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Diamond is considered an elemental mineral.Diamond is made of pure carbon, with carbon atoms arranged in a cubic structure and bonded to their neighbors in a very compact way. So, diamond is made of an element but it is not an element. It is not a compound either, because, by definition, a compound is made up of two or more elements.

I would say diamond is crystalline form of carbon, that is, it is composed merely of carbon atoms in a highly structured arrangement. It is carbon, like charcoal, but its more expensive due to its good properties that include natural hardness and beauty. Note that only about 20% of all diamonds mined are gem-quality stones.

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