Quote:
Originally posted by theking
There is actual worth and there is potential worth. If an individual sees a potential worth and he wants to convince a reluctant seller to sell, he then will offer more than than the actual worth. Does this make sense to you. I, just as one example, once bought a classic car. The owner did not want to sell, but I offered an amount that was to tempting for him to refuse and an amount that was way more than the actual worth of the car. Does any of this make sense to you?
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if you see potential worth then you're buying speculation which becomes risky. the car example isn't a good one, thats a case of poor supply upping the price.