5 ms·

How is gold superior to diamonds really? Both are stores of value, but their value based only on others' willingness to trade for them. No real intrinsic valu

by dpweb 11y ago

How is gold superior to diamonds really? Both are stores of value, but their value based only on others' willingness to trade for them. No real intrinsic value. Granted a fiat dollar is less reliable as there is truly a limited supply of the metals, but that's true of diamonds as well. I would think Gold jewelery is superior to a gold bar - it has decorative utility a gold bar doesn't have - but look at how gold jewelery is valued - at the current gold price and no more.

coin 11y ago
Can a diamond be sold for what one paid for it? Gold has no concept of retail price as it's a commodity.
greydius 11y ago
> No real intrinsic value. Not necessarily true. Gold is an excellent conductor of electricity and resists oxidation. Diamonds are good at cutting stone and concrete.
frostmatthew 11y ago
> How is gold superior to diamonds really? Both are stores of value, but their value based only on others' willingness to trade for them. Because gold is (relatively) easy to sell but "Selling individual diamonds at a profit, even those held over long periods of time, can be surprisingly difficult"[1] [1] http://www.theatlantic.com/past/issues/82feb/8202diamond2.htm http://www.theatlantic.com/past/issues/82feb/8202diamond2.ht...
curun1r 11y ago
> How is gold superior to diamonds really? Copied from an article [1] on why diamonds aren't worth the cost: A diamond is a depreciating asset masquerading as an investment. There is a common misconception that jewelry and precious metals are assets that can store value, appreciate, and hedge against inflation. That’s not wholly untrue. Gold and silver are commodities that can be purchased on financial markets. They can appreciate and hold value in times of inflation. You can even hoard gold under your bed and buy gold coins and bullion (albeit at a ~10% premium to market rates). If you want to hoard gold jewelry however, there is typically a 100-400% retail markup so that’s probably not a wise investment. But with that caveat in mind, the market for gold is fairly liquid and gold is fungible - you can trade one large piece of gold for ten smalls ones like you can a ten dollar bill for a ten one dollar bills. These characteristics make it a feasible potential investment. Diamonds, however, are not an investment. The market for them is neither liquid nor are they fungible. Also, despite thousands of years of attempted alchemy, no one has ever made gold. Carbon, on the other hand, is incredibly common and there are companies that have figured out how to make diamonds that are more flawless than naturally occurring diamonds. They've even figured out how to mimic the impurities after it was suggested that they were somehow not "real." [1] http://priceonomics.com/post/45768546804/diamonds-are-bullshit http://priceonomics.com/post/45768546804/diamonds-are-bullsh...

by dpweb 11y ago

coin 11y ago

Can a diamond be sold for what one paid for it? Gold has no concept of retail price as it's a commodity.

greydius 11y ago

> No real intrinsic value. Not necessarily true. Gold is an excellent conductor of electricity and resists oxidation. Diamonds are good at cutting stone and concrete.

frostmatthew 11y ago

> How is gold superior to diamonds really? Both are stores of value, but their value based only on others' willingness to trade for them. Because gold is (relatively) easy to sell but "Selling individual diamonds at a profit, even those held over long periods of time, can be surprisingly difficult"[1] [1] http://www.theatlantic.com/past/issues/82feb/8202diamond2.htm http://www.theatlantic.com/past/issues/82feb/8202diamond2.ht...

curun1r 11y ago

> How is gold superior to diamonds really? Copied from an article [1] on why diamonds aren't worth the cost: A diamond is a depreciating asset masquerading as an investment. There is a common misconception that jewelry and precious metals are assets that can store value, appreciate, and hedge against inflation. That’s not wholly untrue. Gold and silver are commodities that can be purchased on financial markets. They can appreciate and hold value in times of inflation. You can even hoard gold under your bed and buy gold coins and bullion (albeit at a ~10% premium to market rates). If you want to hoard gold jewelry however, there is typically a 100-400% retail markup so that’s probably not a wise investment. But with that caveat in mind, the market for gold is fairly liquid and gold is fungible - you can trade one large piece of gold for ten smalls ones like you can a ten dollar bill for a ten one dollar bills. These characteristics make it a feasible potential investment. Diamonds, however, are not an investment. The market for them is neither liquid nor are they fungible. Also, despite thousands of years of attempted alchemy, no one has ever made gold. Carbon, on the other hand, is incredibly common and there are companies that have figured out how to make diamonds that are more flawless than naturally occurring diamonds. They've even figured out how to mimic the impurities after it was suggested that they were somehow not "real." [1] http://priceonomics.com/post/45768546804/diamonds-are-bullshit http://priceonomics.com/post/45768546804/diamonds-are-bullsh...