Rising Gold Prices

Caps result in shortages. The climb in gold prices filters out those unwilling to pay the higher price. When gold prices go up as they have recently, it's because demand has increased (more people wanting to buy gold). The supply of gold is the same however, so the market responds by increasing the price. Those unwilling to pay the higher price drop out. Eventually enough buyers drop out that the number of buyers equals the number of sellers, at a higher price point.

If you capped the price, then in the current situation there would be more buyers than sellers, and the top half of the gold sales window on the Auctioneer would be empty. People would be filling up the bottom half with bids at the maximum (capped) amount. And they'd be complaining that they're so far down the queue that it'll be days before they get any gold.

Not true. The sellers can just keep the high prices until people start to pay them anyway.

If you could get everyone to refuse to pay more than 100kea for gold then the price would lower to 100kea.

Unfortunately it is nearly impossible to get everyone to do that. As long as someone buys gold at their astronomically high prices then they will stay high.

Aadi - Lost City wrote: »

We're not that organized.

We need a union

They only final solution to all our problems is.............hope for the best and if that doesn't work....quit.

Miugre - Heavens Tear wrote: »

What organizing would do, however, is make sure the GMs (and therefore, powers higher than them who can make decisions) stay aware of the problem, and make sure that they understand that the problem will NOT go away with a single JJ event.

Regular coin draining events WOULD work. The problem with JJ aside from the frequency is that he's not draining much coin this time. What he is draining, is gold and that sadly simply increases the gold price.

Draining coin would be simple if they really intended to do it. If Jone's was really to drain coin from the economy set him to ONLY accept 50,000 or 100,000 coins. The coin is not going to another player but instead a NPC. This would effectively take that much coin out of circulation.

As it stands, all Jones is doing is inflating gold prices while he OFFERS a weak attempt to remove con from circulation. It boils down to simple common sense. Why would you pay 100,000 coins for one shot, when you can pay, say dolls are 60,000 each, 120,000 for 2 chances? The Kin will repeat himself. REMOVE THE OPTION TO USE DOLLS. That alone will take away a **** ton of coin from the game. We ALL know there will be those who will obsessively spend and those with the millions are the ones who buy the gold at insane prices. If they don't have the coin they'll have to be more conservative with their coins, thus prices of gold will fall faster.

Solandri - Heavens Tear wrote: »

The climb in gold prices filters out those unwilling to pay the higher price. When gold prices go up as they have recently, it's because demand has increased (more people wanting to buy gold).

Not really. prices goes up because in average there is more gold per players on the server than before. Main problem is that this gold is not evenly distributed among players.

You have a few very rich, some very poor, and the bulk of the players falling in-between.

The problem is that as price of gold rises, more and moe players cannot afford to buy it. In the long run, those players stop playing. Quitting players is not good for PWI, even if they are not zhen buyers.

Fireblood - Harshlands wrote: »

They only final solution to all our problems is.............hope for the best and if that doesn't work....quit.

Yes, I'm going to be doing just that along with my whole lot of Guildmates who decided to. We are going to give it a week or two and wait for Gold prices to drop, if not well, there are many other fun things out there. b:bye

Brael - Dreamweaver wrote: »

The problem with JJ aside from the frequency is that he's not draining much coin this time.

How can you measure this?

Perfect world belives in an player driven market. <---or something like that I read somewhere or saw a video or w.e so a cap not gona happen.

truekossy wrote: »

Which decreases both the amount of people who buy gold and the amount of gold received (even if the same people continued buying gold) which, in turn, lowers the supply of gold compared to the demand, which drives the price of gold higher, which (if that idea was actually implemented) would cause the cycle to loop all over again until gold is capped at an amount very few, if any, would pay ($300 for a mount, anyone?) which drains how much PWE profits from this game, which leads to it getting shut down due to insufficient revenue being generated.

Congratulations. You've just thought of a way to kill the game. b:cute

Actually no. It will just force the sellers to lower the ingame price, keeping things good for all.

ydodo wrote: »

lol at how pervasive communism ideologies are even in the West. Whenever the free market doesn't suit their interest a ton of them would cry out for price control and socialism and what not.

