check our website, our see, don't com. i will be back in 30 minutes with the very latest. we'll see you then for ah. oh, why our diamonds. so expensive and considered so valuable. diamonds are not particularly rare and compared to other colored gemstone. they're the most common precious stones to be found. but if that's the case, why is the price of diamonds and other precious gems rising at such an astronomical rate? precious gems have increased in value by 5 to 8 per cent every single year since

1995. i'm christiane, you're watching the cost of everything we're today. we're going to bring some clarity to the often misunderstood diamonds and colored gems. market ah, diamonds have been coveted and admired for thousands of years for their beauty. they were formed billions of years ago and are so rare because so few are able to survive the difficult journey from the pits of the earth to reach the earth's surface. from the diamonds that are being mind to day, only about 20 per cent are high enough quality to be sold on the diamond market as jewelry. but while diamonds are rare, they aren't as where as you think, throughout the 19th century de beers maintained a monopoly on the global diamonds mines. the cartel with stock pol diamond's limit

supply and drive up demand and costs. and it would only release enough diamonds to meet annual demand, giving the market the illusion that diamonds were exceedingly rare. but why is the diamond so expensive? perhaps it has to do with the amount of work at to mine of diamond. diamonds mining operates some of the most resource intensive activities, consuming large amounts of water and energy. you 1st have to mind the diamond and extract it from its or about a 133000000. carrots of rough diamonds are produced each year with botswana and russia. being the largest producers between them, they have half the world's production. and for diamond producers control about 65 percent of the market. to be years, the russian producer are rosa and diversified mining companies, b. h. p, and rio tinto. large, commercially viable diamond mines are a rarity. and today,

there are only about 20 major diamond mines in the world, and only 11 of them make up 62 percent of the world's production by carrot and no matter how big the mine is, you have to move a lot of rock to get a very small number of diamonds and even the riches mine, one ton of rock contains only about 1.4 carrots of rough diamonds. now that's less than point 3 grams. on average a producer cells rough diamonds for a $134.00, a carrot, giving it a profit margin of 20 to 24 percent. the minor then has to sort and sell them as 2 regrade diamonds or industrial grade. diamonds. cutters and polishes are next to buy rough diamonds from the producers, and cut them appropriately and polished them to release their true potential. the majority of cutting and polishing is now done in india, followed by china because of low labor costs. jewelry manufacturers then by the polish stones, usually at exhibitions,

create the peace sets of stones and give them 2 retailers to sell, finished jewelry to customers. manufacturers and retailers, depending on the prestige of the brand can enjoy a premium profit margin of up to 40 percent. but now, man main diamonds are growing in popularity to the average person. these gems are indistinguishable from traditionally mine diamonds. and these live grown diamonds or l g 's are less expensive and considered an environmentally friendly alternative to mining. they take weeks to create and plaza reactors and have been recognized as quote, diamonds by the u. s. federal trade commission since 2018. so for more or less bring in eating goal on diamond industry analyst at diamond research and data. so how have the attitudes towards lab created, diamond or l? as gds shifted in recent years, it seems to be gaining traction with the market expected to double by

$6000000000.00 by 2025. well, actually interesting question. so that has been around for the number of years and have entered the retail marketplace as components in jewelry around 2016 by 2018. there were really already a thing. and at that point, they were, if we looked at the old diamonds, that is natural, diamonds, and lab, grow them together. we're going to time are presented about 2 percent of the business to one point a to, to point to the end. really how you measure. we know that that figure has increases, then it doubled almost every year and it currently stands at

around 10 percent. so in terms of value, there's definitely a doubling almost every year. i don't know if a reach 6000000000, but there is no doubt that this is a, an item of growing interest in the consumer market. and, and we're seeing it growing rapidly at this point. and while l g d 's are trying to position themselves as more at the goal compared with the traditional history of diamond mining, are they really when it takes so much energy to buddhism and most of them are made in china? well, there isn't one answer to this question. in other words, since it's an industry, some companies are ethical in defense of labor conditions impact on the environment, the federal that cannot be fit for all companies. there are

