Top 3 reasons why that's the case:
1. They're not that rare; the idea that they are is basically a PR coup:
http://www.theatlantic.com/doc/198202/diamond#at
(that article is from 1982, but a great overview). I don't know about you, but after reading that, I'd just feel like a dumbass paying for an item that's ultimately kinda worthless.
2. While the industry has taken steps to stop this, the diamond industry is implicated in war and political murder. This is a random choice of links, but hey, the History Channel is legit, right?
http://www.history.com/content/blooddiamonds/about-blood-diamonds
3. Workers who mine and otherwise produce diamonds are often highly exploited. For example, there's a lot of child labor related to diamond production. And yeah, workers are exploited to get us food, and we should be trying to stop that, but at least we need to eat.
http://en.wikipedia.org/wiki/Child_labour_in_the_diamond_industry
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i have actually been to these diamond minds in Johannesburg SA. you can actually see them digging up millions of dusty stones... its funny about how america holds such high a prestige of diamonds, and to find out that they are not as rare as we are led to believe! Just amazing!
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