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
You can look into the historical reasons we value these things but more simply, humans aren’t drive entirely by logic and what’s absolutely the most prudent for survival. We have evolved and developed a society that allows many to live superfluously and values certain material items that don’t serve any practical purpose. We’re social creatures that have evolved to value prestige.
It’s also worth mentioning that these things have a value backed by society. In fact, gold was what once gave the US dollar value. These things retain value well over long periods of time so it’s a reasonably good way to store wealth.
That being said, there are tons of important uses for gold, diamond, sapphire, silver, etc. in science and medicine. But generally, the quantities needed here are relatively small compared what’s produced so they don’t have a big impact on the market.
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