Runescape Items as Real-Life Investments

Exactly what i'd be doing if i had enough $$ irl. lol.

 

If you read the post, I have adjusted the prices to their true values at the time. The changing prices of RS GP are fully reflected in the valuations.

Sorry, but you are off your rocker if you are saying a 20.75% increase over 4 years (especially the past 4 years) is "easily" attained. Just to let you realize how absolutely crazy 20.75% interest is:

If you invested $25,000 at 20.75% compounded anually over 20 years, you would end up with over $1 Million. I doubt you can find ANY investment portfolio which has averaged 20.75% over the longterm.

 

This is so absurd. If someone could do this consistently they'd be well on their way to being the richest person on the planet in a few years. There's no sustainable way that the real world market could grow 30% annually (and that's your minimum)

[Citation Needed]

 

Stock market won't perm ban you and your investment for IRL trading lol

 

My bad. Forgot about this. Had a snack before I actually replied.

Previous post editted

 

Warren Buffet - My parents can and do.

OP is where the information is from. He said I think an 83% rise in 4 years, which divides to a 20.75% yearly return. A very healthy return, but the same as you could make on the share market.

 

Share market returns are not compounded.

Your right, but you can over 4 years which is what your time frame is.

 

nope
http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined

Even if you bought at min ever and sold at max ever, still not an average of those numbers.

 

clearly never invested in the stock market and has no idea how investments work.

10-15 percent return on stocks is considered well above average. double your money? just absurd.

 

Or make it a goldmine. :nuts:

 

Good luck actually selling a phat for that.

 

If you were to invest in a party hat now, for such a significant rise in prices it would take years and by then, Runescape will have died off and Jagex will care less and less about it or the Runescape economy.

 

I have looked into this but if i am gonna invest i am gonna invest big and that what is off putting spending 40k+ on party hats to loose them for rwting and loose my investment cash.If there was a way to guarantee that i would not loose the items i wouldn't even think twice about it.

 

I'm not saying you put all your eggs in one basket. What I am saying is this:

- Runescape Items are directly interchangeable for Real Money now (Free Trade)
- Discontinued Items, specifically Party Hats, have ALWAYS been highly demanded, since their release
- The supply of Discontinued Items can only decrease over time, never increase

So essentially, you have an asset which is very liquid, in high demand, and is no longer in production.

If I was to start an investment portfolio today, I'd set aside 10-15% to put into Runescape Discontinued Items. Go ahead and tell me this is absurd, but when I tell people I earn a living on Runescape, they tell me I'm a liar. Do not make the mistake of thinking in traditional terms. There's no money in that.

And once again, the stock indices do not lie. Everyone is speaking about stocks as if anyone with a bit of knowledge of the markets could easily make 10% per year. Fact is, the majority of portfolios have made nowhere near that over the past four years. A successful portfolio over the past 4 years would be a 10% TOTAL increase, or 2.5% per year.

 

I thought this was pretty obvious?

 

This is a very interesting concept, except you're forgetting one very important variable: the price of gp itself. The fact is even if partyhats increase by millions and billions in game, if the price per mill declines, you could still very well be losing money even though technically the price is continually going up.

For instance, I truly believe price per mill of gp can only go down at this stage. More and more people every day are starting their own mini gold farming operations, and Jagex seems to be banning less and less bots. In other words, gp is constantly and continually being flooded ever more at an increased rate into the market.

I could care less if the blue partyhat goes up a bill, if the price per mill of gp goes down to 0.2 or 0.3, you're not making any money, you're losing it.

 

dude, thats an awesome idea haha. why didnt i think of that

 

thats a bit low, with inflation you would probably be losing money.

 

Did you actually read the first page? It fully takes into account the changing price of GP. A Blue Party Hat was 450M Jan 1, 2007. If I took today's GP Rate, that would be $337.50. Instead, i used the $3 rate, which was the average buy/sell price at the time. I sold GP in those days, I know what the prices were, and I was being fairly conservative.

True, but if you take into account the crash of 2008, most portfolios were decimated. The DJIA still hasn't even recovered back to its value in 2007. Inflation was also extremely low for this period due to the crash. Most argue that the economy was in a state of deflation.

 

If it was that good an idea more people would be doing it surely?