Are people dumb or just trolls? Either way I'm probably wasting my time...But whatever...I can't bot so I figure I'll waste time on the forums...
The price floor on gold is totally stupid! a total economic abomination!
here is a quick economics lesson for the less informed:
price floor => surplus in legit market, no one can sell anything => black market flourishes
(when the true value of the commodity in question falls below the price floor)
DO I actually need to state that this is exactly what is happening? The proof is right in this topic... Numerous people trying to get rid of gold through the RMAH, only to find out that most people would rather resort to using the black market, where pay a small fraction of what legitimate gold sellers are being forced to charge. This forces people who might prefer to be legitimate gold sellers to resort to the black market as well. And obviously, the black market for gold exists because of the price floor. When the actual value of gold sinks below the arbitrary price floor, all of a sudden the black market becomes far more profitable than the legal market, and few people resort to legitimate channels. Or in other words - hardly any gold will sell on the RMAH because of the price floor. Pretty obvious, yet people seem to think that a price floor is a good idea?
lol @ anyone who thinks they are being made better off by this kind of intervention in the market..
I see people worrying that without the price floor gold will sell for $0.00. And there's this presumption present within these posts, that this would be terrible, and this terrible outcome is being prevented by the price floor. LOL, are people really this ignorant?
If gold was selling for 0 without a price floor, all that means is that next to no gold would sell if there was still a price floor. Why would anyone pay for something that had no value? LoL, they could get it for free by definition - it's worthless. And what's the point of trying to sell something that is worthless, for real $? LoL. This argument about gold value depreciating to nothing is just dumb. If gold was worthless, why on earth would a price floor cause people to pay for something that was worthless? It's just so stupid.
It's almost like people think that if blizzard doesn't allow the RMAH to price gold under a certain value, that gold retains that minimum value. LoL. Welcome to reality - if the value of gold is 0, a price floor is not going to change that, nor will a price floor prevent depreciation, another notion that seems to be being peddled in this topic. It's fortunate that such ignorance is as amusing as it is irritating, otherwise I would just be irritated.
The fact of the matter is that the value of gold is what it is largely because of reasons that have nothing to do with the silly price floor in the RMAH and the silly price floor only forces people to resort to third party websites when the real value of gold sinks below the floor.
ya anyway.. captain obvious out
This is a really good post, but the fact of the matter is that you are applying a PERFECT market situation to diablo 3 gold, and it is not the case and probably never will be.
You can buy chinese gold for a hugely lower amount than officlal RMAH gold.
Right. Problem is: it is not legal, you could (tecnically) get banned for doing so. Therefore, people who is willing to buy gold, have to choose between getting a bigger amount of gold for their money or risking a ban. In a similar market, lots of people have been banned in Wow for buying or selling gold to chinese sites.
And the rational evidence of it is, there is a small amount of gold still selling at price floor, even in EU with the economic situation we have.
Your thoughts about black marketing are pretty interesting, but still suffer the same failure: black market is black, that's why it will always be different than legal market. Making a real life extrapolation, you could make a fucking lot of money buying weapons at the usa and selling them abroad, for sure. Problem is, it is illegal. You could lose it all for doing so, are you willing to take the risk?
Obviously I'm not trying to compare botters to weapon dealers, but as both activities are not allowed, there's a certain similarity.
All in all, there is a OFFICIAL price of the gold, and a BLACK MARKET price of the gold. You are stating that both are the same and no one will buy at the official one if the black market one is lower. That has been proven wrong before , and I can't agree with it being wrong stronger than what I do. Derico's post a few posts above me have a few clues that support this.
About the real price of gold being the gem trading one, that's harder to deny, except for one thing: Who is actually buying the RMAH gold? In my belief, only people starting at the game and wanting a headstart would. This people probably won't know about gem trading, therefore, they'll choose the "right" way to buy gold using the RMAH. If there is someone who wants to improve their items and need gold for that, and would be willing to go black market for it, think twice....
wouldn't it be more profitable to buy bots with the real money they want to spend, and wait for them to deliver a bigger amount than just buying the gold? They are supposed to know at least a little bit about the game, and they probably know botting is not being banned at the time.
Just my two cents, I don't have any background in economy other than basic(non related) university studies.
EDIT: typos sorry.
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It needs about 30 seconds and all your gold is ready...
