Monday, July 12, 2010

The Negatives at the End of an Expansion

We are all seeing it now, demand falling, prices plummeting, and more competition. To me that's when you know you are at the end of an expansion. It's my fault for not trying to reach gold cap earlier in the expansion but now I am stuck in a period where my opportunities to make gold are going to be even more restrictive.

I can see this now in the jewelcrafting markets, I see so many new competitors all because they eventually worked their way up to all the epic JC plans finally. So you have this situation where demand has fallen for epic cuts but demand has increased for raw epic gems. How so? This is a direct result of competition increasing in the market place. These players are trying to build their stock as well so everyone is buying up uncut epic gems. But since demand for cut gems has fallen the profit margin between an uncut gem and a cut gem is very slim to none. This has strained my stock pile as well. Even with me posting in trade every night, using my honor to buy gems, and messaging my typical bulk uncut sellers, I have not been able to maintain a descent stock pile. I find myself running out of certain gems frequently. For example, on my realm Bold Cardinal Rubies sell for 105g all while uncut cardinal rubies sell for 105g as well.

It's tough right now and will be till Cata releases. That's why it's critical to have as many professions as possible to make gold with.

How have some of you dealt with these market crashes? I'd love to hear your stories.

Thanks for checking in!


Anonymous said...

That market crash has been observed by many bloggers, and I can also tell that this is the same on my server.
As you already said. The only chance you have is to diversify your ways of making gold. Maxing your professions and closely watching what else you can do with the mats you have or buy.

What I usually do is to let loose on on market and emphasize on another for a week or two. Then com back to that other market and see if/how it changed.

Another way is to try to benefit from all those guys that are in need of raw mats for their business to run. If the end product is almost as cheap as the ingredients, I try to buy mats in bulk when they are a bit cheaper, then keep them for a while and sell them again. This usually takes 3-4 weeks and you lower your liqquid gold for a while, but it's nice to see the result. For example, I have been able to snatch frost lotus for 7g a piece. Bought for like 10k, kept them 3,5 weeks and sold them single and in stacks of 20 for 15g.


NakedJay said...

@ Jinx,
I do the same, I will not work that hard in a market that has crashed but focus my attention to other markets.

I need to create a snatch list for herbs, I've yet to do so. I have a snatch list for just about everything else but I hadn't touched herbs till recently when I got into inscription. This is the same method I use for eternal life and fire, I will buy up cheap eternals then wait 2 to 3 weeks and unload them for huge profits.

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