Little known fact.
Gold and diamond have artificial scarcity. The people/coproations who own the majority of the land these things are found on controll how much is allowed into the market in a given year. They also control the price by agreeing not to undercut oneanother.
Before I get "tinfoil hat" accusations, allow me to back t hat up a little bit, Excluding my history as a jewler, and having been told this NUMEROUS times ( which i unfortunately CAN'T back up)
I can offer you a bit of logic to consider.
Diamonds are terribly rare.. yet we use them in tools near constantly.
Gold is highly prized...but again, why?
Amusingly, the percieved value of gold and diamonds is a holdover from human history.
Diamond is expensive today, BECUASE it was terribly difficult to work with before the advent of lasers. You need to remember that at one point in time, all lapidary was done by hand, and imagine how diffult it would be to work with diamond.
The cost is directly related to the work put into it to shape and cut the stone.
Gold, on the other hand was higly prized by metlworkers for the opposite reason. Gold is highly malable, and never oxidizes. It's loved by metalworkers for these two facts, as it is much easier to work with, allowing for a greater degree of detail to be put into it. All that leads to nicer things being able to be made from it.
Nicer piece of art = Higher percieved value.
the important thing there is the word percieved.
" an object is only worth what someone is willing to pay for it, and not a penny more" is a rather simple concept, but also a very true one.
To the other question, Why are they stupid? There is an aold saying that " a fool and his money are soon parted".
Let's take Sean long, a fairly well known youtube toy reviewer as an example. Long is a collector of most anything.. he was even fetaured on collection intervention at one point. What's interesting about sean long, is that at one point in time, he was known for spending OBSCENE amounts of money on ebay to get acess to stolen Hasbro prototype transformers, in order to get reviews out several months ahead of anyone else.
And when I say obscene, I'm talking in excess of 1000$-$2000 .
For a hasbro toy, that would see Mass release a few months down the line, for 9-15$.
I know that some people would say " well, if he can afford it, so what?" But here is the thing, he couldn't. After making said purchases, he would then make tear-filled youtube videos, complainign that due to "unforseen circumstances" he had no money to pay rent, or buy food for the month, and asked for his viewers to donate money to him so he wouldn't starve, or get evicted.
And people would give it. He did this SEVERAL times in fact. So much so that other youtbe reviewers posted videos about careful spending, and that he needed to prioritize better, not wasting 100% of his income on such things as the prototypes.
I suppose that also begs the question of who is more the fool.