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Consider aluminium. At one point it was more expensive than gold (due to mining+refining challenges). When those were overcome the cost plummeted to it's current "cheap" level.

Personally, I think a better comparison is to the diamond trade. Through a series of machinations (price fixing, artificial supply constraint, marketing) diamonds are deeply overvalued if you consider just the fundamentals of them - aka they're in a bubble. However, due to those same expertly administered steps they've maintained a high retail value for decades.



Yes, I had the same thought about aluminum. Another example is, in older parts of the Iliad, iron is considered a precious metal, while in other parts it is not.


But only a one-way retail value. No diamond dealer will give you anything close to their retail price, when you try to sell them diamonds.


Madden games have the same problem.


I always wonder about this when I see films where criminals mastermind a plan to steal diamonds.


Films also have criminal masterminds ask undercover police officers "Are you a cop?", followed by a tense musical score, and a close-up shot of the cop's face...

And a "Ha, ha, just kidding, of course you're not a cop."

Crime dramas and action films tend to have an incredibly poor understanding of money, crime, policing, and Newton's laws of physics.


Significant diamonds still hold their value when resold.

It's kind of like art. Spend $5k on some locals work and you might get $50 at a garage sale later on if you're lucky. Spend $5mil on a big name and you'll likely make it back, maybe profit, when you move it. The high and low end are basically different products that function differently in the market.

It's only shmucks overpaying for mediocre diamonds that lose out.


Kind of makes you wonder if some of those films are marketing for the diamond industry.


Maybe they have a diamond shop somewhere.


I found that sequel to The Asphalt Jungle a bit less interesting than the original.


Fascinating point. Could this hold true for Bitcoin in some way, in the future?




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