A new post on A short excerpt provides a useful Econ 101 description of how and why the price of gold can rise or fall based on supply and demand. If you’re looking for more insight into how values in the economy, fueled by the RMAH will ebb and flow, this should do the trick. There are even handy color-coded charts! :
Every hour, the following amount of gold is listed for sale:
– 1,000,000,000 (1 billion) gold on market for the market price of $2.00. 99% of transactions will settle at this price.
– 1,000,000 (1 million) gold on market for slightly cheaper than average price, say $1.90. These will virtually appear for just seconds before selling. The people selling lower than market are doing it because they need the money NOW
– 100,000,000 (100 million) gold will be on sale for higher than market value, say $2.05. These will only sell when the above amounts clear out, in other words when demand overtakes supply @ the average price level. IMPORTANT: This is how the market value of gold increases!
– 10,000,000 (10 million) gold will be on sale for way above market value, say $2.50. These are usually people who are in no rush to sell gold, are gambling that the price of gold will increase. A lot of people may do this in anticipation of a price increase for gold due to a certain event.
Now, the thing that determines how the above figures play out and determine the price of gold is supply and demand. So think of it as a sliding scale of tiers. Read the below scenarios to illustrate this point:
Remember that gold buying and selling is almost completely automated in the Diablo 3 Auction House. You select how many thousands you want to buy, the AH interface shows you the market price, and you click yes or no. That’s it; you never interact with a human gold seller or haggle over the price or quantity. It’s so quick and easy you’ll soon forget that you’re paying real money, or at least the Bobby Bucks™ equivalent.