Gems as currency in Equestria

[Henny Penny Benny 936]

It's easy to see that bits are a common currency in Equestria, but we've also seen several instances of gems being used as currency in and of themselves.

 

In real life, while gems are certainly quite valuable, they can't just be tossed around as currency. Instead, they have to be carefully appraised and sold for currency which, of course, can then be used as... well, currency. But in the show, ponies have actually bought things only using gems. In Rarity Takes Manehattan, the bellhop even offers to get Rarity change for the gem she gave him as a tip. All that leads me to believe that ponies must either have an innate sense for how much gems are worth or be taught the values of all manner of gems as they're growing up.

 

Thoughts?

[ReGen 1,466]

Maybe gems and bits are the equivalents to dollars and cents, respectively. I suppose that certain gems are worth a certain amount, similar to rupees in The Legend of Zelda.

[boiteporte 591]

Well, first, talking about gems makes me depressed (yeah, the Gameloft game, )

 

Anyway, I believe that they know just how valuable a gem is. And, even though it is not the official currency ( they cannot use it to buy merchandise), the gems can still be exchanged for bits.

 

The example you're giving is not an "official" thing. Rarity gave a gem because she is nice, but it is different from walking into a shop and buying something.

 

Taking a real life example, I could grab the first guy who walks by me on the street and shove a gem into his pocket, he would likely take it. However, I would be unable to buy a book with gems and that is the same as in the show.

 

The only pony who would likely take gems as an "official" payment is Spike. But, of course, he is not a pony.

 

EDIT : Did that guy actually mention giving change back ? If he did, that destroys the whole of my argument.

Edited August 6, 2014 by boiteporte

[Snow Frostflame 3,571]

your correct Bits are their currency as for gems they have a lot of value to them and are worth some serious bits depending what gem and how big it is if memory is correct Diamonds are the most valuable and Amethyst is the least valuable 

[Henny Penny Benny 936]

EDIT : Did that guy actually mention giving change back ? If he did, that destroys the whole of my argument.

Eeyup.

 

Bellhop: Welcome to the Mane Fair Hotel! Please allow me to take those bags to your room for you!

Rarity: Only if you'll accept this gratuity first.

Bellhop: Oh-ho-ho! I'll get your change!

Rarity: Do keep it all. I insist!

 

There's also the bit in Just for Sidekicks where the CMC use the gem Spike gives them to buy and industrial blow-dryer. Although it doesn't explicitly say they actually purchased it with the gem. They could just as well have sold the gem and then used the bits to buy the dryer.

[boiteporte 591]

Well, in that case, it is possible that gems can be used as currency.

 

Well, we can relate that to real life. I mean, several countries used the gold standard before.

 

Although this is totally obsolete now.

 

But still, using gems as currency is totally unrealistic since gems come in all sizes and they have different values as well. So, I just don't know how they can do it.

Edited August 6, 2014 by boiteporte

[Buck Testa 5,505]

Gems seem a hell of a lot more common in Equestria then in our world and also less valuable. People would kill eachother over the stuff Spike snacks on.

[1111 1,284]

why is there not a blood diamond.mov?  

[Fractured 2,684]

Gems seem to be lesser currency than bits. Rarity seems to use them as a tip willy-nilly, and even the CMC can pay Spike with them. On contrast, bits are used to pay for all important things, like various drinks and the alicorn amulet. It seems gems can be used as money, but they are so common in Equestria they more valuable as clothing accessories

[Henny Penny Benny 936]

Gems seem to be lesser currency than bits. Rarity seems to use them as a tip willy-nilly, and even the CMC can pay Spike with them. On contrast, bits are used to pay for all important things, like various drinks and the alicorn amulet. It seems gems can be used as money, but they are so common in Equestria they more valuable as clothing accessories

Huh, I'd never thought of that! But that could well make sense, that gems are actually less valuable than bits.

[1111 1,284]

so like gold and money in the usa?

[Brony Number 42 10,098]

But in the real world gold is worth much more than Federal Reserve Notes.

[Fractured 2,684]

so like gold and money in the usa?

More or less. There are so many gems in the ground that they overall demand for them is really low. Gold, or whatever bits are, seem to be a lot less common or a lot more regulated, so they're the standard currency. Of course, there doesn't really seem to be any gauge on how much anything is worth in Equestria, since shop owners can change prices on a whim

[I used to be a stranger 7,994]

I'm just glad glass and silica fakes aren't passed around.

Currency: another realm where Equestria is peacefully and sweetly innocent of the corruption of mankind and his commonalities.

[Brony Number 42 10,098]

Grrr sorry for the double post.

Edited August 7, 2014 by BronyNumber42

[Legacy Dash 439]

I think gems are just a informal currency, or a gift.

 

Rarity probably offered the gem to the bellhop as an informal gift to say thanks.

Spike probably has no need for bits, so people pay him gems that he can eat.

[Brony Number 42 10,098]

 

The Central Bank of Equestria issued bits as fiat currency. This increased the demand for tangible assests. The neighboring diamond dog kingdom became rich by selling diamonds on the international market. Equestria's trade gap grew along with their debt. The griffons threatened war. Many ponies believed the Equestrian Reserve Act was unconstitutional. Celestia issued bits out side the central banking cartel. She was assassinated during a parade. The government's official story was a magic bullet, which is totally plausible since magic exists.

[Wander 125]

If gems were currency Spike would be a banker.

[Jeric 46,890]

I think gems are just a informal currency, or a gift.

 

Rarity probably offered the gem to the bellhop as an informal gift to say thanks.

Spike probably has no need for bits, so people pay him gems that he can eat.

Zecora also donated them as well. I'm fairly sure they have value, but gemology is complicated. How do we simplify the cutting, polishing, clarity, type, and weight so gems can have an easily recognized value ... or is that even needed.

 

Hmmm

[Solid 1,327]

Ponies do business with bits.

 

Gems are used by Hasbro and Gameloft to make us spend money :3

[The Shadow Stallion 127]

Gems are like spare change while bits are like dollars. Thats my logic lol. So Rarity was actually tipping the bellhop anywhere from 1 penny to a dollar coin in our currency system XD.

 

Or.......

 

Ponies have an innate sense of how much each gem is worth. We're talking about cartoon ponies that can fly and use magic. Its not that odd to think that they could even have some sort of natural gem instincts. Like Dwarves or Gnomes from DnD.

 

Perhaps it is even a class in the equestrian schools. Gemology, approximate values on gems. lol

[Pastel 7,630]

I don't see how gems could be a currency since there can't be 2 identical gems.

I mean, we can't say that something costs X gems, seeing how different they can be:

 

 

[Brony Number 42 10,098]

If Rarity's talent is to find gems, it is possible that other unicorns can do the same. It also appears that gems are very common. It is easy to find a lot of them just a few feet under ground, just about anywhere. This would imply that they are not very valuable. 

 

However, dragons eat them, so they have a nutritious value. Maybe they could be refined and that nutritious value could be extracted and used for various purposes. Or perhaps gems are sold to dragons. Maybe there is some kind of loose trade agreement with dragons.

 

They have value, but commodities are best traded on a commodities market. Experts establish the prices based on economic forces. Imagine buying stuff from a store and leaving a pile of gems that you assume has equal value to the items you took. I mean, you wouldn't take a book and leave a sandwich at the counter as payment. Or would you....