It's not just the cost to produce it. There's a utility to it, too.
But speaking of price fluctuations, that's what I'm trying to say about price vs value. The value of something isn't what the last price on it was. That's just the price. Value is much harder to pinpoint.
In the world of stocks, the last trade does not at all reflect what the company's real value is, because it doesn't take into account the desires of the liquidity that is trying to act (which can't be known, practically speaking). Just because I trade a stock up a few cents or dollars with my single-intentioned order(s) doesn't make that company worth that much in market capitalization whatsoever.
This was the entire premise behind the 2008 liquidity crisis. Everyone saw high prices and tried to pour sell orders into bids that dried up or weren't there in the first place.
Price vs Value.
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