You Buy High, And We Buy Low.....Cause We Said So~!~ ...?

Question

why does something thats found like gold, diamond etc have a high price, just because of what really? what makes it so pricey, its just rocks, like i understand diamonds, cause it nearly impossible to break, but really doesn't make sense. like why on anything in this case that u buy, cost so much, lets say like a ps3, if u gathered all the plastic, and metal, and glass, etc, it wouldn't even come close to being $700.00 are we paying for the invention, and or idea of that, cause its a mind boggler

Answer 1

Well, it is an age old concept of consumer behavior. Two things that primarily drive this: But remember, all this is valid only after the fact that the stuff you want to buy should have *some kind* of perceived value.

One: people sometimes buy things to make them happy, feel like they can afford something and because they can, they'll buy and it will give a sense of fulfillment. The more money they have at dispoal, their desire to have things start to kick in, even if the things they buy don't necessarily have an inherent value to satisfy a real need that much (example is a diamond - yeah, cool, it doesn't break, forever and stuff but still, why buy it? you can't eat it, it shines, so what, etc.). I can go on and on on this point but you get the basic idea.

two: once there is money to buy something, you want the best - even if it is for the name sake. For example, you do have an idea that a gaming system is fun. But the question is how much do you have to spend? The gamemaker simply decides that people can afford x amount of value for their system and it just works from there. Some people can afford it, and some can't. And yes, the theory on all stuff inside added may not be worth that much but you pay for just the creation (take a better example, would you buy monalisa for $100,000? I probably would, if I $10,000,000).

So, it is about the fact that we have money lying around after buying our food, clothes, a house and a car. So, we don't mind spending it all stuff like this and as long as there is someone buying, someone will make it. And then the commercials, peer pressure, social statuses, our egos and stuff kick in.

BTW, when aluminum was "discovered" first, it was more expensive than gold and diamond (i am not sure about diamond, but I think it was) and was used in jewellery. Until one fine day some dude figured out it can be made much cheaper - now do you see anyone wearning an aluminum ring or chain?