system
Given the following post, respond as if you're commenting on Reddit:
human
How can the average consumer figure out if a commodity they want to buy is overinflated (like diamond jewelry is)?

Edit: I think the question I meant to ask is "how can the average consumer figure out if a commodity they want to buy will appreciate or depreciate in value?"
gpt
You don't. As value is subjective, whether or not a commodity is priced too high is a personal call.





If, however, you mean whether the price you're paying is higher than other parties, you have to carry out your own research: at what price does a given producer sell, what is the *world* market price and what is the market price in your country. Then find all the taxes and trade treaties that bring about any disparity should you find one.



If the commodity is produced locally, I'd also look into any regulatory agencies, the subsidies and licensing laws pertinent to the good/service and the market concentration to get an idea of how competitive the market is. (Technically, competition is not a feature exclusive to higher numbers of competitors; its behaviour. A handful of large businesses can be cutthroat competitive against one another: market concentration is just a good rule of thumb.)