Tijger2099

Solidus. I did name that your theory (which is basically the same that I gave) also does apply to mainly ALL luxury goods, only I called them them elite-items (items that can only be bought when your income or wealth increases). Secondly I already admitted that the term inflation is not correct in this situation, the basic idea most people have with inflation is that more money is circulating in the economy, therefore I used the term inflation, even though I know it's not really an applyable term for this situation, but I tried to make that clear by going into much more detail about what I meant.

You forgot the part of people getting rich off the new items and being able to invest on rares. Agreed, secondly I do not believe in james' theory at all, people aren't gonna sell alot of their items just to try on an item and sell it 5minutes later. For that they could just check some screenshots or read somewhere about the bonusses. It costs them alot of time and they will eventually lose money on selling and buying all your items back in such a short period of time.

Agreed, we are on the same line then :P I also don't agree with the term inflation, and I admit that. But as not everyone here is too much into economics, inflation to me seemed to the term most suitable to the knowledge most people have about economics :)

I don't agree with this point. If you look at the prices in general, only certain goods have rosen in price while others have gone down and many stayed at the "normal" level. I don't agree with your point. Well I agree that some prices went up and some went down but you have to look at what items went up and which went down. It is mainly the elite items (with elite items I mean rares and any other items somewhere between 25m and 100m+, but also the amount of red chinchompas you need for 99 ranged is what I call as an elite item, only the very rich are able to buy it). As people get GWD items as a drop and selling them makes them alot richer, allowing them to buy some of the elite items for example. However items such as barrows don't go up, instead they go down. The point is that the price of barrow sets ain't high enough to belong to the elite-item group, and therefore didn't go up in price when GWD items were released. For people to actually being able to fight in the god wars dungeon on itself you already need to have quite some money, for example for armour (mainly barrows), potions, food and things like that. Most people that seriously fight for GWD items do already own things such as barrow sets, therefore when they make 50m from GWD items they don't suddenly buy barrow sets cause they're richer, mainly cause they already got them.

However, that is not inflation. Inflation is the increase in the number of currency in circulation. If a lot of people start high-alching all of a sudden, they would be bringing in new currency. More currency is being used, and this causes the currency to start to devalue. People begin to buy items for higher and higher prices, since their money isn't worth as much as it used to be. It is inflation, but you should tackle it from a different angle. Irl inflation indeed means that more money is brought into the economy. However in this case you should divide the rs economy in 2 sides: 1) On 1 side are they very rich, they got plenty of money + rares. They've already got everything they want, they still spent some money from time to time to train skills but most of the money is kept safely in their bank. This money does belong to the rs economy (obviously) however at this moment the money ain't circulating in the rs market (it is kept in their bank). 2) On the other side is the population that vary between very poor to medium rich. In this case we rule out the very poor and have a better look at people that I'd call medium rich (let's say 10m-50m). Now what happens is that new items were released into the game lately, the god wars dungeon items. Currently they are still worth a fortune and many people make alot of money from it. The 2nd group (the medium rich) is starting to obtain various new items, basically the only one that in the beginning could really afford these items without a massive decrease in their total wealth are the people in group 1, the very rich. The money they always kept safely in their bank is now transferred to the 2nd group, the group which already has quite some money, but are far from having every item/high stat they want. Now that some of the players in the medium-rich group own alot more money they can afford items (such as rares, red chinchompas for 99 ranged etc.) they could or would never buy before they got a valuable item. I hope I cleared things up how I got to inflation ;)

99 slayer Simply because it trains extremely slow and going to 99 with cannon is so expensive I can no nowhere afford it, secondly if I'd have to do it all by myself I would already be maxed out with my melee stats around 90 slayer, training another 9 slayer lvls (= massive melee xp) is a waste of xp :c

It's very easy, and sseli already mentioned it. When in Rs prices of certain items increases I can give you on a note that 8 out of 10 times in that week there was a release of new items, being sold for lots and lots (in this case the GWD items, in the past it were dragon full helm, dragon fire shield and such). There are some very rich people in the game, however they keep most of their money, so the money is in the rs economy, but not in the market. Now that the GWD items are released several people that weren't very rich, or were quite rich but still want to sell their drops get some GWD items. The very rich buy these items for very high prices since it probably won't be alot compared to all the money they got. What actually happened here is that the money that wasn't really circulating in the market now DOES enter the market. The money moved from the very rich to the medium rich/quite rich people. However these medium rich/quite rich population that now got alot of money from selling GWD items now purchase things they'd never had done before if they didn't get a GWD drop. For example 'buying 99 ranged' with red chinchompas. Imagine they used to have 'only' 30m cash, now they sold a hilt for let's say 50m. Now they got 80m and they can afford buying 99 ranged now, some of them also actually do this. Therefore increasing the demand for red chinchompas --> price rising. The same happened to rare items lately, because some of the money that was in the rs economy already moved from rich people -that kept the money outside the rs market- to people who are less rich and now can afford many more things they couldn't buy before, such as rares (= rares going up). I hope this story is a bit clear, the moral of the story is mainly that INFLATION caused prices of items such as rares and red chinchompas to go up. As people got more money from GWD items they now can buy some of the 'elite' items (rares, chinchompas). It is quite an abstract theory but I hope I cleared up some things ;)

