I know how the system works. The problem is that it has only ever risen. As they keep putting interesting things in the gem store, the demand will only keep rising for gems.
This is false.
If you look at the Gem Exchanges since the beginning of May, the ratio has remained remarkably stable. And between the beginning of May and now, many interesting things have been introduced. And yet, ratios have remained quite stable. Most likely we’re reaching an equilibrium, or a value very close to it.
And again, as I’ve explained, the mechanism in which an increase in Gold/Gem ratio encourages activity which will induce change in the other direction (Players exchange Gem -> Gold) means that an continuous increase is simply impossible.
Many players can’t afford to spend real cash on gems so more gold gets traded for gems than vice-versa. As a result the ratio is in runaway inflation. Those that don’t hardcore farm CoF P1 or engage in the highly unethical (IMHO) practice of market flipping cannot afford gems at all.
You’re making several assumptions here.
1. That many players can’t afford to spend real cash on gems. You don’t know this. In fact, I imagine the opposite is true. How do you explain the huge success of the gem store?
2. That people that don’t farm CoF P1/market flipping cannot afford gems. You also don’t know this, and this is a very generalized statement which is very untrue for many individuals (me, for example.)
As your assumptions are based off on very shaky (non-existent) evidence, your point remains unconvincing.
That is not reaching an equilibrium. That is reaching a point where the players says ‘kitten it’ and leave due to the economy being that badly broken.
An economy, by definition, is an fluid exchange of goods. Basically, it’s the production, distribution, and consumption of goods. The flow of goods is what makes for a healthy economy. When that stops, the economy is not healthy because people aren’t producing/selling/buying/consuming goods.
And in GW2, there are billions of items being produced/sold/consumed. From the amount of kites people were playing around with, I can safely assume that plenty of gems get bought/sold as well. There is really no indication that the player base as a whole views these gem prices to be “high” because from all indications (NCSoft earning reports, the sheer amount of people sporting infinite gathering tools/quaggan backpacks/kites, etc.), gems are still very much being sold/bought.
Just because in your personal opinion, gem prices are seemingly “high” does not make the GW2 economy “broken.” Far from it.