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Have you ever seen a good quality diamond set sterling silver?

I do not mean white gold.

Yes, at Tiffanys. But these are small jewels (0.1ct) as an accent: http://www.tiffany.com/Shopping/Item.asp...

For solitaires, it's almost always gold, or platnium (the cost of the metal is trivial compared to the cost of the stone, so there is little reason to skimp).