Ruby gem bubble?

Posted by Member ocy13 on 5/15/13 09:27 AM #1
Posts: 7

Flawless Square Ruby is now selling for 27k at the time of posting. FS Emerald 10k, FS Topaz 18k, FS Amethyst 13k.

The prices for the rest of the higher grade ruby gem also going up.

What is going on? What speculation is driving these prices up? Especially ruby.
Posted by Member eleganthobo on 5/15/13 10:06 AM #2
Posts: 125

My speculation is that new people and returning players are driving up the price of rubies because 1) check out the min/max modifier and 2) getting the +xp% bonus for leveling.

Markets are often irrational, so who knows.
Posted by Member nuhertz on 5/15/13 10:52 AM #3
Posts: 512

I needed some rubies for alts to take advantage of the XP bonus in group play. At 27k each it still saved me 200k to craft Radiant Stars from Flawless Squares instead of buying them on the AH, and the breakeven if I sold the ones I crafted was only 20k more than the current market price.

With the auto crafting, it's easy to buy mats, and before you turn in for the night start the batch processing.
Posted by Member hdvision on 5/15/13 11:31 AM #4
Posts: 83

Leoric signets also jumped in price. So looks like people want to max out their XP gains.
Posted by Member ninjax on 5/15/13 01:42 PM #5
Posts: 600

Yeh leorics were down to about 10m at one point... now 50M plus. However value of gold has dropped also.
Posted by Member Khan on 5/15/13 06:23 PM #6
Posts: 1195

Posted by ninjax at 05/15/2013 01:42 PM

However value of gold has dropped also.


This right here is the reason for a rise in prices. Standard inflation. Gold costs less so therefore there will be more gold in circulation. More gold in circulation equates to higher cost of items as the value of gold has decreased in relation to the items.
Posted by Member Baldy on 5/15/13 07:31 PM #7
Posts: 706

Posted by Khan at 05/15/2013 06:23 PM

Posted by ninjax at 05/15/2013 01:42 PM

However value of gold has dropped also.


This right here is the reason for a rise in prices. Standard inflation. Gold costs less so therefore there will be more gold in circulation. More gold in circulation equates to higher cost of items as the value of gold has decreased in relation to the items.


Having said that, all those 2 bil items are actually worth more now than what they are listed. Of course, I am only talking about the 2 bil items that are actually WORTH that much, or more, not what some yahoo listed what HE/SHE thinks is worth that amount.
Posted by Member Baldy on 5/15/13 08:09 PM #8
Posts: 706

Oh and another thing, does anyone else think that Blizz will raise the max sale ceiling over the 2 billion gold mark per item?
Posted by Member ecocd on 5/15/13 09:12 PM #9
Posts: 1059

@Baldy Probably. Given that Gold is now worth 40 times less than the original floor they put on it, I would think that cap will have to come off sooner or later as only players with cash can get the best weapons now. Since not every player even can use the RMAH, they can't pretend to care about the player experience without increasing the 2 billion cap.
Posted by Member shniggies on 5/16/13 12:10 AM #10
Posts: 909

question... why is my gold worth so little now? am i reading this right? 39c for 10m instead of 1m?
Posted by Admin DHAdmin on 5/16/13 12:48 AM #11
Posts: 938

Posted by shniggies at 05/16/2013 12:10 AM

question... why is my gold worth so little now? am i reading this right? 39c for 10m instead of 1m?


Correct, Blizzard changed the stack size from 1m to 10m.
Posted by Member shniggies on 5/16/13 01:53 AM #12
Posts: 909

Posted by DHAdmin at 05/16/2013 12:48 AM

Posted by shniggies at 05/16/2013 12:10 AM

question... why is my gold worth so little now? am i reading this right? 39c for 10m instead of 1m?


Correct, Blizzard changed the stack size from 1m to 10m.


but what does the stack size have to do with the price? shouldn't it be 3.90 for 10M instead of the same price for 10x as much??? i feel gipped
Posted by Member nuhertz on 5/16/13 07:00 AM #13
Posts: 512

Your gold wasn't worth that before the change. It was artificially inflated by the price floor.

Gems have been selling at a gold rate very similar to the new floor for quite some time now, as you can see the prices creep downward in this thread.

They don't reach the 2.5 cents per million in this thread, but the last conversions I remember cashing out at were around 4 cents per million. At 36 cents for 10 million, the trend is still continuing.

Perceived value is not actual value, and it's nice to have perceptions realigned accurately again.
Posted by Member eleganthobo on 5/16/13 07:47 AM #14
Posts: 125

Gems prices are an indicator, but another one is to search for what third party sites charge. I personally stay away from these sites and don't want to get hacked, but it does provide another indicator on what the market rate for gold is when there is no artificial floor.
Posted by Member Mehsiah on 5/16/13 08:09 AM #15
Posts: 248

Before this patch, I bought my Mempo with CHC(4) and AS(9), for a decent amount, 500mil-ish.

Checked last night, Same above stats are going for 1.2bil right now, haha.
Posted by Member shniggies on 5/16/13 01:02 PM #16
Posts: 909

Posted by nuhertz at 05/16/2013 07:00 AM

Your gold wasn't worth that before the change. It was artificially inflated by the price floor.

