Well there's some good information in this thread - and some misconceptions. So let's go through this.
So there is diamond and CBN and boron carbide. Diamond can be divided into monocrystalline and polycrystalline. I'm simplifying this, ignoring natural diamond , various other forms used in embedded products, etc.
Of the three, monocrystalline is the least expensive, polycrystalline the most expensive and CBN inbetween. Boron carbide is less expensive than these. Aluminum oxide, and silicon carbide and emery are much less expensive, available by the pound vs the other abrasives available by the carat (1/5 gram).
Obviously compounds that are more dilute cost less. Compounds that hide their concentrations are - not surprisingly - more dilute.
Compounds that are more precisely graded cost more. If your compounds are not precisely graded for the specified size AND vary a lot as well, they are cheaper and perform poorly. If the compound is pure - it costs more. Those with contaminants cost less. Bars of compounds are particularly poorly specified - you can't even get information about what's in them! So green bars MAY contain Chromium oxide, aluminum oxide or some mix and the two components not necessarily matched for particle size.
Compounds can be dried powders, or in various formulations. Brewing your own mix from powder is a near guarantee of getting particles stuck together (agglomeration) acting like larger particles and giving you stray scratches. Doing this right takes considerable effort. If you want to compare this, think of the powder like steel and the formulated compound like a well tempered knife made from the steel. There is considerable art to producing a well formulated compound.
The formulations can be water or oil soluble. They can be slurries or suspensions. Suspensions can be water or oil soluble. So for instance you can have a suspension that has multiple components, can be a gel type formulation, emulsion formulation, paste formulation etc etc. These formulations can be adjusted to a specific viscosity. So for instance the DMT pastes spread on a strop with difficulty and my emulsion formula spreads easily on leather giving a uniform application with almost no wasted compound on leather or nanocloth or even waterstones. They can be formulated for a specific task - eg knife sharpening, ability to adhere to a powered belt or certain type of bench strop etc. Sometimes they are formulated badly with no concern for any of these and the suspension components separate etc. Suspensions also need to be formulated differently based on the particle size and characteristics. So heavier particles are harder to keep in suspension. Think of designing a dump truck suspension vs a Porsche suspension - very different requirements. Surface tension and electrostatic forces are dependent on particle sizes and this too needs to be considered for a high quality product.
Diamond arecmade for these types of applications through explosions - at much higher pressures than seen in mine explosions under carefully controlled processes. Once made they are graded sized and processed to specification for grit size. As you can imagine, the quality of this grading is more expensive when more precisely done.
Polycrystalline diamond is quite expensive but superior to monocrystalline for some applications. Polycrystaline is made of multiple crystals fused together (that's why it's called poly

). So for a given particle size you have MANY sharp points compared to just a single crystal. This gives you more cutting action, more consistency of cut and a degree of friability that keeps sharp cutting edges exposed. Best for a slurry or emulsion (IMO). Monocrystalline breaks down less, so it is best where the particles are embedded in a lapping plate within a nickel matrix or resin matrix, giving you less fallout but points more easily dulled. Better costs more.
(continued - exceeding single post size limit)
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Ken