B0ycey wrote:Although are you saying the demand for water is not high?
Sort of, it's a little more nuanced than that. I'm saying the demand for water is not always high. It can be high, but it's not always high. Further, overall, when the utility of water is factored in, the overall demand is actually not very high. This is hard to understand because well, we need water to live. However, we only need a very very small amount of "high valued" water to live. After that, water is not high valued.
As I said, this is the fundamental concept to solving he diamond paradox (or in your case, the gold paradox). Only the first few liters of water we use to stay alive has super high demand. Once you have enough water to stay alive, more water just isn't as important as those first few liters. The value of water drops dramatically. Now, the next few gallons certainly still has value and demand (just not as high as the first few liters). However, once those needs are met (like hygiene, cooking, cleaning), the demand drops even more.
The end result is water being priced very very low in comparison to gold or diamonds.
Due to this lowered demand/value of water with each additional gallon that you have access to, the overall price of it stay lows.
Now, I'm saying that value and price are for the most part interchangeable. Thus, because the price is low, the value of water is also low.