gmedina
11-07-2007, 06:45
Now before i get hit let me say im not supporting selling gold, i just had a thought and figured i would ask since it has been driving me crazy trying to figure it out.
Now common knowledge is that if ppl are selling gold it will lead to inflation of prices as a person can go out a buy gold and pay whatever they want for the item. This makes a certain amount of sense, not saying i agree but let's just say i do for arguments sake. So this raises the question as how the gold sellers get the gold, well the answer is the farm for it. While in the process of farming gold they will obviously be getting drops, blue, green, purple, etc so what do they do with these drops? Obviously since they want the gold to sell they will AH them to get gold to sell. This is increasing the supply of items and drops in the AH. Now we all know that increase supply will lower the price.
So here it is, the question of the day. Which is the greater force, the inflationary pressure of selling gold? Or the Deflationary pressure of increased supply in the AH? Or do they wash each other out and basically do nothing?
As i write this another thought pops up, if it is option 1: then banning gold sellers is good, if option 2: would think gold sellers would be good thing no? and lastly if option 3: they don't affect anything so why not leave em alone?
What are your thoughts?
Now common knowledge is that if ppl are selling gold it will lead to inflation of prices as a person can go out a buy gold and pay whatever they want for the item. This makes a certain amount of sense, not saying i agree but let's just say i do for arguments sake. So this raises the question as how the gold sellers get the gold, well the answer is the farm for it. While in the process of farming gold they will obviously be getting drops, blue, green, purple, etc so what do they do with these drops? Obviously since they want the gold to sell they will AH them to get gold to sell. This is increasing the supply of items and drops in the AH. Now we all know that increase supply will lower the price.
So here it is, the question of the day. Which is the greater force, the inflationary pressure of selling gold? Or the Deflationary pressure of increased supply in the AH? Or do they wash each other out and basically do nothing?
As i write this another thought pops up, if it is option 1: then banning gold sellers is good, if option 2: would think gold sellers would be good thing no? and lastly if option 3: they don't affect anything so why not leave em alone?
What are your thoughts?