for other ideas on the glyph market and other general tips see the free Croda's Inscription Gold Guide
I aim to post every two days one this blog. However, i find that my weekend posts generally get less attention (i suspect most people read posts during the week and therefore land on my homepage and read the post i did at the weekend at the same time). Therefore, for the weekend post i plan to post on how the World of Warcraft economy relates to the real world or theoretical concepts for the World of Warcraft economy. Ironically, it is this subject matter which causes the most email traffic!
Inflation is a measure of the price rise of a basket of
goods. For our purposes in World of
Warcraft inflation is the price rise of new raw materials and old raw materials
which leads to a price rise in crafted items, and the higher costs of NPC
items, repairs etc . . . . essentially to us it is the rise in cost of living
in the World of Warcraft. And typically
inflation hits with new content where new raw materials and NPC items are more
expensive than in the last content.
For normal players this is compensated by higher gold drops
from mobs, bosses and quest awards which leads to more money being in the
economy. In many ways, Blizzard are
reacting to their own created inflation by paying the player base higher gold
wages – which is how the inflation mechanism can work in the real world. Higher costs of living see workers demand
higher wages to compensate.
Where it affects all players, but particularly those with
large gold balances, is that these gold balances are able to buy less of the
new raw materials and new NPC items than they could have bought the equivalent
under the old content. In other words,
the buying power of our gold falls as we move into the new content. Things are just more expensive but our gold
level is the same as it was the night before the new content.
For example, I sit there with 1.5m gold. What you don’t see is the raw materials and
crafted goods in my inventory as well.
Hence, i don’t need to spend any of that 1.5m to enhance
my gold making process – it is in effect dead gold. It is this 1.5m gold that is hurt by
My raw materials and crafted items though will go up in
value and so are in part inflation protected.
Compare to someone with say 10,000 gold and the rest in
raw materials and crafted items – they are less hurt but nonetheless that
10,000 gold still loses some purchasing power in the move from old to the new
content. Their raw materials and crafted
items, which will form a larger part of their wealth, will rise in value as the
new content comes in.
The question therefore is how to protect that 1.5m gold
In the real world that surplus gold could be invested to
generate a return – the higher the target return then the higher the risk
required to achieve it. That is not an
option in World of Warcraft.
Therefore the route many take is to buy raw material
items and NPC items that they believe will rise in value in the new content and
then sell those items once the new content arrives. The “profit” made is in fact merely inflation
profits and they are merely holding their own with the inflation – but at least
they have inflation protected their gold.
Not a bad idea – as long as you select the items to buy that will go up
Personally, i increase my raw materials to meet the
increased demand for glyphs but otherwise i just take it on the chin and live
with it. The additional amount of gold i
need to spend on the new raw materials will be compensated by the higher prices
of the new crafted items.