Gold and diamonds, two of the most coveted treasures on Earth, have distinct origins and values that make them unique. Gold, formed in the cosmos, and diamonds, created under the Earth’s crust, have captivated humans for centuries. But which holds greater value?

The Celestial Birth of Gold

Gold is truly a celestial element. Scientists believe that all the gold on Earth was formed in supernova and neutron star collisions that occurred before the solar system was formed¹. These cosmic events, characterized by extreme conditions, led to the formation of heavy elements, including gold.

After the Earth was formed, gold sank to its core. It’s only accessible today because of asteroid bombardment¹. This means that the gold we mine and wear is literally stardust, a relic of cosmic explosions from billions of years ago.

Diamonds: Earth’s Common Treasure

Contrary to gold, diamonds are not cosmic rarities but common treasures of the Earth. Diamonds form deep within the Earth under extreme heat and pressure. They are brought to the surface through violent volcanic eruptions².

Diamonds are made of carbon, one of the most abundant elements on Earth. Despite their common origin, the process of forming diamonds is delicate and often unsuccessful, which contributes to their allure.

Value: Gold vs Diamond

When it comes to value, both gold and diamonds have high market values, but they are valued differently. The value of diamonds is primarily tied to the 4Cs, which represent the quality factors for diamonds: Cut, Clarity, Color, and Carat weight.

  On the other hand, gold is much more valuable because it is rare³, and even when alloyed, the percentage of pure gold will vary a lot, depending on the prevailing market conditions.

Interestingly, diamonds are more expensive than gold, even though they are far less rare than gold. This is because the process of forming and mining diamonds from the very common element, carbon, lends to their allure.