Why are diamonds more expensive than water?

mrsticky005 · 04-30-2011, 02:46 AM

Sure diamonds are scarce. But nobody actually needs diamonds. Everyone needs water so the demand of water beats the limited supply of diamonds.
So why are diamonds more expensive than water?

Debate.

Rasengan- · 04-30-2011, 03:58 AM

lol the water-diamond paradox. This illustrates a good example of the distinction between value in use and value in exchange. Obviously water has more value in use than have diamonds. It is an essential item, necessary for life itself. Diamonds are a luxury item with much more limited uses. Its exchange value is worth more.

The obvious explanation for this divergence between usefulness and market price is the differences in supply conditions between the two goods. Water is plentiful and needs little labor to make it available for consumption, while diamonds are scarce as you mention it also take a great deal of effort to make (prospecting, mining, cutting and polishing) and avaiable for the market for sale. The difference in the 'supply' in other words the 'cost' process instill in production and its availability determines the consumption or exchange value in the market place.

The cost of production and the supply conditions shape the exchange values in the market. However, what determines value is different in various schools of thought.

PlatonicZombie · 04-30-2011, 08:53 AM

Diamonds are a status symbol. If water were to be as expensive, or more so, than diamonds, I would think society would collapse. The majority needs to be able to afford the basic life essentials if society is to survive. So, as you pointed out, though water is much more important it remains cheaper. Still, diamonds have still found a way to be important. It's not just a status symbol, but it's a neccesity for marriage. Unless you're lucky enough to find a significant other who has been educated enough to see the farce in these things. So diamonds have found an importence in society. It's the "ultimate expression of love".

Kreegah!!! · 04-30-2011, 01:55 PM

What gemstone's the ultimate expression of hate? I want that one.

Bacon · 04-30-2011, 02:04 PM

Diamonds will be expensive as long as people are willing to pay for them.

Konoha'sGreenThunder · 04-30-2011, 02:06 PM

Because who doesn't love carbon, am I right?

deidara330 · 04-30-2011, 02:13 PM

Because water is insanely common. Diamonds aren't. Water could never be as expensive as diamonds because people would never pay any amount even close to what they pay for diamonds when it's so available to people. There isn't a demand for water, for that reason.

Sheelah · 04-30-2011, 02:15 PM

In theory, diamonds are more expensive as they are a limited resource. Also, the manpower that is needed to procure them. Water is much more plentiful, it just depends on how clean that water is, in the area that you are in.

Bacon · 04-30-2011, 03:58 PM

Quote:

Originally Posted by deidara330

Because water is insanely common. Diamonds aren't. Water could never be as expensive as diamonds because people would never pay any amount even close to what they pay for diamonds when it's so available to people. There isn't a demand for water, for that reason.

Quote:

Originally Posted by Sheelah

In theory, diamonds are more expensive as they are a limited resource. Also, the manpower that is needed to procure them. Water is much more plentiful, it just depends on how clean that water is, in the area that you are in.

Perhaps this notion of abundant water is merely a luxury. Without the modern industrialization that people in the northern hemisphere enjoy; water would be scarcer than a platter of gourmet chocolates at a weight watchers convention. Yes, there are trillions of gallons of water in the oceans,but none of it drinkable without some process to purify it.

IN a sense, water is abundant. IN another, clean water that people can drink is scarce.Lucky we Americans and Europeans don't have rainfall patterns like Africa. :]

Cloukora · 04-30-2011, 06:11 PM

Quote:

Originally Posted by deidara330

Because water is insanely common. Diamonds aren't. Water could never be as expensive as diamonds because people would never pay any amount even close to what they pay for diamonds when it's so available to people. There isn't a demand for water, for that reason.

this
it's simple economics
the more you have in supply, the less you charge
the less you have in supply, the more you charge
it doesn't always have to be something that's needed

chidoriroar · 05-01-2011, 04:19 AM

because if water was so expensive most human beings would die of thirst and there would be chaos and killing. also water is to common and diamonds arent needed so it doesnt matter if only the rich can have them

04-30-2011, 02:46 AM	#1
mrsticky005 Join Date: Apr 2009 Location: In the White Text House Posts: 13,912 Rep Power: 23 Member's Picture Albums	Why are diamonds more expensive than water? Sure diamonds are scarce. But nobody actually needs diamonds. Everyone needs water so the demand of water beats the limited supply of diamonds. So why are diamonds more expensive than water? Debate. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Spam once and the forum will be annoyed. Spam twice and warnings will be deployed Spam thrice and a infraction you will receive Spam 8,984 times and a FAIL Agent you''ll soon be. ...At least in my case. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

