Eli5 Why does gold have high return value and not diamond? Even though culturally we value diamond more

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Eli5 Why does gold have high return value and not diamond? Even though culturally we value diamond more

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Answer 1

Diamonds aren’t rare, but because of the diamond cartel that regulates the output, they keep the price artificially raised. There is no secondary market for diamonds, though. A used diamond is basically trash.

Gold is legitimately rare, is useful for electrical conductivity, and can be melted and reformed over and over. It doesn’t corrode, so it’s useful for plating other metals.