I find many players who feel the need "to spend their gold before it's too late." I question the wisdom of that. Because, if they do, they won't have any gold at all left anymore after the squish. It sounds as if they need to spend their gold to prevent winding up poor. "You can't squeeze blood out of water" they seem to think.
I used part of my gold to complete the flying trainings of my 80+ characters. But I intend to keep the rest.
After all, even though I was not always rich in WoW, both in Cataclysm and in Mists of Pandaria was I ever short on money neither. The money is everywhere here in Frostwolf! It happens virtually by itself, really! It is customary for my level 18+ characters to have thousands of gold on them. No begging involved, I simply incoperate money making in my game play.
Zap2011 mentions the expanding supply of available currency. I do not quite know what he means by that? Is it because quest rewards and such appear to be doubled, proportionally to what we own? Please clarify <3
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Hi Shiarta... another 'hole in one'! Sensible to complete flying, and if you have toons with small bags... the fixed price items.
Expansion of a currency can take many forms. In Britain the Office of National Statistics keeps a record of all banknotes printed by the Bank of England, in order that interested parites may guage the total circulation of British currency eg Pounds Sterling. (That even the BoE has NO RECORD of expansion of Sterling in terms of money created in other ways eg. electronically, as debt in company records, as balances in financial trading systems or as non-bank loans... well we won't mention that!)
As we have been informed... Expansion of gold in these realms comes from Players looting mobs (where gold is looted by the player), from quest rewards where gold is awarded, and from sales of items to vendors who pay in newly created gold. In those cases more gold is actually created by the server and deposited into the player's inventory, thus the money supply has expanded. This is quite normal and in fact required for the formation of an economy within each realm. However, as more and more gold is produced prices for individual items tend to rise, eroding savings and increasing the problems faced by those with no capital or on low incomes... errr... I mean ... making problems for the scrubs!
I agree that its possible to level, train, and gear as a new player here simply from the quests and the grind. Possible... but not easy on the WoLK realms. Maybe thats the appeal.
(Cata+realms excluded thats WoW in easy mode!)
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Banned
tl;dr ppl suck at and dont understand economics and economic dynamics
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I've sold around 14 million gold on trade market(since molt-down). And I am sitting at around 5 mil atm. I can predict that after squish expensive level 80 materials like crusader orbs, primos, arctic furs, abyss crystals, frozen orbs, stacks of titanium, eternals, lichbloom will all go down in price for a week or 2. Since all the players hoarded them and will be posting them up for sale all at once and driving the price down. Smart people who have not spent their millions and kept half of their riches will have enough cash flow to buy up all these cheap mats within a few weeks and re-sell for a lot more or turn them into other items and sell for a profit that's even greater. After about a month things will go back to being exactly as they were before "gold-squish" was announced few months ago. Nothing will change. Rich will stay rich. Poor will stay poor. I am just predicting a small period of price fluctuations the first few weeks.
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not agree with u
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Greetings Zap. Please, allow me to backtrack for a moment; I'm hoping that I may learn something.
I think some of the comments did not relate to the gold squish. With the assumption that this small (hypothetical) model can make reasonably accurate predictions on that topic allow me to continue your metaphor and ask a few questions. Please correct me if I'm wrong.
Alternatively, suppose that, just before purchasing the orange, the boat suddenly rocks and Person 3 accidentally drops £500 in the ocean. I assume Person 1 will reduce the cost of his orange to £500. Of course Person 2, who only has £100 will die of thirst, and his money will be (effectively) worthless. Is this correct?
But suppose another Person (4) in a lifejacket floats by and is helped onto the boat. It turns out that he has three(3) oranges. What, in your experience, is he more likely to do? Ive kept the options small to relate to WoW.
1. Sell ALL his oranges for £100.
2. Sell 1 for £450 and 1 for £100
3. Sell both for £450
4. Keep his oranges until the other Persons get thirsty again.
5. Produce £550 and purchase the orange from Person 1
6. Also charge £500 for his oranges
Which action will be most beneficial to him?
