Saturday, September 11, 2010

Why Liquidate Now?

A few of the other gold blogs have been posting about getting rid of your stockpiles now since cataclysm is on the horizon. Some have even suggested restricting what you sell so you don't get stuck with items that don't sell or you end up taking a loss.

Don't Liquidate Now
I don't agree with most of these ideas. Why? You still have 2 1/2 months till Cataclysm comes out, I'm going to assume Thanksgiving week will be the release like they've done in the past. That is plenty of time to make a lot of sales and there will still be plenty of demand. I would even speculate that you could maintain a stock pile up till the final month then start to unload then. But here's the thing, what are you unloading? There should be several items in your stockpile that you should be maintaining for the launch of Cataclysm anyway, ore, cloth, inks, herbs, etc.. Sure, you will have to unload your epic gem stockpile if you're a jewelcrafter but you should have no problem unloading the remaining gems in the finale month before cataclysm launch.

Profits Still To Be Made
If you happened to have read the post on this subject over at Capped By Cata, he talks about how jewelcrafting with epic gems isn't worth it. His point is everyone already has all the epic gems and will no longer be needing to buy them so in turn, demand falls. I think this is a narrow minded assumption to think that there will no longer be players receiving new upgrades via raids. As of today trade chat on my realm is spammed all day with pug raids looking for members. There will still be plenty of players receiving upgrades all the way till cataclysm launches. I've had fellow players on my realm this week tell me they wanted to gear up on their dps sets so they could level faster.

Think about this, some players only have one good set of gear, whether it be healing, tanking, or dps gear. Depending on leveling style they may want fast queues and need a healing or tank set. Others may want the best dps set to grind through all the quests. What ever it may be they will be upgrading their sets and buying the best gems to put in them. Markets may have crashed but it's foolish to think that there will be no profits to be made. So let's look at some basic economics, demand falls for cut epic gems so as a result demand for uncut gems falls as well. Both prices fall accordingly but a profit margin remains between the two. This profit margin is what is key all the way till cataclysm. Whether it is 10 gold or 30 gold you will still make a good profit depending on the quantity that you sell. I can still sell 15 to 20 gems a night while I sleep at a margin of 20 to 50g each. So twenty gems at 20g is still a 400g profit just for an overnight posting, that doesn't even include working the auction house during the day.

So if you really want to be like a furniture store going out of business and sell everything then go for it. In my opinion I think that you end up limiting your gold making significantly if you do this right now. Plus there is several items that you should be stocking up for when Cataclysm launches.

Questions for Comments
Are you liquidating everything now? What time frame do you have in your mind before you unload unnecessary items?


Liam said...

I personally will be liquidating the majority of my items, I want to be able to go into the cataclysm with a large chunk of gold and not have to worry about sorting out auctions of old world materials and so on.

I will be concentrating on trying to get realm first 85 so i wont have time to be messing around with auctions for at least a day or 2. I also believe that there will be a lot more profit to be made from the new shiney Cataclysm items, which is basicly the reasons why I will be getting rid of everything I can, with the exeption of Netherweave bolts and a few specific low level enchants [30+sp/15+agi]

Then again, when I think about it, while I am dumping my "stockpiles" I am still buying mats as I need to craft, which I am finding easier to manage now that cataclysm is getting ever closer

xoxo anaalius

Cold said...

YOu should really only be liquidating if

1) You need to sell stuff to make space for your stockpiles.

2) You are in a market that has crashed where it isn't worth the time to cancel/repost/get undercut/relist, etc. because the time investment is better invested elsewhere.

3) Items are losing value over time.

Marxman said...

I'm selling off all of the stuff that I won't be keeping going into Cataclysm, just for the bank space. Mostly my supplies of Eternals, Gems, and Snowfall Inks, but a few other things as well. I really don't want to have to convert a 4th character into a guild bank.

CappedByCata said...

Thanks for the mention, and the response. Even if you don't agree :P

However, I think my real point may have been lost in translation. My real problem is not the Epic gems. They sell, and there is no need to liquidate them in any sense. The problem is the lack of people investing in their own max level Jewelcrafting profession.

With raw and cut gems coming closer and closer in price, people are not as willing to dump 400g a stack on Titanium Powder.

My point is not liquidate your items, as there is still plenty to be made. Infact, I feel that epic gems will be selling steadily up until and even into the expansion.

The profit margin for prospecting Titanium has dried up because people are not willing to invest in that particular trade skill anymore.

So, I hope that at least clarified things :)

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