference between sand and Intel processors is some expensive processing, processors might have a fair price of, to be generous, 1000 times the cost of sand. So processors cost the ballpark of $10 per kilogram.

Obviously they don't right now, but it gets you thinking about the intrinsic value of processors and how that price might move in the future.

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#14

Post by masklinn » Fri, Nov 20, 2015, 1:04 PM UTC

parasubvert wrote: post #6

_Codemonkeyism wrote: post #4

Earlier quoted context omitted.

I wonder about the intrinsic value of dollar notes.

Same as it is for coal - how long it takes to burn it. Which is a lot quicker. On the other hand, flags, religious symbols, and monuments don't have a ton of intrinsic value either, but humans are funny that way, with their social contrivances.

Industrial diamond use is not limited to burning (in fact burning isn't really an industrial use of diamond as far as I know, there's plenty of cheap ways to heat stuff). Diamonds (mostly synthetic) are used for cutting, piercing (drill bits), abrading[0], anvils in very high-pressure context and electronics heat sinks.

Most of the mined diamond production and the vast, vast majority of synthetic diamonds are not gemstone-grade and are used industrially.

[0] for all three mostly as diamond coating on tools, though there are monocrystalline diamond edges and blades, mostly for surgical use and microtomy: https://en.wikipedia.org/wiki/Diamond_knife

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#15

Post by dagw » Fri, Nov 20, 2015, 1:04 PM UTC

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

So diamonds cost the ballpark of $50 per kilogram.

Close. Current prices for industrial diamonds seem to be more like $100-400 pr. kilogram depending on exactly what you want. Of course those diamonds aren't exactly the type you put into jewelry.

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#16

Post by crdb » Fri, Nov 20, 2015, 1:07 PM UTC

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

It won't because the main value of dug diamonds is rarity, which makes them perfect goods to display your wealth and status. Many of these goods are stored in vaults (some in freeports, areas of an airport carved out for fiscally optimized storage), and the only sign of a change of ownership is an extra name on a registry... but the whole point is to leave your mark on that registry.

So, the demand for these diamonds is not driven by their diamond-ness, just as the James Bond set Astons fetch higher value at auction than the same model sold at retail.

You can already see a version of this by heading to any jewelry shop and comparing lab diamond prices to the stuff sold by Tiffany's etc. Or just asking any young, not yet married lady in the street if she'd be OK with a synthetic.

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#17

Post by masklinn » Fri, Nov 20, 2015, 1:09 PM UTC

dagw wrote: post #15

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

So diamonds cost the ballpark of $50 per kilogram. Close. Current prices for industrial diamonds seem to be more like $100-400 pr. kilogram depending on exactly what you want. Of course those diamonds aren't exactly the type you put into jewelry.

> Current prices for industrial diamonds are more like $100-400 pr. kilogram

IIRC the price was closer to 20 times that for diamond dust, did something change very recently?

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#18

Post by [deleted] » Fri, Nov 20, 2015, 1:11 PM UTC

crdb wrote: post #16

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

It won't because the main value of dug diamonds is rarity, which makes them perfect goods to display your wealth and status. Many of these goods are stored in vaults (some in freeports, areas of an airport carved out for fiscally optimized storage), and the only sign of a change of ownership is an extra name on a registry... but the whole point is to leave your mark on that registry. So, the demand for these diamonds…

[deleted]

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#19

Post by masklinn » Fri, Nov 20, 2015, 1:14 PM UTC

SideburnsOfDoom wrote: post #3

Since the main difference between coal and diamonds is some expensive processing (currently it's usually done by natural processes but that detail can be changed) So diamonds might have a fair price of, to be generous, 1000 * times the cost of coal. So diamonds cost the ballpark of $50 per kilogram. Obviously they don't right now, but it gets you thinking about the intrinsic value of diamond and how that price might…

Intrinsic value is not relevant to gem-grade anything, they're status symbols not industrial commodities.

Re: Biggest Diamond in More Than a Century Unearthed in Botswana

#20

Post by jackgavigan » Fri, Nov 20, 2015, 1:15 PM UTC

jacquesm wrote: post #7

lcswi wrote: post #2

Yay, this will bring so much wealth to the people of Botswana!

Right you are... The people of Botswana don't even rate a mention in the article, they're likely not going to see a single dime of the proceeds which will be in the many tens of millions of US$.

The Botswana Government will get a 10% royalty.