GP Price Skyrocket - What?

Why do people assume that gold prices would skyrocket if bots stopped working/mass gold farms were stopped? Yes, it would hit an initial panic bump that people could profit from but if you consider it economically then the market is already saturated with gold so much that it isn't going to matter if there is anymore gold pumped into the system. Currency is a circular flow from person to person, and it is an open system that allows plenty of gold to come into the system but there aren't too many gold sinks that would revitalize the economy and lessen the current inflation. The only way to combat inflation is to take money out of the system and stop the flow from coming in as drastically.

Discuss reasoning.

 

But you have to think that gold will run out then what? Gold is used for charging choatics,torva etc and when all the excess gold is used the prices will rise

 

Look at stocks in real life. Both things get value or less value, from fear.

 

Yes - and gold is used for construction/herblore - yet it isn't really, as the gold just goes to somebody else... and the materials are what are really used.
(The ONLY reasonable way that I believe gold gets into the game is alching and coinshare).

 

Only way the GP can raise if people skill then use the items they make.

 

There will be more demand and less stock..

 

No bots means the price of just about every commodity would go up due to the dramatic decrease in 'players' to supply the current market.

Added to the amount of commodities flowing into the game decreasing, you would then see all botfarms collapse that are selling bulk GP. This would create a less competitive market, causing prices to rise.

Because of the lack of choices for people to go to for said GP, sellers will then raise their price to cash in on demand.

Because of the price increases for said commodities, people would need more GP than they would have needed before.

The raised price may impact what some people purchase, but that would not impact on a large scale (just look at how well gold farming websites like G4Fun are doing with their high prices).

 

Why would you see an increase in demand? and how would you see a decrease in stock?

If the bots stop working/all botters get banned it is very unlikely that the volume of people will be getting and using chaotics enough to have to recharge them so that it will take all the gold out of the economy.

A very crucial point, the gold market is a sellers market and not a buyers market. I did overlook the influence on the gold market by commodity market though, it would take a very long time to take all of the resources out of the game that was put in if all of the bots stopped working.

 

I wouldn't worry until it actually happens. Most people like to predict things they have no way of truly knowing. Remember when everyone thought whips would go up to like 5mil or more, so everyone was buying and selling them for 3mil thinking they were getting an awesome deal? Lol

 

Very wel said man! I agree with him completely

 

Another thing you have to consider is this:

You talk about all this gold being in the economy, but it isn't 100% of the economy that RWT's. So once I buy that 100M in items from the GE, it is potentially going to someone that is against RWT, or even worse - someone that doesn't RWT and will quit tomorrow with that 100M just sitting in the bank.

 

Because people will continue to want to buy gp as they have been doing for staking, dicing etc.

Decrease in stock because there are no more bots producing this stock.

 

Less bots means...

Less whips, dfs's, dragon boots, Onyx stones, herbs, fish, logs, runes, ores, bars, half-completed products (e.g, Bows (u)), arrows, dragon picks, dragon hatchets, bones, ashes, gems, robes, gmauls, ..., flax. Not to mention less Dg tokens, meaning less chaotic weapons and more whips again.

What does all this mean? Prices of all these items will increse (and everything else will follow suit), causing more demand for gold. Yes, the gold supply won't decrease, but the inflation ingame will mean people need to buy more coins for the same item. More demand for gold, and best-case scenario being a fixed supply of gold means ultimately more expensive gold.

 

^Shorter explanation of what I was trying to say.

This is why I fucking love you Kero.

 

how would the gold supply not decrease.

less bots = less goldfarmers = less gold.

no?

 

Coinshare doesn't really even bring money into the game because the item is placed in the GE and the money that is paid for it leaves the game. Therefore, CS can actually be a way for gp to exit the game (when the item is sold for more than -5% GE price).

 

^Never really thought of it that way.

 

Gold will never run out, it will be circulated forever.

 

If jagex banned mule accounts and bots containing lots of goods the price would decrease, but if they just ban bots that are generating money they will do nothing.