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Other gemstones have many applications (sapphires, rubies, emeralds, amethysts). Could someone please summarize in this thread what can diamonds be used for, and if it is possible to enchant them as the other gemstones?

Being them the most valuables amongst gems, I would expect them to be more powerful than the others in terms of usage and value, but they aren't at least on the latter.

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You can't to enchant them. If you have the highest rank of the Nightmare Knights or Brotherhood of Bones, you can use one small diamond to make a Document of the Follower, Document of the Officer or Document of the Leader which are needed to get both the Nightmare outfit and the Brotherhood of Bones outfit.

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