Wednesday, July 21, 2021

Supply of Value

No one else's story is going to be your story. Yet along the way, we can benefit from collective intelligence. A form of “there but for the grace of God go I” in both directions (success and failure). You can look at case studies to extract the bits of truth that resonate for you. 

You can also look at what the market is telling you. It doesn’t say what is valuable. Price is not value. It does tell you a lot about supply and demand. To make your choices, first gather information. See what people are paying for different jobs. That is the signal. If people get paid a lot, it is saying that there is an undersupply of people doing those jobs. Not that what they are doing is valuable to everyone. Just that it is valuable to someone with money. There may be a reason why supply is controlled so only certain people can do it. 

Diamonds are far more plentiful than you would think, but the sellers of diamonds have barriers that allow them to control the supply. To release the diamonds at an attractive price. Then they push the price up by convincing people that love means you must put two month’s salary on someone’s finger. A little emotional manipulation to increase demand. 

Ideally, you can find your supply of value internally, and then be flexible enough to dance around the price signals. Never be a forced buyer. Never be a forced seller. The price of Diamonds is not an intrinsic value. It is the story wrapped around it. Be in control of your story.

The story of Diamonds is one of controlling supply and demand


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