Can High Pressure Create Diamonds in Nature?

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Ok, I understand the difference between diamond and graphite but how is it that diamond actually forms? Why is that carbon forms one way at one time and a different way at another time? My best guess is that you have to subject the carbon to enormous pressure because it looks like diamonds atoms are closer together and pressure is the only way i can think of to get them together.
 
In nature diamonds are produced in a kimberlite pipes (kind of a volcano). Yes, that means very high pressures. Synthetic diamonds are made using either high pressures or so called Chemical Vapor Deposition method.

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