Sure, iron ore has doubled in price.

 

Herbs went mad there for a bit... but are slowly settling back down.

 

Gems... well, they're just damn ridiculous right now.

 

But these are basic gatherable items. Anyone can produce them, and thus have these fistfulls of cash to say, buy a different one.

 

If you aren't sitting on huge piles of coins (really never a good investment strategy) then you are perhaps doing better to buying higher end items.

 

Whip at 3.4 million coins? Sounds like a lot. I'm not saying it isn't... but... with herb prices, that's a week of managing your kingdom. Or say you have been power mining... it's around 200 diamonds. Not a completely unreasonable number.

 

Diamond at 17k coins and the necklace from it enchanted at 2k coins? A bit unreasonable from the practicality standpoint, but exp is a commodity, and by making these items, exp is expended from the raw materials. But not only that, but tens of thousands of people can make them. It's not a rare skill, so not exactly something you can charge for.

 

The safest way for investments is likely always raw materials, especially if there is always a use, and they never expire. As more coins are minted, that's more coins for people to give to you for them.

 

Your savings account may have suffered, but other than that does the inflation really hurt you? Isn't it easier than ever to rack up the cash to get practical and valuable items than ever before?

 

 

 

Please attack my reasoning so that I may sure it up a good bit.

 

Thank You,

Time Kitten Vn~

Sure, iron ore has doubled in price.

 

Herbs went mad there for a bit... but are slowly settling back down.

 

Gems... well, they're just damn ridiculous right now.

 

But these are basic gatherable items. Anyone can produce them, and thus have these fistfulls of cash to say, buy a different one.

 

If you aren't sitting on huge piles of coins (really never a good investment strategy) then you are perhaps doing better to buying higher end items.

 

Whip at 3.4 million coins? Sounds like a lot. I'm not saying it isn't... but... with herb prices, that's a week of managing your kingdom. Or say you have been power mining... it's around 200 diamonds. Not a completely unreasonable number.

 

Diamond at 17k coins and the necklace from it enchanted at 2k coins? A bit unreasonable from the practicality standpoint, but exp is a commodity, and by making these items, exp is expended from the raw materials. But not only that, but tens of thousands of people can make them. It's not a rare skill, so not exactly something you can charge for.

 

The safest way for investments is likely always raw materials, especially if there is always a use, and they never expire. As more coins are minted, that's more coins for people to give to you for them.

 

Your savings account may have suffered, but other than that does the inflation really hurt you? Isn't it easier than ever to rack up the cash to get practical and valuable items than ever before?

 

 

 

Please attack my reasoning so that I may sure it up a good bit.

 

Thank You,

Time Kitten Vn~

 

Thank you. Everything I've needed to say about inflation, only into smart-peoples words.

The inflation isn't that bad in some areas, but still quite ridiculous in others.

 

Fishing - feathers are 15gp per feather now, but you can always buy 1k feathers at lumby fishing store for 6gp each.

Runecrafting - essence are 55gp now, but with the skyrocketed rune prices, you can still easily profit.

Cooking - raw food is more expensive than cooked food, but that's no surprise. It has always been like this.

Firemaking - log prices are actually LOWER than before, surprisingly.

Smithing - I'll have to agree there, the bar prices... :blink:

Crafting - same with smithing.

Woodcutting/Mining/Fishing - you make more cash than before, so it's a complete benefit.

 

There might be other examples but I don't feel like listing them.

That is very true, I might aswell dump my cash pile on coal or something >.<

Actually, the feathers aren't really from inflation, they are from fletching broad arrows/bolts, where it is quite easy to get 3k of each every week, making it both a nice training option, and even a profit as those are among the most used of ammunition.

I don't think it's that bad either. The prices of items have gone up, but this also means that you're able to gather more money in a shorter period of time. The only people who are severely hurt by it are the ones that failed to invest the cashpile they had in the first place, because cash was the biggest thing devaluating.

I've been saying this for weeks, its an economic topic called the neutrality of money.

 

One thing that's interesting to see is how the relationships between items don't change much. For instance, you don't lose money if you superheat mithril, even though the price of all the materials have increased. Or, you still lose the same proportion if you cut gems.

 

The easiest way to rise above inflation is to not use GP as a store of value; where in the real world this would be difficult to do in runescape is easy because all items are created equal, and age has nothing to do with them.

I think you have a great point in that experience is a commodity. It will always be. Now, I can definitely understand that the buyers of items could be a little ticked off by the rising prices, but that happens to all economies when the demand rises enough. The inflation also helps out the sellers of these things in the long run, fetching them a bit more money. The Abyssal Whip, for example, with its nerfed drop rates, costs a lot more than it used to.

 

All the prices really are doing is making gathering the raw materials for things more profitable for the workers.

 

Hopefully, this doesn't go the eventual way of socialism though... Damn Karl Marx.

I think you have a great point in that experience is a commodity. It will always be. Now, I can definitely understand that the buyers of items could be a little ticked off by the rising prices, but that happens to all economies when the demand rises enough. The inflation also helps out the sellers of these things in the long run, fetching them a bit more money. The Abyssal Whip, for example, with its nerfed drop rates, costs a lot more than it used to.

 

All the prices really are doing is making gathering the raw materials for things more profitable for the workers.

 

Hopefully, this doesn't go the eventual way of socialism though... Damn Karl Marx.

