I think you're confusing intrinsic value and market value. The latter is what people are willing and able to pay.The Annoyed Man wrote:That is a fact, Jack! Thing is, the intrinsic value of a thing varies from person to person and object to object. Merriam Webster defines "intrinsic" as meaning "belonging to the essential nature or constitution of a thing <the intrinsic worth of a gem> <the intrinsic brightness of a star>." Well, the intrinsic value of diamonds changes daily. If a buyer wants one badly enough and pays $2500 for a $1250 rifle, then that is its intrinsic value.....to him (or her).Panda wrote:The intrinsic value is the same no matter what the market does.
While you're correct that intrinsic value can vary, it's because "the essential nature" itself has different worth. To use your example, diamonds have little intrinsic value except for those engaged in certain industrial processes, and for those purposes synthetic diamonds are often as good as natural. The market value of natural diamonds is dominated by their extrinsic value.
The intrinsic value of a rifle is based on caliber, accuracy, other factors related to function, and how the person will use it. The intrinsic value is unaffected by supply and demand.