f a populous community, which has sufficiently advanced
methods and requirements to use it, may have high value; an exactly
similar deposit, if far removed from points of consumption, handicapped
by transportation, or available only to people without developed methods
for its use, may have little or no value. Intrinsically the deposits are
alike; but extrinsically they are far different, and their values are
correspondingly unlike. Even two adjacent properties, differently
managed and controlled, and with different relations to markets, may
have somewhat different values depending on the use made of them. The
value of a deposit may vary from year to year with changes in demand for
its output, or with changes in metallurgical and other processes which
make its use possible. Minerals of small bulk and high value, as for
instance gold, platinum, and diamonds, have a nearly standard value
related to their intrinsic properties, because they can be transported
so easily to any part of the world. On the other hand, materials of
large bulk and low unit value, such as coal, iron ore, and clay, may
have highly varying values independently of their physical
characteristics, because of their relative immobility. But the values
even of gold and precious stones represent a combination of intrinsic
qualities and of demand. A diamond is made of carbon but is more
valuable than coal or graphite because it appeals to the esthetic taste.
It is only because man introduces an element of demand that the diamond
takes on value. In short, man is the multiplier and the mineral
substance is the multiplicand in the product known as value.

Recognition of the two elements of value is vital to a clear
understanding of the methods and problems of valuation of minerals. It
is too often assumed that the physical properties constitute the sole
factor.

Looked at in a large way, the returns from the mineral industry are
commensurate with the effort put into discovery and development of
mineral resources, even though the returns to lucky individuals have
been excessive. In respect to the importance of the human energy
element, the mining of minerals is not unlike the cropping of soils.
Some interesting economic studies have been made of mining districts to
ascertain whether the total return has been equal to the total
investments by both successful and unsuccessful participants. The
results show that, even in some of the most successful districts, there