The money in your pocket

[IcedKake]

Hi i'm 3ricardo3 in game and in this post i'm gonna try and assess the impact of the new update on the RuneScape economy. More specifically i'm going to try to spark a debate about how this update affects YOU, the normal player who doesn't own billions in RSGP. Please bear with my not too impressive english, it's never been one of my strong points...

 

 

 

Okay, so here is the thing. People have been running around w83 and select other worlds in mobs rioting etcetra, people have been panicking since the update about rares prices and prices of other valuable items . (Chicken little anyone?) But is this update really so bad for the economy?

 

 

 

Staking. It was widely recognised as the most efficient way to build up a fortune. Because of it's demise as a mass money getter, Less money will be transferred amongst the richer people. (12k an hour per person max :D) Normally in a population, the top few percent of richest people will have a high percentage of the money in the economy.

 

 

 

I think we will all agree that most of the rich people in RuneScape are stakers. If they have no millions in stakes, getting money is considerably harder. This will mean that they will spend less on Recreational equipment such as 3rd Age armour ETC. More importantly, because money is harder to get for them, therefore more valuable to them, people will Alch less because that 132gp or something you lose on average per alch will be of more value.

 

 

 

This may result in less money coming in the economy in the long run, because Alchemy is the biggest money creator in runescape. (An excellent article by "Duke Freedom" i think valued the whole money in RS economy and the Alching part of it is interesting) Alching is like our printing. If we print less money becomes scarcer, Which means people will spend even less and prices will drop even further and money will be worth even more and the economy will go to even further down a spiralling state of depression.

 

 

 

But there is another standpoint you could take on this, a more optimistic one. If money is worth more and those Bandos tassets which went for 13 million yesterday you had to sell for 12m, essentially you would still have the same amount of buying power that you had yesterday. Okay, you haven't gained anything but you haven't lost anything either.

 

 

 

So what do you think, have our bank accounts suffered from this new update?

 

 

 

(Thanks to someone who I can't remember on lightning chat for the little Chicken :o sorry :()

 

 

 

PS: If there's a debate forum on TIF and a moderator feels its more appropriate there please move the thread. I just posted in general to get more opinions from people :D

[Dragonlordjl]

I personally lost close to 15m gp from this update.

 

 

 

I paid 23.8m for a Bandos Plate, and after the update, they are 16-17m.

 

 

 

I paid 14m for tassets, and now they are 10-11m.

 

 

 

I paid 43.5 for a ZGS, it is now worth 35-37m.

 

 

 

I paid 23.2 for a DFS, and now it is worth 22.5-23m.

[Latinoking]

I Dunno I get all my materials soo I'll keep alching.

[IcedKake]

Interesting Latino.

 

But the make/alch thing is on a smaller scale than the buy alch I would think. Correct me if I am wrong :D

[Aneron]

Although the staking update was the cause of all the price dropping fury, the fact that staking is now dead is almost unresponsible for this. The reason everything has dropped is that people have said "OMG ECONOMY IS TEH CRASH MUST SELL STOOF@@@@@" and in doing spread panic so that everyone is selling everything they have of value. A sudden surplus of supply on the market is responsible for the crash in prices of many items (something similar happened on Black Tuesday and caused the Great Depression).

 

 

 

Eventually all of the chicken littles will run out of stuff to sell, and prices will stabilize.

 

 

 

However, they may or may not be much lower than they originally were.

[Chippy_PK]

i think since there selling all there stuff its going to make it crash as in the prices with skyrocket....merchants will buy there things then when no1 has anymore......they'll sell for alot in a last chance attempt at a mass takeover of runescape......... :twisted:

[TheAncient]

Although the staking update was the cause of all the price dropping fury, the fact that staking is now dead is almost unresponsible for this. The reason everything has dropped is that people have said "OMG ECONOMY IS TEH CRASH MUST SELL STOOF@@@@@" and in doing spread panic so that everyone is selling everything they have of value. A sudden surplus of supply on the market is responsible for the crash in prices of many items (something similar happened on Black Tuesday and caused the Great Depression).

 

 

 

Eventually all of the chicken littles will run out of stuff to sell, and prices will stabilize.

 

 

 

However, they may or may not be much lower than they originally were.

 

 

 

Yes, the BGS market panicked and I was able to buy one at 37.5. Now they are stabilizing around 39.5.

 

 

 

Same with phats, although I don't have solid figures.

 

 

 

You people who lost money on GWD stuff.. it's overvalued to begin with (and still is now). Should have seen it coming :shame:

[Dragonlordjl]

Although the staking update was the cause of all the price dropping fury, the fact that staking is now dead is almost unresponsible for this. The reason everything has dropped is that people have said "OMG ECONOMY IS TEH CRASH MUST SELL STOOF@@@@@" and in doing spread panic so that everyone is selling everything they have of value. A sudden surplus of supply on the market is responsible for the crash in prices of many items (something similar happened on Black Tuesday and caused the Great Depression).

