Value of Gems in Equestria

[sweetolebob18 728]

Some of the episodes show some of the characters using gems as money. (Just For Sidekicks, for example).  Maud's comment that Rarity's gems were common got me thinking  "How valuable are they?"

Spike (& presumably all Dragons) eats them, Rarity uses them as sequins in school play costumes. Can they be that valuable, or are they like pocket change?  On the other hand, the Crusaders bought (ICR what but it was big) & the implication was that they paid for it with a gem they were given by Spike. 

[Frozen The Unicorn 484]

I get the impression that Gem's are more of a commodity instead of a currency. Bits are still the primary form of currency in Equestria. I think that  Common Gems, such as the ones in the caves under Ponyville, are likely to be common and therefore not very valuable. As on our world, I think that gems which are less common would probably be worth much more. Gem's may also be used as a sort of unofficial currency, and used for trading based on rarity and need. 

[Firedog 321]

Could simply be confusion of the value of gems that allows people to accept them as payment. 

 

Could easily happen in our world and does. Companies sell common gems as rare and get ridiculous amounts for them. 

 

I can also see someone accepting a quartz crystal as a bribe in our world despite the fact that it is worthless. I think it's due to this mis confusion of value that makes them have value basically

[cmarston1 5,962]

With how abundant they are,  I don't think they are as valuable to ponies as gems would be to us.

[Jeric 46,873]

9 hours ago, sweetolebob18 said:

Some of the episodes show some of the characters using gems as money. (Just For Sidekicks, for example).  Maud's comment that Rarity's gems were common got me thinking  "How valuable are they?"

Spike (& presumably all Dragons) eats them, Rarity uses them as sequins in school play costumes. Can they be that valuable, or are they like pocket change?  On the other hand, the Crusaders bought (ICR what but it was big) & the implication was that they paid for it with a gem they were given by Spike. 

Every bit of my econ and finance education tells me that there will be no sufficient answer to the currency and economy questions that the show raises. It's best not to think about it. 

4 hours ago, Firedog said:

Could simply be confusion of the value of gems that allows people to accept them as payment. 

 

Could easily happen in our world and does. Companies sell common gems as rare and get ridiculous amounts for them. 

 

I can also see someone accepting a quartz crystal as a bribe in our world despite the fact that it is worthless. I think it's due to this mis confusion of value that makes them have value basically

The Jeweler Pony may have a talent for sussing out value, unless her talent is specifically centered around cuts. Supply demand perception is one factor in value. Ponies like Rarity and Maud would also have a negative impact on value. They are really Deep Beers destroyers.