You get diamonds from picking up Ore. Or even better advice, get the transmute, it saved me a lot of time when I was doing my quest that called for diamonds. They are very rare reagents.
Go find ore in Krok, then whenever you finish farming a street, or when you get bored, go check the bazzar. they usually have 1 or 2. for outrageous prices, though. 1000g per diamond!!!
In krock at the dig site. That's where i got most of my diamonds. I would go through the realms in the moring and scoop them up. I got about 1 diamond every 10 ores. It also is easier to transmute them.
