A substance is made up of number of atoms. Both diamond and Graphite are made of carbon atoms. What makes diamond more special than graphite even though both have only carbon atoms?
Chemically, diamonds have only sp3 bonds which are "perfect" tetrahedrons at the moleclular level and therefore can be "perfect" crystals. Graphite has both sp2 bond and pi-pi in the form (C-C=C) which at the molecular level is "perfectly" flat: the second bond in C=C is the pi-pi bond. Except it is often not uniform and not always even perfectly flat. Bucky balls are graphite which have curvature and are shaped like a soccer ball, even though at the molecular level, the surface is composed of localized flat area. The regular flatness of graphite is what makes it an excellent lubricant and what enables it to be rubbed off when one uses a pencil.
Chemists have figured out that under the right combination of temperature, pressure and time, carbon atoms e.g. from graphite can be converted into diamonds. An expensive process. In contrast, removing the remaining hydrogen from coal results in graphite (called charcoal).
I think the question is about the cost of natural diamond and graphite. If so just two reasons might be enough.
Diamond is the hardest known natural material and while it is non electrical conductor it has the highest thermal conductivity among the elements.There are of course many other unique properties for diamond to make it so precious.
1. Graphite is available in plenty (most stable form of carbon at RT and Pressure).
2. Diamond, metastable phase of Carbon at RT and Pressure so it has to be mined (carried to the surface by volcanic eruption), production of raw stone and its finished product are tightly controlled and good quality ones are rare. It can be cut, polished and shaped into gemstones, high refractive index allows it to reflects more light. One among hardest known material, chemically inert and scratch resistant , makes it last longer. Most importantly demand in jewellery business.