I have a diamond stone I paid £40 for many years ago, it still cuts like new and has a fine grit (about 600 I think) I use a water stone at 1200 for finishing, I also have some cheap diamond "flats" they are about 2.25 wide and 6 inches long, I got 4 for about a tenner I think. They were supposed to be a descending series of grits, but in fact all are the same, about 120 grit. BUT! They are really good for fast removal of material!
Diamond will cut anything, it is much harder than any metal alloy we are likely to come across, on the scale of hardness used for minerals in geology (MOH's scale which runs as follows, 1. Talc 2. Gypsum 3. Calcite 4. Fluorite. 5 Apatite. 6 Orthoclase 7. Quartz 8. Topaz 9. Corundum 10. Diamond)
Corundum (Rubies and Sapphires) is actually 9 times harder than Talc, but Diamond is about 100X harder than corundum. That should give you some idea of just how hard Diamond is.