Why do we place such high value to things such as gold and diamonds? Wouldn’t it make sense to put that value on things that are more “useful”?
In: Economics
Both are valuable due to scarcity. Diamonds are scarce because DeBeers has complete control over the market. Gold is scarce because it’s really fucking rare. We think she see gold everywhere, but if we’re able to take all the gold ever found on earth and bring it to one place, it would fill an Olympic size swimming pool more or less. That’s it. Over thousands of years of human history and gold mining, all we have to show for it is that relatively small amount. There’s just not much of it, and that scarcity is what makes it valuable.
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