What makes diamonds, gold, uranium, Hermes bags, Lamborghini cars, etc, why expensive and desirable? The right answer is scarcity. Rare make beyond affordable to buy these items. Also limited manufacturing create belief of scarcity.

Take a closer look on scarcity, we can see that luxury items deliberately priced high. Limited production rises prices crazy high. Hermes birkin handbag will not be worth $15,000 if it’s mass-produced. Lamborghini Urus car cost a lot (definitely you know),but only a few lucky rich owners could afford to buy it. Diamond jewelry cost too much because , perception of diamond scarcity (that’s not true). Gold price crossed $2,000 per Troy Ounce because it’s safe investment.

If people stop believing that luxury items must be priced high, then these items will lose it’s value immediately.

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By my-financial-wealth.com

Trader, blogger, traveler

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