Diamonds, a Girl's Best Friend?

Another misty day brings us present to the sanctity of simplicity.  The silence and emptiness can be like soulful nourishment and healing.  The quiet that is the balance for all that our senses reach out to take in; for all that interpretation and meaning making.

As we peer into the rabbit hole that is the neck of our stowaway and try to penetrate the darkened glass, her secrets are not revealed.  Few choices are left, like the christening of a maiden voyage, our stowaway’s outer shell is to be broken. 

The contemplation of her historical protection and the need to peer inside is exactly what we are doing with money.  We must know what is behind the darkened glass to be able to evaluate her message.

Certain characteristics make up real “money”; an entity that is a medium of exchange and a store of value. 

Durability

The first is that it is “Durable”.  It has to keep its value and not be easily destroyed or decay.  So spices, milk, wheat, most food items etc are not an enduring medium of exchange and do not hold there value and so are not money.  

For the most part, a Dollar bill passes this test; it will eventually wear out but gets replaced. It can burn and be destroyed but for the most part we will say it gets a pass.

Divisibility

The second is “Divisibility”.  Can you divide it up and have each section carry its proportional value? 

This is why diamonds are not really money; you can’t divide up a diamond and have each half equal to the value of the whole. 

Here is a good distinction, diamonds can be a great store of value, but are not a good medium of exchange and so will not work as money.

The Dollar passes this test in that you can exchange a $10 bill for 2 $5 bills for example. 

It is a little contrived but we will give it a pass.

Well the Dollar is 2 for 2, so far I don’t see a problem???