a number of companies out in china that have facing a lot of criticism. some of it has to do with their energy use and interviews that is not clean. there is a lot of criticism about working conditions in some of these places. so in general, i think we really need to, to break this down 1st has to do. ready with is it ethical in the sense that it is environmentally friendly and the other is difficult? is it harming anyone? in most cases we see that both the ethical side and, and environmental side kind of go hand in hand and and compared to, to the majority of natural to look at natural values and mining their

human condition. by enlarge fantastic workers, a unionize in the largest companies, all of the large companies are, are public companies. so they're facing serious scrutiny. if they do not meet standards, they are reporting on their own ethical and environmental impacts. and those are audited so, so, so in that regard, i wouldn't say vance who have grown diamonds are by definition more difficult than, than natural. and the elegy, the industry claims that it's objective is to democratize the diamond industries so that it is more affordable to all. but by doing that, isn't it inherently killing off the diamond industry and taking away the allure of what makes diamonds so valuable and coveted?

so the issue of the valley was an interesting one. so 1st of all, the issue of let's start with the market sizing, diamonds ties and diamonds really. ready with the beers in the 940, they very accurately understood that in the. ready post. ready war 2 era were looking primarily the united states, enjoying the. ready boom, and the growth in the middle class, and that's where a dime is forever. the slogan and marketing campaign really didn't stop until that point. diamonds were really something that you saw primarily available to the very rich royalties to hollywood stars. but the average joe. ready didn't have an opportunity of you or the financial ability to buy them forever. it was a campaign that said look, let's make sure that everybody has an opportunity and a desire to buy

a diamond. so there we go. what we're seeing is really that, that the market, the democratization of diamonds began 80 years ago. so that's $11.00. and the other hand. ready so there's the issue of what is the value today? and there is a debate. so one of the tenants of a luxury item is that it's not available. everybody and, and it is pricey. so it's the economic aspect of it will make it less available as well. as them amount and quantity of the market. and in that regard, if, if we see diamonds being filled for $200.00, you know, everybody can afford them. is it right is wrong with the social, but i think everybody should have access to something. they see that

a is beautiful, and b makes him feel good. i think the biggest value of a diamond ring, for example, is how does it make you feel? does it make you feel when you're gifted? good and, and that, that you made somebody happy. if you're the person being gifted, does it remain a strong and positive memory that make you happy? the answers are yes. if you look at a diamond, you'd say, wow, i'm so happy i have it. if you have a great item and, and that makes it valuable. and at the end of the day, i think that's the most important thing. there's no doubt that the fact that an item will, will have a sort of a bifurcation diamonds in the back industry will have diamonds that are high price and as such luxury items. and we expect to see that primarily happening with

natural diamonds of other hand. we're going to have something that is mass produced easily accessible. the cost of manufacturing is and growing in will reduce over time, making it more and more accessible. and as such, i don't expect it to be a luxury item as much as it will be a fashion item available to everybody. thank you so much, even go on by your insights. and when we come back, we'll discuss the real environmental casa jans. and what is the price countries are willing to pay to get a hold and don't go with

ah, at the end of the 18th century, great britain began to conquer and colonize australia. from the very beginning of the british penetration to the continent, natives were subjected to severe violence and deliberate extra patient. according to modern historians. in the 1st 140 years, there were at least 270 massacres of local depot. any resistance to the british was answered with doubled cruelty. hundreds of natives were killed for the murder of one settler. indigenous australians were not considered complete people. no wild beast of the forest was ever hunted down with such unsparing perseverance as they are. men, women, and children are shot whenever they can be met with squatter. henry myrick wrote in a letter to his family in england, in 1846, australia as fast is rightly described as blood soaked and races. if at the

beginning of colonization, there were one and a half 1000000 indigenous people living on the continent, then by the beginning of the 20th century, their number had decreased del 100000 people. despite the indisputable historical facts, the problem of full recognition of the crimes of white australians against aborigines has not been resolved so far. ah, welcome that it's not does diamonds. that fascinated color gemstones have had a resurgence of interest in recent years. for example, the duchess of cambridge is staff. our engagement rang megan marco's aqua marine ring. and princess eugene coral pup bratia. and more. this has led the sector towards a double digit growth with record prices for emeralds and rubies that surpassed the price of diamonds on a per carrot basis. but all that growth comes with a price which is unfortunately the environment. pounds in world south africa like

