Where to find diamonds in Skyrim?

I imagine they appear in chests and mining once you are high level. I think I just found my first diamond in a chest last night.

Not even sure where I found my one. What are they being used for?

I got diamonds and flawless sapphires from quests in driften and pickpocketing. I pickpocketed a thief for a diamond.

quote:

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The better the jewelry the better the enchantment.

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This isn't correct, just checked the guide:

"Your character level and the item you are enchanting have no effect on the strength of the enchantment. You can infuse the same enchantment on an Iron Helm as a Daedric Helm"