Answer:
I am seen in the water. If seen in the sky, I am in the rainbow, a jay's feather, and lapis lazuli.
Though easy to spot, when allowed to plume, It is hard to see, when held in a room.
Three little letters. A paradox to some. The worse that it is, the better it becomes.
It doesn't live within a house, nor does it live without. Most will use it when they come in, and again when they go out.
Fatherless and motherless. Born without sin, roared when it came into the world. And never spoke again.
I have two coins, one is marked George I and one is marked George IV. One is genuine but one is a forgery. Which is the forgery?