diggers, fontaine, were destroyed when the damn bill to hold back. the waste from mining crumbled, sending gray slush throughout the community. the waste from mining known as tailings, is a becoming a major problem. as poor committee are startled with toxic waste, once all the gems are extracted, a similar dam collapsed in brazil years ago, killing more than 250 people. unfortunately, these mines are often in rural areas where operators lack the resources and expertise to manage tailing dams. and often skim in order to save on operational costs. mining also was building tunnels and pits which opens room for soil erosion . loose sediments will continue accumulating in the nearby bodies of waters and the land itself will become unfit for agricultural purposes, further promoting deforestation. so now knowing the true costs of these gems,

is it still worth it? let's bring in eating gall and diamond industry analyst at diamond research and data for more. so even people today are increasingly looking to precious metals and colored gemstones as safe assets. what do you make of that, and how do these precious gems such as sapphires, rubies, and emeralds compared to a diamond as an investment assets. and so in this where there's a, there's a big debate about diamonds are a investment worth the item. and, and here to, we're seeing that we're looking at a not let me restate that. which diamonds were saying that not old diamonds are investment, where the diamonds and there are some that are very much so. so diamonds that have the top top color, top clarity, perfect, polishing,

and sizes that are very rare. so 5 carrots and above. so the flow list, what is called the triple excellent, 5 kerry dime in his rear and the and as they get bigger and remain those other characteristics, they become more and more less. ready available in the market, and as such, what we see is that usually at times of crisis, their prices tend to rise. and, and looking about the time of crisis, we're talking 9 live in 2000 a coven, endemic and those kind of times we see that usually many elements, many economic elements are declining. so the stock market price of gold sometimes usually goes up, but sometimes goes down real estate,

which is an important investment, tends to be real fit into the client at those times when people usually do as they turned to jewelry for a whole list of reasons psychological primarily, and, and emotional and what we see those times is because there's a rise in demand and usually those sort of times difficult to mine, which was clearly the case doing over prices tend to rise. so as such, some diamonds are no doubt a hedge. so in that regard, they are a good investment for the long term, especially not just the time is that a scribe, but those with unique colors, unusual colors are pinks, red blues are, are in great demand, and they're rarity, makes them especially expensive. and so for example, the are,

the minute really of it shut down about 2 years ago was the main source of diamonds. without that, mine is going to be a lot less being time is coming into the market so their prices are appreciating. that's the natural trend in terms of rubies and satisfies we're seeing those kind of trends with semi precious gems as well, although not the same extent. so they are some sapphires in emerald and rubies that are appreciating and value. but this is primarily when they are attached to an interesting piece of jewelry. so necklaces, crowns earrings that have a story behind them. so providence does a lot to to increase their value over time. and those are interesting investments.

if we talk about investments in terms of, you know, if they go out to the store, my local specialty jeweler and buy one carrot ring with, with a typical color clarity combination. their prices do increase over time, but it's not a real investment opportunity. the whole retail model is based on the idea that i buy wholesale. i mark up the goods a little bit and then sell them. then when you want to turn back to the store and say, look, you know, i buy this from you for so many dollars in the ass 23510 years ago. and now i want to see, you know, this return on investment in our retailer won't buy it back at a retail price. so buy back in a whole so price because, you know, that's the basis of the retail business. i buy hold on a so so, so at times people can feel that they did not see the full appreciation. but mainly it has to do with the fact that they bought within

a model that does not encourage to create those kind of transactions. it seems like several of the top tier mines have already been depleted mines in me and more that contain the infamous pigeon blood, rubies or cashmere sapphires, or the gal condo mines for diamonds, have been long depleted. so do you see other semi precious stones like opals or awkward marines joining the ranks of the traditional sapphire rubies and rolls will it's a tricky question. so let's start with. ready you know what, what is available will be available. one of the answers to the question they'll, ability is technology, right, would used to be impossible to reach in the past. all of a sudden became available when technology change. when exploration technology is improved, when conditions have improved, look at

a lot of the diamond minds around the world. today they're underground. and, you know, i've been to a diamond mine in the started as an open pit, which is a typical my and it went more than 600 meters underground. now, this is technology that didn't exist you know many years ago. and today, you know, you mining diamond chemo a kilometer below sea level. so, so it's really a matter of technology. i had a conversation with the ceo of the beers with really clever who say, look, we're ready, thing changes in technology that will allow us to find diamonds of places that in the past we thought that they're not there. or in the past we felt that they are a possible resource but just because of the costs and complexity of mining, it is resources. we never. busy developed and now we're able to develop

