Runescape Items as Real-Life Investments

What were your amazing pre-trade money transfering methods? :O


Bit risky investing though, anything could happen.

 

You've been making profit off RSGP for ages Will, if you don't mind saying, how much profit have you roughly made in USD?

OT -
I'm a bit off-put by such investments simply cause Fagex come out with real stupid updates at times which could create a problem.

 

clearly professionals with decades of experience are far surpassed by a 14 year old with no experience in any field to speak of.

 

Exactly, and is premise of 10-20% is a very great return while having some credibility behind it, is virtually bs.
I made a 70% return in 2 years using only common sense and logic.

 

At this point, I think it would be a very risky long-term investment. Even with the return of Free Trade + Wild, Runescape continues to be on the decline (see: http://www.alexa.com/siteinfo/runescape.com), which means the price of GP will probably continue to decline. Also, it's not even clear that Partyhats will continue to go up in GP. I think Partyhats have even gone down a little over the last month, and the more Partyhat owners there are that become comfortable with RWT, the lower they'll go, since most players are teenagers that would much rather have that $2,000+ than a Partyhat.

On the other hand, I think it's a viable short-term investment. Before that last Bonus XP weekend, I noticed some bulk buyers buying up tons of GP (presumably buying a lot more than they could be selling in that same timeframe). My theory is that they then invested this money into short-term flips for XP weekend (e.g., Grenwall Spikes are normally like 1500 GP, but during XP weekend they were selling for over 6000 GP on average, and I even sold a few at like 12000 GP each). If a bulk buyer had put $10,000 of their own money into GP and managed to double this amount by taking advantage of the XP weekend dynamics and then resold afterward, that's like making $10,000 in real life.

Keeping it as a short-term investment helps avoid the longer-term issues like GP (and maybe even rares) declining in value as players leave the game. The primary risk here would be if your account is banned during the process (so you should keep the wealth distributed across several accounts and several IPs), or if the short-term investment doesn't work out as you planned (the Runescape market as a whole is much easier to manipulate and predict than the real world stock market because you can always count on RS players to be impatient and buy high and sell low, but occasionally it's still a challenge).

 

Wow, I'm pretty dumb that I didnt invest in rs items tbh when I see this o;O

 

Yes, actually I did, but apparently you did not read mine. I realize you took into account the price of gp (perhaps I worded that part poorly). The fact is that the price of gp most likely will not go down at a steady calculated rate, and even if it does, it will drop faster than a rare, a blue phat for example, will rise.

If gp falls down to .2 or .3 per mill, the blue phat would have to rise billions in gp to make up for it, which it won't, at least not fast enough.

Example:

You have a blue phat, and let's say it's valued at 2b (for example purposes only). And we can take the average of let's say $0.80/m for it. That would mean the blue phat would be worth around approximately $1600.

Now let's say the price per mill dropped to $0.60/m. In order to break even, the blue phat would have to go from 2b to 2.67b, and would have to climb even higher if you actually wanted to make any money off of it.

I'm not saying the idea wouldn't work, but I'd say right now is a very unpredictable time in RS. Prices of gp might go down exponentially, versus a slow and steady decline.

 

GP price went down because of botters, probably, the mass ban will take a place soon, so expect GP price to go up.

Rares is a very good investment, if you have a time and enough money to buy the rares, you can make much money, just hold it enough and do not panic sell.

 

lol