Last night I, and millions of people around the world, looked up at the night sky to see the lunar eclipse. It was a spectacle and an absolute joy to watch.

It was the longest lunar eclipse that we’ll see for the next 100 or so years. And most of us will be dead by then.

But this got me thinking. What degree was looking up at the moon specifically because it was a rare and what degree was because of how beautiful it was?

There are all sorts of interesting sky events that happen regularly. A full moon happens almost every month. The international space station comes past almost daily. And there are many beautiful moonrises and sunsets that happen frequently.

Don’t get me wrong, there is nothing wrong with appreciating something that’s rare. Scarcity itself is a form of value.

The problem is when the only reason something is valuable is because it’s rare and not because it is has inherent value.

Diamonds are a shareholders best friend

Take, for example, diamonds. The average consumer sees diamonds as being phenomenally valuable and highly coveted. A friend of mine got an engagement ring that cost R300 000! (this still makes me feel ill to be honest)

We value diamonds because they’re “rare”. And if anyone says differently I have a couple of points:

• There are much prettier minerals and gems in the world that cost less
• Artificial diamonds have exactly the same chemical structure and sell for less
• Diamonds look like little glass balls
• There is no intrinsic value in a diamond. You cannot eat it or use it to produce goods.

And most importantly, they’re not actually that rare. During the diamond rush in South Africa, a chap (that you might have heard of) called Cecil John Rhodes was able to gain control of most of the supply of diamonds through his company, De Beers.

The company then restricted the supply of diamonds and coupled this with an extensive advertising campaign. This increased the perception of rarity of diamonds which drastically increased prices (and profits). (See more in this great college humour video)

Rare doesn’t mean valuable

There are a number of other brands and companies that do this too. Some famous fashion companies are known to limit supply or destroy unused stock to make sure that the market has less than it requires.

As consumers, and as people, we must make sure that we understand what drives the value of something. It’s alright to appreciate something that is rare. Just know that rare doesn’t necessarily mean valuable.

Images of the moon taken by my mother (and shamelessly stolen off her facebook feed)

Blog: 264/365

Song of the day: Creedance Clearwater Revival – Bad Moon Rising