In my latest FEE article on profit. The money excerpt:
Now here’s the important element: notice that although the high market price of gold keeps it from being wasted in over-the-top apartment decoration, there are lines of production that can profitably use gold. For example, jewelers who sell necklaces can do a similar calculation and decide, “The extra amount my customers would be willing to pay for a gold necklace rather than, say, a silver necklace justifies the extra expense of putting gold into necklaces rather than silver.”
Indeed, it has to be the case that some entrepreneur can ultimately afford to use a given resource, because otherwise its owners couldn’t make money from it. To paraphrase Yogi Berra, it wouldn’t make sense to say of a resource, Nobody uses that input anymore — it’s too expensive.