 

I think RuneScape is already becoming Communist already.

Some of the higher prices aren't only from inflation I think.

When you look at updates, there is an explenation for it.

 

Herbs went through the roof, due to the herblore update. Since the new extreme pots aren't tradeble, you have to make it yourself, using some lower level herbs.

People aren't willing to hunt the herbs themselves, and the extreme pots are loved, so basiclly more people train herblore, buying herbs.

And on top of that, you need super sets, anti fires, before you can add a herb to make it super anti fire or extreme.

And they use what they can from MTK. Then again, people tend to trade the herbs for hard coins.

I think herbs never get back to their old value now.

 

Whip is mostly because of the new Barbarian Assault. Coloured whips are the thing to have, although it isn't doing anything more then looking nice.

And because people want a coloured whip, they are buying them. Shortness on whips + new update equiels higher price. I agree 3.2 mil is a bit of an overkill, I bought mine for 1.9 mil...

 

Bones are highly sought after because of the curses. People wanting the best they can, and training prayer like a maniac to get the upper hand in combat.

 

Diamonds is one thing I don't know. Why are they rising. Other gems, I didn't looked at it, but maybe there is an explenation too.

 

Feathers are explained due to broad bolts and arrows. It's a moneymaker and broad bolts are mostly used when ranging.

Inflation would not be a problem if people's income is also inflated, which I believe they are at this case. So what if the item's price is double now? If your pay also doubles, there is no difference.

Well, you could always do what I have done - assuming you have the cash and/or guts for it.

 

I'm out of the economy as a purchaser, for the most part. I skill to sell - most of my secondary skills are 99s, and the ones that are buyable I have the goods for a few levels. That makes it so that I actually appreciate if prices go up, since I'm a producer only.

 

For most people, I think the idea is to focus only on gathering skills, and sell the items for profit (= sell the xp for "refining" the item). If enough people do it, and flood the market, we'll see prices drop some. Well, until all of the people who got rich selling raws start buying back!

Inflation would not be a problem if people's income is also inflated, which I believe they are at this case. So what if the item's price is double now? If your pay also doubles, there is no difference.

 

Well in theory you are right. If the prices are double, but you have the money, people don't having a big problem.

I think the problems start when to much people having billions of cash, and keeping it in bank.

Don't know much about the history of runescape, but I thought people where sitting on billions, and Jagex decided to release a moneydrain skill, wich has benefits on higher levels, to get cash back flowing.

Maybe someone could explain the history of construction and the release.

Inflation would not be a problem if people's income is also inflated, which I believe they are at this case. So what if the item's price is double now? If your pay also doubles, there is no difference.

 

Well in theory you are right. If the prices are double, but you have the money, people don't having a big problem.

I think the problems start when to much people having billions of cash, and keeping it in bank.

Don't know much about the history of runescape, but I thought people where sitting on billions, and Jagex decided to release a moneydrain skill, wich has benefits on higher levels, to get cash back flowing.

Maybe someone could explain the history of construction and the release.

Construction being a moneydrain doesn't have a lot to do with people sitting on millions and deciding to get the money flowing again. It being a moneydrain means that there is actual gold 'drained' from the game. Of course the people with a lot of money will go about and spend it, but this is the case with all new skills that can be quickened when you spend some money on it.

 

The 'problem' then was that there was a surplus of gold in the game, and the skill took some money out. For example; when turning logs into planks, you have to pay quite some money to an NPC. This money is no longer flowing, it is actually gone. Remember, when money starts flowing more, the prices of items will probably increase.

 

Construction was an effective method of stopping the inflation at that time. Most of that inflation came from the gold created through alching, which was the way to go for magic training back then.

 

The rise in price of most items over the last year was initiated by the pvp updates, where the statues could be sold to an NPC. The Pvp-trick resulted in a lot of these statues and a lot of gold was created by this. However, I think that the overall acceptance of this 'ínflation' caused people to buy the inflated items for a longer period of time, due to the way the GE system works, with items becoming visually worth more, causing these items' prices to increase by a lot more then a normal inflation could have caused.

 

Pure inflation in RS happens because of more money entering the game than leaving it. This will result in money becoming less scarce, and therefore decreasing in value. This means that items will keep the same relative value towards eachother. Therefore only the people with big piles of cash are experiencing the negative influences, because the now have less effective buying power.

 

 

There is something I was thinking about while on this subject; did the implementation of the coinshare system have a noticable effect on inflation at that time? I wasn't actively playing at that time and was wondering about this. I would guess that it didn't really have an effect, but a friend of mine was convinced it did.

1 diamond costs 16k max. Now you get 12 bolt tips from one diamond. And one diamond bolt (e) costs 17k.

1 diamond costs 16k max. Now you get 12 bolt tips from one diamond. And one diamond bolt (e) costs 17k.

ummm, no. One diamond bolt(e) costs ~1.7k, not 17k.

1 diamond costs 16k max. Now you get 12 bolt tips from one diamond. And one diamond bolt (e) costs 17k.

Err... wow, you found something that makes 200+ gp (per diamond) for... what, 30 seconds of work?

 

You could also run around picking up coin drops after people in the slayer tower.

 

Or you can do this to train a tiny bit of crafting, magic, and fletching.

 

If it's you're thing, by all means.