Value of gold?

[mustanggtpower]

Is it me or does it seem gold prices [RSGP] are starting to finally creep back up?

 

[Viou]

Just you.

Gold prices will never go back up unless there is a critical change in runescape by Jagex.

 

[R2Pleasent]

People invest too much worry into the price per mil. What really matters is the market size in USD of the RS GP market (how much real $ people are spending on GP). GP prices do more to reflect in-game inflation than the real-life value of GP.

 

[Viou]

People invest too much worry into the price per mil. What really matters is the market size in USD of the RS GP market (how much real $ people are spending on GP). GP prices do more to reflect in-game inflation than the real-life value of GP.

Couldn't agree more, $1000 buys roughly the same amount of gold in proportion to the average wealth as it always has. Obviously $1000 will buy more gold (in coins) than it would in 2005 for example because there is more gold in game.

 

[mustanggtpower]

True but when free trade came back prices dropped to about .50-.55 a mil and now it seems its creeping up and more people are buying for .60-.70, could just be me wanting to see it though.

 

[R2Pleasent]

Actually, at Free Trade's release, the price in China for 1 Mil was $1.50+ wholesale for the first 1-2 weeks. Sythe prices hovered around $1-1.20 retail, but a seller like myself could sell 20B in one day (yeah, 20B, $20,000+, in one day).

That rush has settled down (as it naturally would) and GP prices are now fairly even between China and Sythe. The fluctuations in sales volumes have also settled down; there are certainly less buyers than at the introduction of Free Trade. However, this is all simple economics. When Free Trade was released, both Supply and Demand shifted up. This is because the new update brought back more players, and gave players more reasons to buy gold (staking, pking, trading rares). Supply increased as well, because GP that was before untradeable was now being sold by other players. Demand increased more than supply initially, however, as companies could barely keep up with their orders for the first couple of weeks.

Fast forward to April, and the temporary demand spurt from Free Trade is essentially over. The market has hit more or less an equilibrium, and the sales volume for RS Gold, I would say, is fairly consistent now. Due to the demand for RS Gold, many people are botting for hours on end to make money. This has resulted in a steady increase in supply of RS GP, and should also result in a slow and steady decline in RS gold prices per million (inflation).

There are items in RS that are immune to inflation. Any Discontinued Item will not be impacted by regular inflation. Its supply will never increase, and therefore its ingame gp price will forcedly grow as the supply of gp continues to accumulate. Furthermore, inflation itself does not seem to have a negative impact on the RL GP Market. I have been selling since 2007, and I can certainly say that the average order today is basically identical to the average order in 2007, despite the fact that I sold mils for $4-5 each in 2007. Four years ago, a 50M order was considered bulk. Today, 50M is considered quite average.

 

[mustanggtpower]

Actually, at Free Trade's release, the price in China for 1 Mil was $1.50+ wholesale for the first 1-2 weeks. Sythe prices hovered around $1-1.20 retail, but a seller like myself could sell 20B in one day (yeah, 20B, $20,000+, in one day).

That rush has settled down (as it naturally would) and GP prices are now fairly even between China and Sythe. The fluctuations in sales volumes have also settled down; there are certainly less buyers than at the introduction of Free Trade. However, this is all simple economics. When Free Trade was released, both Supply and Demand shifted up. This is because the new update brought back more players, and gave players more reasons to buy gold (staking, pking, trading rares). Supply increased as well, because GP that was before untradeable was now being sold by other players. Demand increased more than supply initially, however, as companies could barely keep up with their orders for the first couple of weeks.

Fast forward to April, and the temporary demand spurt from Free Trade is essentially over. The market has hit more or less an equilibrium, and the sales volume for RS Gold, I would say, is fairly consistent now. Due to the demand for RS Gold, many people are botting for hours on end to make money. This has resulted in a steady increase in supply of RS GP, and should also result in a slow and steady decline in RS gold prices per million (inflation).

There are items in RS that are immune to inflation. Any Discontinued Item will not be impacted by regular inflation. Its supply will never increase, and therefore its ingame gp price will forcedly grow as the supply of gp continues to accumulate. Furthermore, inflation itself does not seem to have a negative impact on the RL GP Market. I have been selling since 2007, and I can certainly say that the average order today is basically identical to the average order in 2007, despite the fact that I sold mils for $4-5 each in 2007. Four years ago, a 50M order was considered bulk. Today, 50M is considered quite average.

Thanks for clearing it up, I guess economics is fairly steady in runescape as well as in the real world.

 

Actually, at Free Trade's release, the price in China for 1 Mil was $1.50+ wholesale for the first 1-2 weeks. Sythe prices hovered around $1-1.20 retail, but a seller like myself could sell 20B in one day (yeah, 20B, $20,000+, in one day).

That rush has settled down (as it naturally would) and GP prices are now fairly even between China and Sythe. The fluctuations in sales volumes have also settled down; there are certainly less buyers than at the introduction of Free Trade. However, this is all simple economics. When Free Trade was released, both Supply and Demand shifted up. This is because the new update brought back more players, and gave players more reasons to buy gold (staking, pking, trading rares). Supply increased as well, because GP that was before untradeable was now being sold by other players. Demand increased more than supply initially, however, as companies could barely keep up with their orders for the first couple of weeks.

Fast forward to April, and the temporary demand spurt from Free Trade is essentially over. The market has hit more or less an equilibrium, and the sales volume for RS Gold, I would say, is fairly consistent now. Due to the demand for RS Gold, many people are botting for hours on end to make money. This has resulted in a steady increase in supply of RS GP, and should also result in a slow and steady decline in RS gold prices per million (inflation).

There are items in RS that are immune to inflation. Any Discontinued Item will not be impacted by regular inflation. Its supply will never increase, and therefore its ingame gp price will forcedly grow as the supply of gp continues to accumulate. Furthermore, inflation itself does not seem to have a negative impact on the RL GP Market. I have been selling since 2007, and I can certainly say that the average order today is basically identical to the average order in 2007, despite the fact that I sold mils for $4-5 each in 2007. Four years ago, a 50M order was considered bulk. Today, 50M is considered quite average.

Always love to read your thought about rs economy related to real life. Yet another good thought! Be active in this section plz

 

[hold alt f4]

WOW NICE ONE R2PLEASANT! KNOWN U FOR YEARS NOW AND UR STILL NOT BANNED ! :d LEGIT!

 

[S]

Highly unlikely it will increase. Refer to what R2P said.

The only way i see it increasing if there is another skill brought out, i.e like construction; that would require a large capital to train and level - resulting in more GP needed in the game.

Notice all the recent ingame updates. Nex, new vengeance spells etc. Even though all these could be obtained and accessed with the correct levels - to train these levels RSGP is required. Not only that, the rewards from i.e NEX are marvelous; and for someone who cannot access that due to lack of levels/gear - they resort to purchasing the items from the G.E = RSGP needed.

Jagex are very weary of all their updates. They wont bring out updates that simple allow players to maximise profits, there will ALWAYS be a road of loss (RSGP LOSS), before that profit can be reached. Resulting in more RSGP needed in the game.

You also have to think about the underlying mechanics. Jagex will ALWAYS have a way to take RSGP out of the game and control inflation / demand and supply.