Only 132 people can 'afford' to buy that 1,111 carat Botswanan diamond

There’s an old rule of thumb when it comes to buying engagement rings: the person who is proposing should spend one month’s income on it.

You can thank the good people at DeBeers for this Great Depression-era marketing ploy.

But in the last week, a 1,111 carat diamond was unearthed in Botswana, the second biggest ever, and was valued at $US50 million.

So if you apply that pseudo-equation to this new find, then that means that someone would have to make about $US50 million per month to “afford” it for an engagement ring.

And that leaves us with “only” 132 people in the world, according to Deutsche Bank analysts. (Or, the richest 0.0000019% in the world.)

In other words, even the majority of ultra-high-net-worth (UHNW) individuals, who by definition have a net worth of at least $US50 million and make up the richest 0.00168%, shouldn’t put this monster on an engagement ring.

“To reach a wider potential market, therefore, the stone will have to be cut. That is a complicated task because diamonds are priced exponentially. A three-carat rock, for example, can cost ten times more than one-carat sparklers,” suggest the Deutsche Bank analysts.

Notably, that’s sort of what happened to the biggest diamond ever, “the 3,106-carat Cullinan,” which was found near Pretoria in South Africa in 1905: It was cut up and turned into the Great Star of Africa and the Lesser Star of Africa, which are set in the Crown Jewels of Britain.

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