Diamonds are Bullshit (2013)
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Diamonds are Bullshit (2013)
1–10 of 82 posts
Re: Diamonds are Bullshit (2013)
#2Still waiting to see a 'gold' is BS post. Diamonds and gold both have plenty of industrial usages, but when it comes to status items there both pointless wastes. However, being pointless is why there status items in the first place.
In the end many people like birds like bright shiny objects. This just in, fads like beany baby's, bitcoins, and baseball cards are also a thing. http://www.paulgraham.com/say.html
PS: Land is still cheap: "The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $2,900 per acre for 2013"
Re: Diamonds are Bullshit (2013)
#3The punchline is the second to last paragraph:
> Today, De Beers hold on the industry supply chain is less strong. And yet, price continue to rise as new deposits haven’t been found recently and demand for diamonds is increasing in India and China. For now, it’s less necessary that the company monopolize the supply chain because its lie that a diamond is a proxy for a man’s worth in life has infected the rest of the world.
So the monopoly is gone, prices are rising because of fixed supply in the face of increasing demand, but diamonds are still bullshit because their value is based on a consumer irrationality.
I hate to break it to the guy, but half of the consumer economy is built on irrationality (and half of silicon valley is built on advertising that irrationality to consumers). Pretty much every luxury good is purchased for signaling reasons. Paying more for a diamond with a particular clarity grade or color isn't any less irrational than paying more for a top-end BMW, even though you'll never take it over 60 because of all the traffic.
Re: Diamonds are Bullshit (2013)
#4Still waiting to see a 'gold' is BS post. Diamonds and gold both have plenty of industrial usages, but when it comes to status items there both pointless wastes. However, being pointless is why there status items in the first place. In the end many people like birds like bright shiny objects. This just in, fads like beany baby's, bitcoins, and baseball cards are also a thing. http://www.paulgraham.com/say.html PS: La…
Well gold and land both have a resale value that is pretty much exactly what you paid for it, assuming other things are equal. The point of the article is that diamonds (as used in jewellery) really don't, and therefore are not suited to investment (or currency, or some other store of value) as gold and land might be.
If you buy gold or land in a fair auction, you can flip it in a day or two for roughly the same price minus fees. You can't do that with a diamond ring.
Re: Diamonds are Bullshit (2013)
#5The real trick isn't that they get people to buy expensive rocks. The real trick is that they convinced so many of us to rebury them. Cemeteries are most certainly the richest untapped diamond fields in existence.
Re: Diamonds are Bullshit (2013)
#6Still waiting to see a 'gold' is BS post. Diamonds and gold both have plenty of industrial usages, but when it comes to status items there both pointless wastes. However, being pointless is why there status items in the first place. In the end many people like birds like bright shiny objects. This just in, fads like beany baby's, bitcoins, and baseball cards are also a thing. http://www.paulgraham.com/say.html PS: La…
Well gold and land both have a resale value that is pretty much exactly what you paid for it, assuming other things are equal. The point of the article is that diamonds (as used in jewellery) really don't, and therefore are not suited to investment (or currency, or some other store of value) as gold and land might be. If you buy gold or land in a fair auction, you can flip it in a day or two for roughly the same pric…
Gold jewelry generally resells for ~1/2 of its initial purchase price +/- whatever the gold market did. Land also has a high transfer cost (Real Estate Agent etc) and it's often paid for with a loan which also inflates the purchase price, not to mention taxes, none of which is reflected in the sale price.
Generally, if you’re moving in less than 5 years it's better to rent.
Re: Diamonds are Bullshit (2013)
#7He proposes that diamonds are an essential part in the mating ritual and then goes on to say they are not an investment? As silly as it is if the dumb ring helps you convince your future wife she should be your future wife I'm going to go ahead and say that it is actually a wise investment.
I don't see peacocks wandering around saying "feathers are bullshit"
Subjective theory of value...etc.
Re: Diamonds are Bullshit (2013)
#8The punchline is the second to last paragraph: > Today, De Beers hold on the industry supply chain is less strong. And yet, price continue to rise as new deposits haven’t been found recently and demand for diamonds is increasing in India and China. For now, it’s less necessary that the company monopolize the supply chain because its lie that a diamond is a proxy for a man’s worth in life has infected the rest of the…
There are very real and noticeable differences between a $30k and $90k BMW other than top speed.
There are NOT noticeable differences between a $30k diamond and a $3k moissanite stone. A better analogy would be $100 "professional HDMI cable" and a $10 standard HDMI cable.
Re: Diamonds are Bullshit (2013)
#9[deleted]
Re: Diamonds are Bullshit (2013)
#10Still waiting to see a 'gold' is BS post. Diamonds and gold both have plenty of industrial usages, but when it comes to status items there both pointless wastes. However, being pointless is why there status items in the first place. In the end many people like birds like bright shiny objects. This just in, fads like beany baby's, bitcoins, and baseball cards are also a thing. http://www.paulgraham.com/say.html PS: La…
Land has a lot more maintenance associated with it than the other items and if you aren't going to use it, it's still just a store of value similar to gold and diamonds. You're betting that the land won't decrease in value, which isn't always a safe bet, and that the recurring costs don't eat into your return.