Intrinsic value

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[edit] Intrinsic value

In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value. It is ordinarily calculated by summing the future income generated by the asset, and discounting it to the present value. (If the issuing authority fail to honor it, then it become worthless as a piece of paper) Silver and gold have its own extrinsic value as to the its own worth as a metal value.

See extrinsic value