Guild Wars 2

Every Sunday I convert 1% of my gold into gems for the purposes of slowly – and I do mean slowly – unlocking all the extra bag slots for my characters. This Sunday I noticed a fairly steep jump in gem prices from last week. This is no surprise, as the current Living Story content is introducing a ton of new gold into the economy. And as we all know, adding gold to the economy faster than your gold sinks can remove it causes inflation.

So, I’m wondering if there are any plans to either dial back the new gold (farmers won’t like this) or add new gold sinks (non-farmers won’t like this).

Im still at a loss as to how people are farming large amounts of money from these events.

I dont think champs drop particularly fantastic loot…karma, 5-10 silver, maybe an ori ore. Loot bags, but still. I just dont see how people are farming 10 gold per hour. Even the pavilion farming. I dont see it. I brought my MF toon, with close to 300% MF with buffs. I didnt see nearly the income as some people are boasting. Even if I sold everything I earned.

Maybe Im doing something wrong?

I suspect ‘something’ is coming that the vast majority of players want but will be expensive to get and that will act as big balance on the economy…I have seen dev hints at this…

The ‘something’ is at a guess going to be very, very expensive ascended armour/weapons and possibly new skills/traits that are also going to be expensive to acquire…

Yeah, and if you are unable to farm properly, like me apparently, you are kitten out of luck.

If there is somehting coming that costs an insane amount of gold…That only people who could farm 10 gold / hour can get. Byeeeeee

Im sitting in these events on my necro..wellmancer..TONS of AoE. With boosts and food, Im over 300% MF. In one event, I might be able to amass two or 3 gold at max. How are people getting nearly 10? In some cases more?

cesmode.4257:

Im still at a loss as to how people are farming large amounts of money from these events.

I dont think champs drop particularly fantastic loot…karma, 5-10 silver, maybe an ori ore. Loot bags, but still. I just dont see how people are farming 10 gold per hour. Even the pavilion farming. I dont see it. I brought my MF toon, with close to 300% MF with buffs. I didnt see nearly the income as some people are boasting. Even if I sold everything I earned.

Maybe Im doing something wrong?

For the invasion it all depends on how many champs spawn which depends on group size as i understand it. I did one invasion last night. I used a MF booster only but hit probably 8 champs plus scarlett. With salvaging the rares and using TP for most other items (i dont craft), i came away with about 6 gold.

Since the start of the invasions i have increased my bank by over 50 gold. I dont even want anything that i could buy but i want the LS achievements.

ozmaniandevil.6805:

cesmode.4257:

Im still at a loss as to how people are farming large amounts of money from these events.

I dont think champs drop particularly fantastic loot…karma, 5-10 silver, maybe an ori ore. Loot bags, but still. I just dont see how people are farming 10 gold per hour. Even the pavilion farming. I dont see it. I brought my MF toon, with close to 300% MF with buffs. I didnt see nearly the income as some people are boasting. Even if I sold everything I earned.

Maybe Im doing something wrong?

For the invasion it all depends on how many champs spawn which depends on group size as i understand it. I did one invasion last night. I used a MF booster only but hit probably 8 champs plus scarlett. With salvaging the rares and using TP for most other items (i dont craft), i came away with about 6 gold.

Since the start of the invasions i have increased my bank by over 50 gold. Ibdont even want anything that i could buy but i want the LS achievements.

Still. Im getting T5 mats from bags and stuff. Even if I tag lots of champs.

Fluctuations in the gold/gem exchange rate are not inflation.

The big spike in the exchange rate occurred when A.Net announced the daily sales last week, not when the Queen’s Jubilee patch went live.

You need to re-check your assumptions; what you’re taking for granted as common wisdom is nothing of the sort.

Ensign.2189:

Fluctuations in the gold/gem exchange rate are not inflation.

The big spike in the exchange rate occurred when A.Net announced the daily sales last week, not when the Queen’s Jubilee patch went live.

You need to re-check your assumptions; what you’re taking for granted as common wisdom is nothing of the sort.

So you’re saying the increased rate of new gold being introduced to the economy with an unchanged rate of gold sink won’t lead to inflation?