Gems have been selling at a gold rate very similar to the new floor for quite some time now, as you can see the prices creep downward in this thread.

They don't reach the 2.5 cents per million in this thread, but the last conversions I remember cashing out at were around 4 cents per million. At 36 cents for 10 million, the trend is still continuing.

Perceived value is not actual value, and it's nice to have perceptions realigned accurately again.


what do you mean my gold wasn't worth that much?
gold was going for 25c per 1M
if I had 500M then i would have (for arguments sake) 125 dollars

now gold is 25c per 10M
now my 500M is worth 12.5 dollars

thats a huge change in my opinion
Posted by Member arpger on 5/16/13 01:12 PM #17
Posts: 58

Posted by shniggies at 05/16/2013 01:02 PM

Posted by nuhertz at 05/16/2013 07:00 AM

Your gold wasn't worth that before the change. It was artificially inflated by the price floor.

Gems have been selling at a gold rate very similar to the new floor for quite some time now, as you can see the prices creep downward in this thread.

They don't reach the 2.5 cents per million in this thread, but the last conversions I remember cashing out at were around 4 cents per million. At 36 cents for 10 million, the trend is still continuing.

Perceived value is not actual value, and it's nice to have perceptions realigned accurately again.


what do you mean my gold wasn't worth that much?
gold was going for 25c per 1M
if I had 500M then i would have (for arguments sake) 125 dollars

now gold is 25c per 10M
now my 500M is worth 12.5 dollars

thats a huge change in my opinion


Well, just because there was a price floor at 25 cents doesn't mean that was the price. The conversion through buying gems on the rmah and selling on the gold auction house was much lower for a long time.
Posted by Member shniggies on 5/16/13 01:18 PM #18
Posts: 909

Posted by arpger at 05/16/2013 01:12 PM

Posted by shniggies at 05/16/2013 01:02 PM

Posted by nuhertz at 05/16/2013 07:00 AM

Your gold wasn't worth that before the change. It was artificially inflated by the price floor.

Gems have been selling at a gold rate very similar to the new floor for quite some time now, as you can see the prices creep downward in this thread.

They don't reach the 2.5 cents per million in this thread, but the last conversions I remember cashing out at were around 4 cents per million. At 36 cents for 10 million, the trend is still continuing.

Perceived value is not actual value, and it's nice to have perceptions realigned accurately again.


what do you mean my gold wasn't worth that much?
gold was going for 25c per 1M
if I had 500M then i would have (for arguments sake) 125 dollars

now gold is 25c per 10M
now my 500M is worth 12.5 dollars

thats a huge change in my opinion


Well, just because there was a price floor at 25 cents doesn't mean that was the price. The conversion through buying gems on the rmah and selling on the gold auction house was much lower for a long time.


yes i understand that... but its like prices inflated seemingly overnight for me bc i haven't been playing for a while...

man now i really don't feel like playing
Posted by Member Khan on 5/16/13 05:14 PM #19
Posts: 1195

Posted by Baldy at 05/15/2013 08:09 PM

Oh and another thing, does anyone else think that Blizz will raise the max sale ceiling over the 2 billion gold mark per item?


Well Blizzard could do several things:

1) Keep it at 2 Billion. This will effectively destroy the AH as 1 billion is the equivalent of $34 right now at a $0.34 exchange rate. Very easy to get billions...This will then create a flight to the RMAH for those looking to sell those top tier items for more than the $34 equivalent. This also ensures greater income stream for Blizzard.

2) Raise it pass 2 Billion. This will create better movement/exchange between the two houses. However they will have to raise it very high. The downside is that it will cause more inflation. Are you ready to pay 50 Billion gold instead of 2 Billion for that top tier item?

3) Lower the RMAH cap to meet the exchange rate of the AH. Somewhere along $50 might suffice.

4) Wait to see if the price of gold rises to meet its previous imposed floor of $0.25/million. If it doesn't, impose item 2 or 3 or some other monetary policy to create more competition between the houses.
Posted by Member Baldy on 5/16/13 06:17 PM #20
Posts: 706

It strikes me as odd that the RMAH is an actual viable method of offloading goods. A month ago the RMAH was all but dead...
Posted by Member Khan on 5/16/13 07:15 PM #21
Posts: 1195

If inflation continues on the same trend, it'll probably be the way to go. We'll see how Blizzard acts to mitigate the effects of such cheap gold.
Posted by Member ninjax on 5/24/13 04:11 AM #22
Posts: 600

Gems prices are dropping quickly over past week. I wonder if they'll flatten or bubble during the weekend and then go back to pre-patch prices where Radiant Emeralds were a flat 20M.

I've been gem-less since flogging all my higher ones off, so looking forward to buying some back so I can get my damage back up where it should be, although I did manage to buy flawless rubys for ~6K during the 40M+ pricing time.

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12 users posted in this thread: arpger, Baldy, DHAdmin, ecocd, eleganthobo, hdvision, Khan, Mehsiah, ninjax, nuhertz, ocy13, shniggies

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