04-30-2011, 03:58 AM	#2
Rasengan- Chunin Exam Participant Join Date: Apr 2010 Posts: 736 Rep Power: 7	Re: Why are diamonds more expensive than water? lol the water-diamond paradox. This illustrates a good example of the distinction between value in use and value in exchange. Obviously water has more value in use than have diamonds. It is an essential item, necessary for life itself. Diamonds are a luxury item with much more limited uses. Its exchange value is worth more. The obvious explanation for this divergence between usefulness and market price is the differences in supply conditions between the two goods. Water is plentiful and needs little labor to make it available for consumption, while diamonds are scarce as you mention it also take a great deal of effort to make (prospecting, mining, cutting and polishing) and avaiable for the market for sale. The difference in the 'supply' in other words the 'cost' process instill in production and its availability determines the consumption or exchange value in the market place. The cost of production and the supply conditions shape the exchange values in the market. However, what determines value is different in various schools of thought.

04-30-2011, 08:53 AM	#3
PlatonicZombie Chunin Exam Participant Join Date: Jan 2010 Location: The dark awkward spaces of the social mind. Posts: 661 Rep Power: 8 Member's Picture Albums	Re: Why are diamonds more expensive than water? Diamonds are a status symbol. If water were to be as expensive, or more so, than diamonds, I would think society would collapse. The majority needs to be able to afford the basic life essentials if society is to survive. So, as you pointed out, though water is much more important it remains cheaper. Still, diamonds have still found a way to be important. It's not just a status symbol, but it's a neccesity for marriage. Unless you're lucky enough to find a significant other who has been educated enough to see the farce in these things. So diamonds have found an importence in society. It's the "ultimate expression of love". __________________ PlatonicZombie - Supporting Drunk Posting Since 1983.

04-30-2011, 01:55 PM	#4
Kreegah!!! Special Jonin Candidate Join Date: Jun 2009 Posts: 5,881 Rep Power: 16	Re: Why are diamonds more expensive than water? What gemstone's the ultimate expression of hate? I want that one.

04-30-2011, 02:04 PM	#5
Bacon Special Jonin Candidate Join Date: Sep 2009 Location: Walkin' through the candy-lane with Tifa.~ -.- Posts: 29,678 Rep Power: 27 Member's Picture Albums	Re: Why are diamonds more expensive than water? Diamonds will be expensive as long as people are willing to pay for them. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

04-30-2011, 02:06 PM	#6
Konoha'sGreenThunder Wallflower Join Date: May 2009 Location: At Pigfarts with Rumbleroar Posts: 7,145 Rep Power: 12 Member's Picture Albums	Re: Why are diamonds more expensive than water? Because who doesn't love carbon, am I right? __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

04-30-2011, 02:13 PM	#7
deidara330 Mr. Serious Join Date: Apr 2009 Location: Everywhere and Nowhere. Posts: 14,489 Rep Power: 14	Re: Why are diamonds more expensive than water? Because water is insanely common. Diamonds aren't. Water could never be as expensive as diamonds because people would never pay any amount even close to what they pay for diamonds when it's so available to people. There isn't a demand for water, for that reason.

04-30-2011, 02:15 PM	#8
Sheelah S-Class Ninja Join Date: Nov 2010 Posts: 23,683 Rep Power: 13	Re: Why are diamonds more expensive than water? In theory, diamonds are more expensive as they are a limited resource. Also, the manpower that is needed to procure them. Water is much more plentiful, it just depends on how clean that water is, in the area that you are in. __________________ Rest in Peace...My Beloved Cat..I will always miss you. 7/9/2012 Second Place in the 2011 Greatest Naruto Character Ever Contest To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Spoiler: To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

05-01-2011, 04:19 AM	#11
chidoriroar Chunin Join Date: Apr 2009 Location: a place where im accepted for who i am Posts: 957 Rep Power: 9	Re: Why are diamonds more expensive than water? because if water was so expensive most human beings would die of thirst and there would be chaos and killing. also water is to common and diamonds arent needed so it doesnt matter if only the rich can have them __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. the bitterness of this life is the sweetness of the next. Give me rep and ill give you rep back. dont talk about measking for rep since im not the only one doing it and theres nothing in the rules against it. to the people who dont know, you have to include your name when giving rep and if your rep is less than one giving rep wont matter.

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