The Argument
Premise 1: Colorless diamonds command high prices as gemstones.
Premise 2: Some less-valuable diamonds (of a colored type) can be treated to remove all color, and only sophisticated tests can tell them apart from naturally colorless ones.
Premise 3: However, only 2 percent of diamonds mined are of the colored type that can be successfully treated—and many of those are of insufficient quality to make treatment worthwhile.
Conclusion: Therefore, the vast majority of colorless diamonds sold by jewelers are naturally colorless.
What the Argument Assumes
The argument concludes that most colorless diamonds sold are naturally colorless because the supply of diamonds that can be treated is very small (only 2% of mined diamonds, with many being unsuitable for treatment). To make this leap, the argument assumes that the small percentage of treatable diamonds (even if treated) contributes negligibly to the supply of colorless, gemstone-quality diamonds.
Identifying the Flaw
The flaw in the reasoning is that the argument fails to consider how the rarity of naturally colorless, gemstone-quality diamonds compares with the rarity of those diamonds that can be successfully treated. In other words, even if only 2 percent of all diamonds are treatable, the argument does not provide any information about the relative frequency or availability of naturally colorless, high-quality diamonds versus those produced by treatment.
Without combining the information about the rarity of treatable colored diamonds with information about the rarity (or abundance) of naturally colorless, gemstone-quality diamonds, one cannot validly conclude that most colorless diamonds sold are natural rather than treated.
Matching with the Answer Choices
(A) Discusses comparisons of price for different uses, which is not the point of the argument.
(C) Concerns the possibility of using colored diamonds as gemstones without treatment. This is not at issue in the argument.
(D) Talks about the method for making colorless diamonds, but the argument isn’t about method exclusivity.
(E) Mentions customer difficulty in distinguishing diamonds, but that fact is already stated and is not central to the flaw.
(B) states: "information about the rarity of treated diamonds is not combined with information about the rarity of naturally colorless, gemstone diamonds." This is exactly the oversight in the argument. The argument uses the 2% figure for treatable diamonds without comparing it to the actual frequency of naturally colorless, gemstone-quality diamonds that are sold.