them and the fee that the new technology working on all of us get there and, and be able to extract these gems economically. so this and this is true for all gen, this is not true just for diamond just with ruby, for sapphires, emerald, et cetera. so that's the answer. the 1st part of the question, will we see other gems rise and become interesting and vicious? absolutely. as a possibility, i think that there are a lot of beautiful minerals out there that are not being traded as is very expensive or valuable items. and, you know, tastes change interest change. i wouldn't be surprised at all. we'll see that some of these items that are today viewed and sort of pedestrian

become desirable and of interest marketing will have had and that, you know, some interesting brand will come out with design or jewelry line that is based on a certain item that will promoted clearly, so it's definitely a possibility. so we know that the rarity of diamonds is somewhat manipulated by the beers who have monopolies. what about the color gems? markets are the color precious gen innately scares or are there other market forces at play? it's a common misconception that the. ready is, is a monopoly that is gaming prices so. so let's look at the pass back. in the old days, we're not talking, you know, 304050 years ago, the beers had an 80 percent market share. was a combination of our market share fucking by the value of rough diamonds. this

market was created not only by the fact that the bill was the largest diamond minor in the world who was also the largest marketer. in other words. ready would buy diamonds from other companies and market it jointly and made a lot of sense for the exploration other exploration mining companies. we didn't have to deal with the marketing process. we have to clean the dime into the sort the diamonds. they didn't have to maintain a large operation of understanding what's the price of certain stone that of, you know, 3 to 8000 different ways of of breaking you can bring the diamonds up to the sun, vic, down 530023000 categories on some braking to a 1000, so there's a lot of a lot of issues involved and how do you price and market a dime. so it was easy to provide it to the abuse. about 20 years ago, the company became very sensitive to the issue of its

monopoly mystic position and made a couple of changes in the way that it works that changed it. so today the beers is about value 30 percent of the supply. the market is another company all rossa that up until about a year ago when they found distinctions. you sanctions in february 2022 because it's a russian company. so, but at that point, it was the biggest supplier of diamonds by phone, right, by value a little bit less. so, not only that, the beers isn't the biggest diamond minor anymore, it's, it's, you know, some could argue that, that'll get part of me. not only would you say that. so now it could be argued that not only that de beers is not a majority provider,

minimalistic provided to the market. that in fact, it's not even the biggest company in the market because there's another company that sells more by thank you so much eat and go on for your time and insight. now in the debate between diamonds and colored, jans is the consumers who will ultimately decide are these beautiful stones worth? the stress we put on the environment is the cost justified when the lands are stripped and rivers polluted. ultimately, it is up to the consumer to decide if it is worth it to them, or if they're happy with a counterfeit. i would say, synthetic sense, counterfeit has the connotation of deceit, and people are not necessarily being deceived. but the beauty of purchasing a stone that has been growing for millions of years and then plucked out of the ground is so special. and no amount of technology could ever replace or even come close to the fascination of a natural stone. but at what cost to the my, me, i'm christy, i thanks for watching and was here right here next time on the cost of everything

with ah ah ah, the joggers archipelago. homer, the jo, san diego garcia, the largest island in the archipelago is now the location of a very large

u. s. military base. you get government div our i to the us government to make a military base and just deported or douglas and people from their country. so they called return back on the island. no, but we are fighting. that's why i'm flat. we'll fighting for the right. so i, we do not consider that the right to self determination actually applies to the trickle. since i don't the question know, self determination of the legal advice we've received is actually the trickle. since we're not at all, not a people for me, it's time to move on and see what we tend to fall. the tumbler said committee to return back home. they acknowledged to support from the imagination. di commission, african united michigan. don't care about jugglers, said people with

ah, china and a wrong one, we oppose what they call political manipulation under the pretext of safeguarding human rights and democracy. iranian president, wrapped up his 1st official visit to bay americans core to find that government mismanagement of a string, a chemical accident, so close to the country, saying joe biden should focus on the home for us. instead of donating more money. you quite a recovery 101 russian prisoners of war from ukrainian cap service a.