# How do insurence compays make $$?

**URL:** <https://boards.straightdope.com/t/how-do-insurence-compays-make/20095>\
**Category:** Factual Questions\
**Created:** [May 21, 2000, 5:44am UTC](https://boards.straightdope.com/t/how-do-insurence-compays-make/20095 "2000-05-21T05:44:19Z")\
**Posts on this page:** 1\
**Page:** 2

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**Author:** ![Fillet](https://avatars.discourse-cdn.com/v4/letter/f/2acd7d/32.png) [@Fillet](https://boards.straightdope.com/u/Fillet)\
**Post date:** [May 23, 2000, 12:42am UTC](https://boards.straightdope.com/t/how-do-insurence-compays-make/20095/21 "2000-05-23T00:42:20Z")

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> for example: look at Diamonds. They are far and away the most common natural gemstone, and yet still one of the most expensive. Why? People are expecting to pay more, therefore DeBeers can charge more.

Actually, gem-quality diamonds large enough to make into jewelry are not that common. DeBeers can charge a fortune because they own most of the significant sources of gem-quality diamonds.

Industrial-grade diamonds are indeed quite common, and can be manufactured relatively easily, but they’re pretty small (think sand grain size) and not something you’d want to give your fiancee for her engagement ring. They’re used in heavy-duty cutting and polishing.

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