This is not inflation. Everyone is buying gems to buy the limited time items (eg. everlasting mining pick) that are returning to the gem store. The price increase for gold → gems reflects the increased demand, not inflation.
http://en.wikipedia.org/wiki/Supply_and_demand
I swear 99% of people who post about inflation in the economy have no idea what inflation means u.u
http://en.wikipedia.org/wiki/Inflation

Quick Mouse.7635:

This is not inflation. Everyone is buying gems to buy the limited time items (eg. everlasting mining pick) that are returning to the gem store. The price increase for gold -> gems reflects the increased demand, not inflation.
http://en.wikipedia.org/wiki/Supply_and_demand
I swear 99% of people who post about inflation in the economy have no idea what inflation means u.u
http://en.wikipedia.org/wiki/Inflation

So you’re saying the increased rate of new gold being introduced to the economy with an unchanged rate of gold sink won’t lead to inflation?

Can you provide any evidence that there is an

increased rate of new gold being introduced to the economy

? Last i heard they nerfed cof p1. As far as I can see they swapped 1 farm for another. And also for inflation to happen people need to be spending the gold they are earning. Most people farming these events hard enough to even compare to cof p1 are saving up for big items like http://www.gw2spidy.com/item/29169. <-show me the inflation u speak of.

Compared to most games I have played, gw2 actually has a very stable economy, partly because they employ an economist, http://wiki.guildwars2.com/wiki/John_Smith.

Go play Diablo 3 and you’ll see what inflation is.

Quick Mouse.7635:

Can you provide any evidence that there is an

increased rate of new gold being introduced to the economy

? Last i heard they nerfed cof p1. As far as I can see they swapped 1 farm for another. And also for inflation to happen people need to be spending the gold they are earning. Most people farming these events hard enough to even compare to cof p1 are saving up for big items like http://www.gw2spidy.com/item/29169. <-show me the inflation u speak of.

Compared to most games I have played, gw2 actually has a very stable economy, partly because they employ an economist, http://wiki.guildwars2.com/wiki/John_Smith.

Go play Diablo 3 and you’ll see what inflation is.

Well I did notice
- increase in precursor price (thank goodness I already have mine)
- increase (not decrease) in T6 price. I’m assuming everyone is trying to make a legendary at the same time as me
- increase in price of yellows
- increase in gem prices (birthday sale might be at fault here)
- surprisingly a decrease in exotic price

There, however is more money floating in the economy (dungeon money change, champion loot change, giant events where you can farm (pavilion and invasions), on top of that there has not been enough time to clear the money made by abusing gauntlet before it was nerfed plus old ticket linked weapons are now no longer account bound meaning that some people got an influx of money like that.
There is inflation. A slight one. I would not worry about it, however price of T6 skyrocketing before the release of T7 might be a bit bad. Though it’s probably caused (like I said) by everyone getting enough money to start working on their legendaries and all trying to get the required T6 at the same time.

If anything more gold is being removed from the economy due to cheap players converting gold to gems instead of supporting Anet with a gem purchase every once in awhile.

Araziel.7201:

Looks like Chicken Little is here showing his kitten again. If anything more gold is being removed from the economy due to cheap players like yourself converting gold to gems instead of supporting Anet with a gem purchase every once in awhile.

This is just another disguised whine post from a player that lost money on the trading post.

A. The my gold to gem conversion is purely for an item I would never pay money for. I purchase gems with cash for things like character slots, etc.
B. I’ve never played the Trading Post and I never will.
C. You’re making a lot of baseless accusations, and you’re doing so in a childish, petulant manner.

12/12 months and still waiting for the suff.

It’s on John Smiths radar, as he sits in his office getting paid to play windows solitaire for eight hours a day…

darkace.8925:

So you’re saying the increased rate of new gold being introduced to the economy with an unchanged rate of gold sink won’t lead to inflation?

Not necessarily, no.

The assumption about an unchanged rate of gold sink is inaccurate. The assumption about an increase in gold generation is not obviously true. You’re ignoring the entire goods side of the equation.

darkace.8925:

Every Sunday I convert 1% of my gold into gems for the purposes of slowly – and I do mean slowly – unlocking all the extra bag slots for my characters. This Sunday I noticed a fairly steep jump in gem prices from last week. This is no surprise, as the current Living Story content is introducing a ton of new gold into the economy. And as we all know, adding gold to the economy faster than your gold sinks can remove it causes inflation.

