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Diamonds are formed deep within the earth's mantle under extreme high pressure and temperature. Most diamonds -- 80% -- are industrial diamonds, the tiny pieces you describe. Gem-quality diamonds are more rare -- the remaining 20% -- and large, gem-quality diamonds are most rare. Pea-size or smaller is the most common size for diamond stones.

As to why -- the answer is in the mysteries of geology and its formation technologies, which are generally unpredictable and always random.

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