Comment Re:How much are they worth? (Score 1) 156
Economically, the intrinsic value of something is approximately
Nothing has intrinsic value. Individuals decide how much value things have for themselves.
The concept of "intrinsic value" requires the existence of an "Uber-Evaluator" who dictates that intrinsic value. Because that value can and will be radically different to different people at different times. But no such evaluator exists, so I must agree with the AC comment that nothing has intrinsic value. Items can have radically different values to individuals and markets depending on circumstance.
Item: An artist spends 2000 hours creating a life-sized Salvador-Dali-esque image of Donald Duck in marble. Intrinsic value? Determined by who?
Item: An operational car a family just wants to get rid of. They donate it to a car-reseller charity. Intrinsic value of the car? Determined by who?
Item: 27.5 pound block of gold. Intrinsic value? Determined by who? To a starving Ethiopian child, it's without value.
Item: Side of beef. Intrinsic value? Determined by who? To the starving Ethiopian, extremely high value. To a vegan, no value at all.
The concept of "intrinsic" value is a lot like centrifugal force - it doesn't actually exist, but we have an idea of what you mean: a "typical price" fetched in a "functioning market" in "typical circumstances." Is a bubble market a functioning market? Heck, this year's Nobel Prize in Economics (yeah, I know it's not named that specifically) was awarded to three co-winners. One, Robert Shiller has done extensive work on bubbles. Another, Eugene Fama, denies bubbles even exist!