This video will teach you how a diamond is manufactured and after you have seen this video you might have a better understanding of why diamonds are so expensive.
The process starts buy blasting big blocks of rocks from the ground and then the residues are transported to the diamond factory where the rough diamonds are extracted from the rock. Then the rough diamonds needs to be examined by a professional foreman that decides how it's best to cut the diamond not to wast more diamond then necessary, then the hard task of cutting and grinding the diamond starts.
All of this work is required to produce a sparkling diamond.