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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: E. Charters who wrote (80703)	1/12/2002 1:59:51 PM
From: Don Lloyd	Read Replies (2) \| Respond to of 116753

EC - >>The combination of the Subjective Theory of Value and the Law of Diminishing Marginal Utility.<< Which is? A cup of water may be of near infinite subjective value to someone who has no water, but the marginal subjective loss that an owner of a fresh water stream experiences in giving up one cup is negligible. So an exchange between the two of almost anything for a cup of water mutually benefits both. Diamonds, on the other hand, being scarce and hard to acquire, do represent a significant loss in subjective value for even a single one, but not compared to a life-sustaining cup of water if the diamond is the only available trade good that will be accepted. The value of the diamond rests on the existence of someone so rich that all of his more urgent needs are already satisfied and whose cash holdings are so large that even the marginal utility of the loss of $1000's of dollars required to trade for a diamond is not subjectively significant as the remaining cash is still available to satisfy most future needs. Message 16741402 Message 16766776 Regards, Don