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Why do we pay sooo much for nice things, I understand there manual labour and detail that goes into them, but why ?

Like a diamond who in their right mind said a rock is going to make me millions or billions?

A diamond is just a rock ?
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I believe it is the debeers company that holds a near monopoly on them to keep the prices up. Also rarity. And shaping the hardest natural mineral takes a lot of work.
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