Current Gold Inflation

[konfeta]

Technically it's more valuable to salvage level 60 blues right now. Have you seen the freaking prices on Inferno-Blue mat? It's higher than Rare-Mat. I think the cost doubled since the commodities AH went down, probably because many people are crafting now.

[AngleWyrm]

Crafting is meant to be a gold sink ... It doesn't matter if the value of crafting mats goes down, because more crafting mats encourage more actual crafting, and actual crafting sinks gold.

Nope. Value does not reside in gold pieces.

Value, Merit, Return on Investment, whatever you want to call it, it is the measure of what you can do with something vs what you had to do to get it.

Barter and Trade until the HyperTwink Singularity is reached.

[InertBlowfish]

Why don't all you economist geniuses get into real-world trading, if you're so sure of your opinions?
That's right... it involves risk.
It's a video game, who cares if the market collapses.
Chill out.

[Hideo]

Crafting is meant to be a gold sink, but since informed players don't use it, it is effective. Even worse, it means that it is more valuable to vendor unwanted blues and rares instead of salvaging them (thus adding even more gold into the game).

Reducing the crafting costs to make artisans more enticing is something they said they plan to do, hopefully they reduce the costs enough. I've also suggested simply removing the vendor option from the table, thus removing that gold fountain from the game.

It doesn't matter if the value of crafting mats goes down, because more crafting mats encourage more actual crafting, and actual crafting sinks gold.

Dude, are you ****ing serious? Decreasing crafting cost removes crafting as a viable gold sink and it also creates a flood of great rolls on the market. The result will be greater gold inflation and greater item inflation on top of that. Essentially, everything except perfect Inferno rolls will be dirt cheap.

[calciumantacid]

Dude, are you ****ing serious? Decreasing crafting cost removes crafting as a viable gold sink and it also creates a flood of great rolls on the market. The result will be greater gold inflation and greater item inflation on top of that. Essentially, everything except perfect Inferno rolls will be dirt cheap.

A flood of items to the market would cause the prices to drop, no? That's deflation.

[The Rockman]

How is gold inflation going? I checked some sites and it turns out there is about 10% inflation per DAY. That's a MAJOR hyperinflation! Is that true? That would mean, that gold economy is collapsing, just as I predicted.

Its supply and demand.
Your talking about gold farming gold prices right? You have to realize there's a few thing going on here.
A: theres more than one gold selling site = you get cost cutting to take trade from your competitors IE seller A sells it at 1000000 gold per $10 seller B starts selling at $8.
B. Price depends on what people will pay for D3 gold IE no one will pay $1 for 100 gold when any barrel can give 100 gold.
Both of these will reduce the price of D3 gold.
Lastly C: gold per min of bot farms etc, if this doubles the price of gold will generally halve. At start gold supply was low and demand high, now gold supply is approaching its max (unless botters start running more bot farms) and demand has levelled off/decreased (if some one brought 100 million gold he not going to want to buy any more for ages).

As for prices everything will fall in real world prices no matter what, as more items are pumped into the game world, the question is what happens with the gold to $ ratio.

Oh and another thing that gold duping rumour will have messed up gold prices, (large influx of gold means gold:anything else becomes huge) just like in the real world a rumour about how much of something there is can cause huge problems.
Case in point a little while back there was the possiblity that oil tanker drivers where going to go on strike in the UK what happened mass panic buying of petrol etc that accaully cause a shortage of petrol.
Also in diamonds trade there's diamonds sitting in storage that not being sold to keep the price of diamonds on the market high.

As for inflation/deflation it depends on the changes in price between the two. TBH it should deflation in general as more of everything get pumped into the game world = game stuff (gold items) to a $ (the question is how much how fast).

[MagisterMan]

What are you guys buying to hedge against inflation? I've bought a couple of Justice Lantern at ~4m each, because I won't be playing for a couple of weeks. I see them as a fairly low risk investments since they are solid items that will most likely not be touched by the future patch, and they are also somewhat of niche items that can't get overshadowed (I consider weapons bad investments, because for each day you can get a higher dps weapon for a lower amount of gold).

edit: investment might be a bad word to use in this context, it is speculation after all, because I won't be using these items.

[GreenDiablo]

Why don't all you economist geniuses get into real-world trading, if you're so sure of your opinions?
That's right... it involves risk.
It's a video game, who cares if the market collapses.
Chill out.

Well said lol. I actually want to see the market collapse...when there is chaos, there is also opportunity

[ysuol]

It might turn out that I and a lot of 'normal gamers' are going to play without using the AH after all.
Stuff starts to be so expensive I already can't really get more upgrades as it is. I expect that eventually the price of 'not so perfect' items will drop or stabilize somewhere simply because less and less people will need them.
For the real good gear, you buy gold, or use rmah, or just play for 10 years to get them and trade with friends.

[Jonboy]

The biggest gold sink is not crafting or repairs right now. The biggest gold sink is the 15% fee on the gold auction house. I guarantee you that is removing more gold from the economy right now than anything else.

We are definitely going to see inflation for at least a couple more months. There just isn't much gold in the game right now because people have only been playing for a month.

After that, I think that Blizzard's ability to control botting will be a bigger factor than any current or future gold sinks.