Realtive value assesment model

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Daddieslittlehelper
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Realtive value assesment model

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Post by Daddieslittlehelper »

C-common Value. Before-market influence of Price discovery. Ergo it gives you the value that is outside the effects of fear, greed, and hype that the market provides.

Ok so moving from austrian ecconomic theory.

You take all the different values held by all the different groups, people, agents you name it.

a Diamond

True we need to set the currency to set the value in first.

Agent one: "It's value is it durablity" $180.00

Two: "It value is it's usefulness" $50.00

three: "It's beauty" $100.00

Four: "it's a snobby object" $20.00

and so on....

Then we look at the quanties or percentages, and take the largest percentage as the base value, lets say the biggest percentage see them as beautiful

$100 holds the center ground, now the others:-

$180.00 group and the $20.00 neturalise, the $180 seek to push the value up $80 and the other group the value down $80, provided ofcourse that the percentages of people in these groups are more or less equal.

$100 dollars stays

The last group in this explaination, possibly manufactures of something that uses diamonds in the process, see the value arround $50 during the working season, during an off production seaon that might change.

Still they seek to bring the value down $50. Now what percentage do they have?

Lets say that the biggest percentage the $100 group makes up 60% of the market and the other Groups are equal 13.3% each.

So we have 60% group at $100 dollars.

Then two groups that neturalise 26.6%.

Together 86.6% of the market hold the $100 position.

Then we look at the 13.3% that think the value should be 50% less.

So simply we'll devide the $100 by 13.3 and then minus that amount off the value.

Leaving with all people considered: A market value in Dollars for a diamond of- $86.70

Now this is the base value, when in play, supply and demand, seasonal changes will effect that value expreesed in Dollars, Christmas more maybe sort for presents, in extremes people may even reassess their inital evaluations so on and so fourth.

Basically anyway...

Enjoy.
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