And they won’t confirm anything. They will just tell you to show them proof that it isn’t based on supply & demand. But of course they hold all the proof and won’t share it. In court, evidence has to be shared. We can hope for them to be fully transparent but…
They said not so long ago that if you get gems with ingame gold, the rate goes up.
If some one purchuase gems with real life money, the rate goes down.
The question wasn’t about whether transactions affect the rate to any minimal or major degree. The question was “Does it PURELY depend on supply and demand?”
They said not so long ago that if you get gems with ingame gold, the rate goes up.
If some one purchuase gems with real life money, the rate goes down.
As easy as that.
So Norax,
You mean that the presently raising gems value in gold means more and more people are buying gems with ingame gold and not buying as many gems with real cash?
I noticed that the average price for 100 gems during last week raised from 70 silver to 76 silver (Blacktide server).
Thank you and best regards,
Red
“Blackadder: If you want something done properly, kill Baldrick before you start.”
Just an insight, I thought i’d invest in gems and bought 20g worth of gems, but when I went to see the value of them gems at the same transfer rate they were only worth 14g 76s. so wasnt a good way to make gold. I’m not convinced its based on supply and demand and think its totally controlled by Anet.
“Hey I swung a sword, Hey Hey I swung a sword again,”
“After several hours I’m still swinging this sword with1 lodestone drop”
Just an insight, I thought i’d invest in gems and bought 20g worth of gems, but when I went to see the value of them gems at the same transfer rate they were only worth 14g 76s. so wasnt a good way to make gold. I’m not convinced its based on supply and demand and think its totally controlled by Anet.
Hello Cod Eye,
Thats is exactly what I am trying to figure out. These rate fluctuations between gems x gold seem a bit awkward to me.
It is why I want to understand the model.
Thank you and best regards,
Red
“Blackadder: If you want something done properly, kill Baldrick before you start.”
From my analysis to the market behaviour I am feeling that the gem raising value is a lure for players to buy them with real cash, trade them for gold and then get all the gear/items they need from TP and do not have time to farm for (I noticed in the last 3/4 weeks a sharp reduction in drops while doing Orr with MF full gear. No more exotics – zero! – and the rares drop rate was reduced like 600% to 800%).
In my case, opposite to the past, my daily 3 hours of Orr farming can not support anymore my gold needs to fund WvWvW and gear for my main and alts.
Also, the drop rate in Lost Shores is abysmal.
The slow increase in gems value does not over inflate (in the short term) the prices of gear/items sold by players through TP, so in the end the amount of gems sold against real cash increases a lot.
“Blackadder: If you want something done properly, kill Baldrick before you start.”
Its not a currency exchange. Its based on a algorithm that tries to determine supply and demand. All trading is done through ANET. If it was purely freemarket, I’d be able to set the price of gems I want to sell.
There’s a few threads dealing with this already, so I’ll try to be brief.
Firstly, there are two rates not just the one rate. There is a gold → gem rate and a gem → gold rate, and there is roughly a 30% difference between the two. No confirmed reason for this difference, but it may be there to act as a gold sink and also to discourage short-term speculation in gems.
The rate does not just steadily increase, http://www.gw2spidy.com/gem shows the fluctuations in the exchange rates, but overall the rate has been trending upward since launch.
It has been confirmed that the exchange has a supply of gems and gold, and that the rate changes based on the demand.
There seems to be some confusion:
The currency exchange has a supply of Gems and Gold.
If players are converting Gold to Gems, then the Amount of Gold player will receive for their gems goes up.
If players are converting Gems to Gold, then the amount of Gems players receive for Gold goes up.
The exchange rate changes based on the scarcity of each supply. You cannot inflate it, it’s an exchange rate. As players purchase in one direction, it entices purchases in the other direction.
It seems to me that the 30% difference kind of induces players to buy gems with real cash to get gold or items from the shop instead of getting gems with in-game gold.
I could understand a 10% difference but 30% seems a bit excessive.
Thank you and best regards,
Red
“Blackadder: If you want something done properly, kill Baldrick before you start.”
A 10% margin would be enough to avoid short term speculation. Anyway, in the long term I think its a legitimate investment of your hard earned gold to buy gems and then trade them much later for a bit of revenue.
Thanks and best regards,
Red
“Blackadder: If you want something done properly, kill Baldrick before you start.”
It’s fine as it is.
10% would just make the average joes a few extra bob and the intelligent nobs like me rich. Having recently come into some gold (i play casually) i bought up 1k gems when i believed them to be relatively cheap thinking they would go up with lost shores and, even if they dropped like a rock, id just use the gems to upgr which i had to anyway. I noticed immediately that u couldn’t imediately exchange straight back for the same amount of gold and this made perfect sense.
Gems have now gone up almost 100% from when I bought – and the price i bought them for has only just equalized to that which i am able to sell them. Which MEANS i should soon be able to sell them off for a very small profit (in 2-3 days) unless of course it starts dropping. All of this MEANS you need to be vigilant and rub those two braincells of yours together a little harder to make a profit. Don’t expect to spend 10g. Wait. And make 20g. Be realistic. But you can make a profit.
There’s a few threads dealing with this already, so I’ll try to be brief.
Firstly, there are two rates not just the one rate. There is a gold -> gem rate and a gem -> gold rate, and there is roughly a 30% difference between the two. No confirmed reason for this difference, but it may be there to act as a gold sink and also to discourage short-term speculation in gems.
The rate does not just steadily increase, http://www.gw2spidy.com/gem shows the fluctuations in the exchange rates, but overall the rate has been trending upward since launch.
It has been confirmed that the exchange has a supply of gems and gold, and that the rate changes based on the demand.
There seems to be some confusion:
The currency exchange has a supply of Gems and Gold.
If players are converting Gold to Gems, then the Amount of Gold player will receive for their gems goes up.
If players are converting Gems to Gold, then the amount of Gems players receive for Gold goes up.
The exchange rate changes based on the scarcity of each supply. You cannot inflate it, it’s an exchange rate. As players purchase in one direction, it entices purchases in the other direction.
I posted about this in another thread, and am posting it again here. I think I saw a dev post about this a week or two ago, but I can’t seem to find it. Anyway, here’s my attempt at explaining the 30% gap:
When you exchange gold for gems, you are “selling” your gold and paying a 15% selling fee. Similarly, when you exchange gems for gold, you are “selling” your gems for gold and paying the 15% fee as well, which is what causes the gap between the two exchange rate prices.
As I understand it, in normal Trading Post transactions, the goods are bought directly from another player. In the currency exchange, however, the gems and gold are “sold” to a server that acts as a third party. Since the server acts as the buyer in all transactions, and the player acts as the seller, the player pays the 15% fee on each conversion, regardless of the direction (gold to gems or gems to gold).