So, I’m wondering if there are any plans to either dial back the new gold (farmers won’t like this) or add new gold sinks (non-farmers won’t like this).

well, a gold sink like increased prices for the gems perhaps? Or simply a gold sink that will not affect you, but someone else? :P

There was absurd amounts of gold coming from the queen’s gauntlet. There is very obvious inflation, but all the hundreds of full time economists that apparently play this game will viciously argue and tell you that you are dumb because if they attempt to fix the problem they will suffer for it.

Go back to your hovel peasant and enjoy your 10 copper!

Gem prices has shot up due to the 10 day sale of previous limited time items. Over a fifty five percent (honestly how is that number gets kittened) increase in the last month, over 30% in the last week. As long as they have items players want and are willing to pay gold vs cash for, gem prices will increase. Once the sale is over expect the rate to edge downward because on the bright side is Gems to Gold is now 3g79s per 100 gems and is going up at the same rate as well.

Also these events and reward changes are shifting both supply and demand on a number of goods and decreases in supply and/or increases in demand will affect prices independently of inflation. Our activities in the game determine the supply and if we are herded into different activities, not doing what we normally use to do, then supply gets messed up and prices increase.

Remember the collapse of copper ore prices when the F&F dungeon came out? Or when Ecto prices shot up right after they allowed them to be salvaged in T6 dust. That had nothing to do with inflation and everything to do with shifts in supply and demand.

Inflation is the rise in the Price Level (usually consumer price index-CPI) of an economy, and the devaluation of currency. The reason why things like ectoplasm are raising in price is because the influx of gold is allowing more people to spend their money on ecto/T6/Lodes and whatnot. Eventually prices will fall back down as the supply replenishes and the demand returns to normal levels (ie everyone this month was farming like mad to complete legendaries). The gold increase merely increased the money supply which is not inflation per se, but in real world economies is often regulated by an interest rate to make sure that output remains fairly equal to potential output. Inflation typically occurs when the cross between agreggate supply and demand (output) is greater than potential output, when the economy is in equilibrium. At any rate these prices issues are merely shifts in individual all though large markets, and will return provided people return to the old slew of mat-generating activities.

Quick Mouse.7635:

This is not inflation. Everyone is buying gems to buy the limited time items (eg. everlasting mining pick) that are returning to the gem store. The price increase for gold -> gems reflects the increased demand, not inflation.
http://en.wikipedia.org/wiki/Supply_and_demand
I swear 99% of people who post about inflation in the economy have no idea what inflation means u.u
http://en.wikipedia.org/wiki/Inflation

Inflation is a problem when it affects staple commodities unfairly for the disadvantaged, IE: when any kind of large disparity in incomes is the standard. Though it’s also a problem for anyone who’s trying to keep their “savings” in a single currency. IE: their 8 months of hard work is now only worth 1 month of a Champ Farmer’s effort… (which is only worth 1 hour of a proficient Market flash flipper’s efforts).

And yes, staple commodities have been soaring lately and I’m not talking about ectos. Ectos & Gems have actually been undervalued for a very long time according to my observations. Staple commodities would be things like … Carrots, Chilis, Rosemary, Garlic, Cotton, Mid-level Woods, Gold Ore, Silver Doubloons, Lemongrass, Vials of Blood, Rare Greatswords, Ori ore, etc… Luxuries like precursors or other high price items aren’t the thing you look at when figuring out whether the market is beginning to exclude new people from the game. But these other things ARE, and they had been trending very irresponsibly ever since COF became the gold standard meta.

Fused skins and Flame and Frost dyes are coming. That’s all.

I suspect that when this info was leaked (on the official website, but it was quickly removed), gem prices went poof. All the additional coin that has been pumped in the economy through Gauntlet farming only made it a bit worse, but probably not much.

Ensign.2189:

Fluctuations in the gold/gem exchange rate are not inflation.

The big spike in the exchange rate occurred when A.Net announced the daily sales last week, not when the Queen’s Jubilee patch went live.

Quick Mouse.7635:

This is not inflation. Everyone is buying gems to buy the limited time items (eg. everlasting mining pick) that are returning to the gem store. The price increase for gold -> gems reflects the increased demand, not inflation.

Quick Mouse.7635:

Go play Diablo 3 and you’ll see what inflation is.

As it’s been said, it’s not inflation. On this point Anet has done an excellent job of shooting several birds. If you want to see what happened to diablo 3, here’s an article:

http://www.zerohedge.com/news/2013-05-21/diablo-3-case-virtual-hyperinflation

The article is missing it’s format/pictures so it may seem a bit long winded.