The Cost of Buying Low and Selling High

Posted by Markco at 8:00 AM

Have you ever wondered what will happen to a market if every day you are purchasing at X price and reselling at a higher price?

Look at eternal earths on your server. Many, many players know that you can make cheap items for disenchanting through the clever use of eternal earths, and thus these players are purchasing the earths if they are worth less than 2 infinite dusts. What happens to the price when this happens? Eventually, the price of earths rises slowly but surely to a value above being worth it to disenchant.

This happens in cycles, as people stop buying the earths because they can no longer disenchant for profit and the price will eventually drop back down to a level that enchanters will purchase at again.

Do you already see how this cycle could be valuable to you? Let's say you purchase 100 eternal earths for the purpose of disenchanting. You turn 60 of them into stoneguard bands and then disenchant. The other 40 you hold on to in your bank while you wait for the price of earths to rise. A week or two later the price of earths has gone from 5 gold to 10 gold per eternal. You post your 40 slowly in stacks of 1 and only repost when the couple you have up on the auction house get bought out. Instead of making 6 gold on average per two earths you are making 10 gold.

Infinite prices dropping can also cause earths to drop, this creates a great buying oppurtunity as less people will buy the earths and cause a surplus. Paying attention to the way markets react to each other is essential to being a good auctioneer.

For more info on farming crystallized earth, you should check my farming videos:

http://justmytwocopper.blogspot.com/2009/01/farming-crystallized-earth-in-zimrhuk.html
http://justmytwocopper.blogspot.com/2009/05/icebound-revenants.html
http://justmytwocopper.blogspot.com/2009/03/pleasant-farming-spot.html