Talking about greed I see a ton of freeloaders crying out against 'greed' of those who pay money for the game. How ironic!

While the clueless gms talking about using Jones to 'drain coins' from economy, ppl are consuming the oracle books and getting more coins into the market.

The only legitimate way to control inflation is to stop massive printing. Always true in real life and true in PW too as it is a good simulation of real world economy. For example lowering income of land owners, replacing coin reward with item reward etc.

Keep whining about gold price while smart traders buy them up at whatever market price to maximize their profit.

Have you ever stopped to think that pure free-market ideals aren't an absolute cure-all for everything? We get enough of that boneheaded theory in real life. And fyi, the only two options are not "free-market idealism" and "communism." Think outside the box.

Cholla - Harshlands wrote: »

How can you measure this?

You don't have to measure it, it's simple logic. As long as gold is less than about 300k, people will buy gold and use angels instead of paying 100k per pack. Therefore the coins don't get drained, they just go to the same greedy people who are already selling gold too high.

I think they key of the overpirced gold is not gold itself, but the COINS that exist on each server.

Golds are ok, they are another tradeable item on the game just like armor, charms and all the items on the game.

Coins, on the other hand, are the key of PW economy and the flux of them controls the prices of all non NPCs sellers.

So, to maintain a decent prize of gold (and all other items) on the servers, they need to do some of following:

1.- Maintain a steady amount of it on the game:
Every sale takes a lot of gold out of the game but not coins. This means people will have more coins to afford more gold, but there will be not enough gold to all of them, so they need to race for each piece of gold by be willing to pay more coins than the other player. And since they have more coins, they can do it.
One way to keep a steady amount of gold on each server could be a Zen promo before/after a big sale. That way the amount of gold will increase, making prices go down.

2.- Lower the amount of coins that exist on the server.
I think this is the key of all the problem. With less coins of the server no one will be able to afford those skyrocketed prices, forcing sellers to either lower prices or trade them for boutique items that can be easily sold.
This can be done by many ways: as someone said before, changing some reward for items instead of coins, reducing the amount of coins each territory gives, allowing more NPCs to take out coing from the game.

I think the most important way to make coins in game should be grinding and questing. Any other way, such the cube of fate, should be like going into a casino, having more chances to loose coins rather givin you more (this doesn't means they could enchange some coin rewards for item rewards)

XXCritterXx - Dreamweaver wrote: »

1: Cap the price you can sell gold
2: If coin players have to pay 198k in game for 1 gold then cash players should pay $1.98 US dollars to buy 1 gold. Keep cash and coin players in scale with each other. That I think is fair.

1. Like I said a couple pages back, caps result in shortages.

When the supply of gold equals the demand, the price is stable. If the demand exceeds supply, the prices goes up in response. This causes demand to diminish - some players are unwilling to pay the higher price so they drop out of the bidding. When demand once again equals supply, then the price stabilizes again at this higher price point.

If you cap the price of gold, then any time prices would have increased above the cap, demand will exceed supply. The top half of the gold sales at the auctioneer will be empty. If gold were capped at 200k, everyone will be placing bids for gold at 200k, and the people who placed their bids late will complain that they have to wait days or even weeks before they'll see any gold.

You see this happen with subsidized and rent controlled housing. You usually have to get on a waiting list to get into those apartments.

2. As has been explained, this creates a positive feedback loop. Demand for gold drives prices up, which due to gold prices also going up in RL $$ causes a drop in supply (fewer people creating gold with $$). The drop in supply drives up prices even more, causing a further drop in supply. And so on until nobody can afford to buy gold and PWI goes bankrupt.

And why in the world do you think it's fair that people who are playing for free should be able to force people who pay $$ for the game to pay more? If you think that's fair, wouldn't it also be fair for the people who pay for the game to increase the expenses of the free players, and force them to also pay $$ to play?

The market mechanism they've implemented for exchanging gold for coin insures a decent balance between free players and pay players. If the ratio goes out of whack so there are too many free players, the price of gold goes up thus encouraging some of those free players to become pay players. If there are too many pay players, the price of gold goes down and some of the pay players figure they can play for free and buy gold with coin instead of spending $$.