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"The most precious gem one can find in Hyrule, its signature sparkle has charmed Hyruleans for generations. As such, it has sold for a very high price since ancient times."

— In-Game Description

Diamond is a material found in Breath of the Wild. It can be obtained from miscellaneous Chests in the game, from mining Rare Ore Deposits, and it is also a rare drop from the overworld boss, Stone Talus (Rare). It is required if Link wants to purchase the Diamond Circlet from Fashion Passion in Gerudo Town, since 3 are necessary in the manufacture. Alternatively, they can be sold to shop-vendors such as Beedle for 500 Rupees each.

Ledo in Zora's Domain will exchange 10 Luminous Stones for 1 Diamond. He can be found near the entrance of the domain, doing some handiwork on a pillar.