Answer:
A precious stone, as clear as diamond. Seek it out while the sun's near the horizon. Though you can walk on water with its power, try to keep it, and it'll vanish in an hour.
What looks back but cannot see?
Three little letters, a paradox to some. The worse that it is, the better it becomes.
It happens when something has been cut with H2O.
Dies half its life. Lives the rest. Dances without music. Breathes without breath.
What can you lose that will cause other people to lose theirs too?