It just occurred to me that the Lifeboat example is somewhat restricted in its ability to describe the Warmane community. Could you continue this example by adding another consumer? I am interested, of course, in the answers to the questions posed above.
PS: Also, don't think I missed the irony of people in a lifeboat dying of thirst. Most amusing.
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Perhaps, but it is fun to speculate and potentially profitable as well. Besides, I think the wise(st) can tell in this case. After all, it's not like looking into a pool of water that will grant you a vision of your destiny... is it?
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Got any spare change there? Alms for the poor? Alms... for the poor?
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why, please do enlighten me how you gonna train your skills for cheaper than the trainer offers, might save a buck or two with that trick!
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Player #1 has 1 000 000 gold - After gold squish - 500 000 gold left
Player #2 has 20 000 gold - After gold squish - 10 000 gold left
^ Buy power doesn't change.
What actually has influence in here? Psychology. In this instance prices are going abnormally up, this is "fastened inflation" let's say, after it reaches certain amount - 50% (due to the gold squish) and you are back to square one or in the best case scenario up to 30% inflation drop than the economy state before gold squish. After couple of weeks (in best case one month) the economy will be at the same level as it was before 'gold squish talk'.
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Thanks again for the responses ....
@Scarr...
I don’t remember where I came across the orange / lifeboat idea it’s not mine sadly, but I agree it’s a great analogy. It’s amazing the number of people who fail to realise that, in that situation, you would have to think very carefully before selling those oranges because you COULD eat them instead!
With this in mind I would possibly stack up on items that are both expensive and consumable (preferably by your ‘toon) ... foodstuffs with the right buffs, fortitude scrolls, potions, and items you use to dress your character. Worst case scenario you end up with a load of buffs that you will get through in the end... and should something happen to the economy on your realm this could save you money and time if these items are in short supply post squish.
Rogs might want a few stacks of poison, hunters some ammo, and reagents for casters may seem small change, but you will resent paying the vendors what is in effect twice what you paid in the first few hours / days pre squish!
@Stonemade...
Completely agree... we are dealing with peoples reactions to an event, and of course these reactions will be full of self interest. Quite right too. 'Greed is good' as Gordon Gecko would have it!
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Banned
thats patently false.
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Selaya, so... there will be half ppl to sell gold for coins to others, and players with low patient, time to farm or brain; will donate to server on exchange for GOLD...
Slowing the submerged economy; and revitalizing that famous phrase... "PAY TO WIN!"<
¿uh?
Servers don't need Rockefellers families that can manipulate the internal or external market of them. They need to have control over their own markets. So if they are cutting half... they know why...
And if no one of you have ever mount or use a WOW server, please... they can find every move you make. They are the system, they give you birth with your account, so have all related to them. A server could even log the actions or chats... Anything it's possible when you made the world.
So server need 50% less gold on players hands. Ok. Sounds good to me. Cos I have no knowledge about the real reason, and expeculate are waste of time to me. I can suppose why... but I prefer to spend time playing for fun.
So Have Fun.
I think it's a good move, if the economy are the same on all realms...
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I smell a discussion between economic liberalism and keynesianism coming
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For a long time people used metals as currency, because they ARE worth something. And even after 10 dollar bills were printed you could still trade them to 10 dollar worth of gold in your bank. You can't just say money is supposed to be worthless, it depends on what you even call money.
In game money does have intrinsic value, 5k gold coins = permission to fly fast mounts at any given time, and this matters the most to poor players.
Some economists like to define inflation as the devaluation of money by money being printed, increasing it's supply so it's price falls. Simple supply and demand. A good example of this in-game was after the moltdown, when the servers came back Warmane decided to give 5k to every char created which elevated prices to absurdity if you compare to the prices back in retail.
Yea, how the market will react after the squish is hard to guess since psychology plays a big role. RL economics is a lot different from it in-game is SO many different aspects, it's hard to compare them in-depth.