 

 

 

Eventually all of the chicken littles will run out of stuff to sell, and prices will stabilize.

 

 

 

However, they may or may not be much lower than they originally were.

 

 

 

Yes, the BGS market panicked and I was able to buy one at 37.5. Now they are stabilizing around 39.5.

 

 

 

Same with phats, although I don't have solid figures.

 

 

 

You people who lost money on GWD stuff.. it's overvalued to begin with (and still is now). Should have seen it coming :shame:

 

 

 

*shrugs*

 

 

 

I honestly don't care anymore. This game isn't that interesting to me anymore... In fact, I often find myself logging on and scratching my head for things to do. Everything seems so unappealing, so I eventually log off ten minutes later.

[hohto]

This may result in less money coming in the economy in the long run, because Alchemy is the biggest money creator in runescape. (An excellent article by "Duke Freedom" i think valued the whole money in RS economy and the Alching part of it is interesting) Alching is like our printing. If we print less money becomes scarcer, Which means people will spend even less and prices will drop even further and money will be worth even more and the economy will go to even further down a spiralling state of depression.

 

 

 

Staking doesn't create money, it gathers it from players X and Y to player 1.

 

 

 

Now when you aren't anymore potential of becoming rich from staking, people who want/need money collect it other ways, either by starting dmin with valuable items or cash in their inventories by "creating" it through gaining raw materials that can be turned into alchables.

 

 

 

Also due the fact that high alching isn't only creating money, it's also a good way for magic xp for those who can't afford losing big amounts of money, nature runes and alchables have felt to a level where they really can't drop or rise a lot.

 

 

 

In my eyes this panicin about economical crashings, rare items and mass hysteria are based on realism as much as my last night's dream.

[IcedKake]

This may result in less money coming in the economy in the long run, because Alchemy is the biggest money creator in runescape. (An excellent article by "Duke Freedom" i think valued the whole money in RS economy and the Alching part of it is interesting) Alching is like our printing. If we print less money becomes scarcer, Which means people will spend even less and prices will drop even further and money will be worth even more and the economy will go to even further down a spiralling state of depression.

 

 

 

Staking doesn't create money, it gathers it from players X and Y to player 1.

 

 

 

Now when you aren't anymore potential of becoming rich from staking, people who want/need money collect it other ways, either by starting dmin with valuable items or cash in their inventories by "creating" it through gaining raw materials that can be turned into alchables.

 

 

 

Also due the fact that high alching isn't only creating money, it's also a good way for magic xp for those who can't afford losing big amounts of money, nature runes and alchables have felt to a level where they really can't drop or rise a lot.

 

 

 

In my eyes this panicin about economical crashings, rare items and mass hysteria are based on realism as much as my last night's dream.

 

I agree with most of your points , but the first was a bit pointless as i never said staking created GP from nothing :o

[Bo4345]

The rule of supply and demand comes into effect here. Too much supply not enough demand causes prices to drop. Also it seems like the Great Depression of the US in 1929 right now lol :|

[IcedKake]

it does doesnt it :o

 

I was gonna comment on that lol but i better not say anything more cause i'll prolly be wrong. Not american see :D

[Krimm911]

You might not realize this now, but I'm pretty sure Jagex is trying to make the RS gold coin worth something again.

 

 

 

Example: If there is a 50 man tourney, you all pay 10k, meaning 500k for the winner. If Jagex only gives the winner 400k of the money and takes the other 100k as a "tourney fee" they are pulling gold out of the economy making the gold coin stronger.

 

 

 

Since the price of items are shooting up, I believe Jagex is trying to pull prices back down by doing this. It is a noble cause and I believe will help RS out in the future.

[IcedKake]

Hmm Yeah that may be... Its a good point but I thought they stated that ALL of the entry fees put together go to the winner :o

[Krimm911]

As of right now it is. But the update stated that the Grand Exchange will be used as a gage of items value. I have a feeling that the Grand Exchange will also be used to create a "gold sink" in the economy.

[wurmskin]

Hmm Yeah that may be... Its a good point but I thought they stated that ALL of the entry fees put together go to the winner :o

 

 

 

That would be right. Under the Duel-Arena page in the KB, Jagex states that "If you win the duel tournament, you will be teleported to the Duel Arena Hospital, all of your wounds will be healed, and you will receive all of the entry money taken."

 

 

 

The possibility that Jagex'll use the Grand Exchange as a medium to make a "gold sink", as said by Krimm, is highly plausible considering that it's about time for another (massive) money sink. The last time that this occured was when Construction came out I think and perhaps they think it's about time to have another one. Maybe it'll be in order to compensate for the large amount of gold that stopped going out of the game because of shop update? I don't really know, but it'll be interesting to see how things will turn out : .

[IcedKake]

Hmm yeah we do need a huge money sink :o

 

Comission on every sale for the exchange?