Supply and Demand is a too broad answer in this situation (in most situations it is). Supply and Demand is the basis of economics but it doesn't explain why certain prices fluctuate, to have a look at why that actually happens you need to dig deeper into the economy, until you find various factors that on their turn INFLUENCE the supply and demand, but the supply and demand on itself doesn't explain why prices change. In this situation inflation caused the supply and demand to swift, and in the end resulted in the price changes as we see them now. What I mean with inflation and such you can read in a few posts nearer to the top of this thread.

Lately a lot of expensive items have been released into the game (dragon full helm, visage, god wars items, etc.). Causing inflation, making the prices of items such as Barrows go down. However it doesn't work for rares, instead they go up, the inflation causes the money in rs to move from very rich people to people who got lucky with drops of the new items for example, they eventually invest in rares causing the demand to go up = prices going up. It's basically as easy as that

Just great!

Bad idea. If you keep on winning you are actually making quiet alot of money, but instead of winning money that has been made by someone else you actually win money from a bot. It's hard to explain but if you duel someone now the money just moves from a character to another charactor, the amount of gp in rs just stays the same. But if you duel a bot you actually win (if you win) money that just comes from nowhere, just like alching. So if you'd release this the inflation would be huge and prices of everything you can think of would crash. Secondly there's not this factor involved that your opponent doesn't dare or doesn't want to stake a certain amount of gp, simply because it's too much. If you release this into rs you could just put up any amount of money and stake it (off course you should have that amount of money you want to stake yourself as well). So you could just stake 100k, if you lose you stake 200, lose again stake 400k. And so on, people who stake usually have quiet alot of millions so they could do this alot of times, and eventually they will win a time where they actually win back what they lost + profit. It's kind of hard to explain but let's keep it simple, this totally unstabilises the rs economy.

<3 ur bank arvid (I'm Owned_4ever2 :P) Share? ^^

<3 ur bank! :c

Love the blue and all the other items, you can just do everything you want now :D

Nice article. But looking at peoples replies it looks like economy is all based on supply and demand. I have to agree that supply and demand is very important in economies but prices aren't only based on supply and demand, there's thousand of other factors involved that either adjust the price indirectly by influencing supply and demand on it's turn, or it influences it directly. However irl there's so many more things that play a role in economy that we don't. I don't dare to say that I learnt alot from rs economy even tho I trade alot. Yes we might get a better idea about the supply and the demand, but it is such a little percentage of the entire economy that I won't say that I learnt alot, but that's just me. Other than read very nice article, easy read.

Those are some awesome hits! But I still wonder, where is this place?

Well today was my birthday and I became 16 today so I know exactly what I did today and what I'm going to do :P I finished the new quest, got the new prayers and got 62 crafting by using the lamp. Also got 98 att and about to get 82 defence. Tonight I'll try to get torso but still don't have a team (if you want to do Barbarian Assault pm me on Owned_4ever2 :D). I won't be buying/driving a scooter since I find it too expensive to waste my money on that (if I even had enough lol!), I prefer to safe right away for a car and getting my driving licences.

Very nice stats and bank. And I don't just look at your rares, beside your rares you have plenty of other items that you could use to train skills. And not just small amounts, no you got bulk items for like every skill, just amazing!

Congrats! Very good job!, this way even is profitable (right?) so that is always slight more motivating to get a skill to 99 rather than losing millions with gold ores :P How many hours a day did you play? And did you ever take a break, (a day? maybe a week?) or did you just nolife smithing and didn't do anything else with friends on rs :P). Either way very nice achievement, maybe I'll ever get it but not for a while :D

I done 381 trips without anything good -_-

Very Nice. I killed 381 KQ's now and still no single dragon chain or d2h, just pathetic :s

Very nice skills, 3 maxed out skills in 10 days is kewl! :D

I loved both articles, some very good points were actually made. I still report autoers everyday and will continue to do so. I can't deny that our economy also depends alot on autoers, but there's just too many of them, I mean we just have to STOP doing things cause there's no place for us to do it anymore. People start skipping this quiet good blue dragon task just because gu'tanoth is full of autoers and gold farmers. And soon they will realise that with all the irl and ingame they make by autoing is worth nothing as they'll end up in a community with only other autoers.

Thanks a bunch! It worked for me :D And btw it's not that hard to find compatible brushes, on deviantart go you brows > resources > application resources > photoshop brushes. So then you have compatible brushes all over the place. But thanks I got it, mods can lock this now :D

This stats/bank for 1 year of playing and I get a 6.8/10. Oh well ty ^^