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Showing posts with label Inflation. Show all posts
Showing posts with label Inflation. Show all posts

Wednesday, April 11, 2012

What To Stockpile For Mists Of Pandaria | April Gold Blogging Carnival

How To Make Gold In WoW
Cold's Gold Blogging Carnivals


Cold's Gold Blogging Carnival - 2012

Welcome to another 2012 edition of Cold's Gold Blogging Carnival. These carnivals will continue to take place the 11th day of every month and will be hosted here at Cold's Gold Factory. All World of Warcraft bloggers are welcome to participate and feedback both here and on the original authors' sites is strongly encouraged. So show some support and please leave some feedback in the comments section. These bloggers put a lot of time and hard work into these blogging carnival posts so please tell them what you think.

If you would like to be included in the next month's carnival, please review the guidelines for Cold's Gold Blogging Carnivals and submit your live post link via email (ssmith0911 at live dot com) before the 10th of the month. Read up on the benefits of participating in blogging carnivals at my other blog designed to help new bloggers, Blogging Vitals.  (Lots of tips for those of you starting out or interested in blogging.)  Articles for the CGF carnival are listed in the order they are received. Thank you to all the bloggers participating in this months carnival!

If you are not a blogger, you can still participate in the monthly carnivals as you can have a post hosted at Goldgrubs.com.  Now I present to you this month's participants answering the question:


What Is Your Stockpiling Plan For Profiting & Hedging Against Inflation in MoP?



Stockpiling For MoP by Jafo of The Auction House Grind


Getting Ready For Mists of Pandaria: The MoP Stockpile by Farli of The Overcut


What To Stockpile For Mists Of Pandaria by Cold of Cold's Gold Factory

Getting Ready For Mists of Pandaria: An Overlook by Alaeriel of Alaeriel's WoW Stuff


Thanks again to all of this month's participants.  Be sure to check back later for next month's carnival topic and remember to look for next month's gold blogging carnival on the 11th.  If you have a topic idea, don't be afraid to send it in.  We may use your idea, which will get you proper credit as well.  

Until next month,

Keep on keepin' on!



Enjoy The Posts Here at Cold's Gold Factory? Check Out Cold's Mysterious Fortune Card Mastery Gold Making Guide. Also Check Out My New Favorite All Around WoW Gold Making Guide and J!inx - Clothing For Gamers And Geeks.

Tuesday, April 10, 2012

What To Stockpile For Mists Of Pandaria | Cata to MoP Stockpiling

Time To Stockpile For Mop & Pandas!
Stockpiling For Mists of Pandaria


Stockpiling For Mists Of Pandaria


Is it too early to Stockpile for MoP?  The Cataclysm expansion has come to a lull and Diablo 3 is on the horizon, but it is definitely not too early to start thinking about stockpiling for Mists of Pandaria.  Have you thought about what you will be stocking up on?  When the new WoW expansion launches, we will see another profitable mass influx of players joining the game.  These players will be a mix of brand new players and returning players.  Many players will be wanting to try the new monk class or the new Panda race.  New players and new characters bring an increased demand for many items like those required for profession leveling or items that enhance or speed the leveling process.  There will be many markets that will return to being viable simply because of the population growths that always occur following a new expansion's release.  Remember a major patch or a previous WoW expansion launch when you ran out of something that was a goldmine at the time?  Did you wish you had stockpiled more of them?  Or maybe you hadn't even stockpiled at all and the auction house prices had gone through the roof on you.  Don't let your competition choke you out of the auction house because you forgot to stockpile!  It is time to think ahead to tank advantage of this major market cycle in WoW.

Raw Materials


With any new character population explosion there will be an increased need for all raw materials required for leveling a character's professions.  Ores, Herbs, and Leather will all see an increase in demand at the beginning of MoP as players level there professions.  As the expansion continues farther past the launch and there are less characters in the leveling zones, the lower level raw materials prices will start to climb as there are less players and bots farming those areas for raw materials.  Most players and bots will move on to the new MoP raw materials.

Anything that you will be needing to level a profession or to continue a niche market it is a good choice for your MoP stockpile.  If you are looking for good money makers to sell quickly, then you should focus on raw materials that are choke points to leveling a profession.  You can even make WoW inflation work in your favor, by stocking up on raw materials at today's prices and then selling the crafted good at the later inflated market rate.

Leather is currently hard to come by on my server and I only predict that it will get worse, unless we see a nice influx of monks, pandas, and new characters coming in as skinners.  Even then, the demand for leather and leather crafted goods will skyrocket with all of the monks in MoP.  Remember the rush on Plate when Death Knights were added?

Inks


What is the best item for any scribe to stock up on?  Inks are the main focus of a Scribe's stockpile.  Why Inks?  Versatility!  We know that the glyph system is getting another major overhaul, so crafting a bunch of glyphs ahead of time could be a flawed plan.  Every time there is a glyph overhaul, we get glyphs that don't survive any changes.  These glyphs turn into vendor trash.  Any of these you have pre-crafted that you can't get rid of will be wasted potential profits.  Saving Inks in your stockpile for MoP will keep you versatile.  The Inscription exchange vendors like Jessica Sellers should be utilized prior to the new expansion. The vendors will be changed to require the newest MoP Inks so any stockpiling of the various Inks should be done ahead of the expansion.  If you forget, you will be stuck with a bunch of Blackfallow Inks.  So remember to visit the Ink exchanging npcs prior to MoP.  These vendors can be changed in pre-expansion patches as well, so start thinking ahead.

Catering To New Characters


There are many markets that will see a spike in demand because of all the new characters entering the game.  Selling to new characters in Cataclysm, made me a massive chunk of gold.  Planning and thinking ahead to what these new characters will be wanting to buy is an important step in the process of making gold off low level and new characters that should be started soon.  If you plan on making certain gear that new players will want, you might want to be stockpiling the harder to find materials in your MoP stockpile.  Leather gear will be at a premium because of the increased demand that monks will bring to the economy.  I would highly recommend starting your leather stockpiling now.  Barbaric Bracers, Deviate Scale Belts, Toughened Leather Gloves, and other low level Leatherworking niches should be vibrant again.  Many of these take some harder to find materials that should be stockpiled now, if you are planning on hitting those markets.  Good low level green items that have the proper stat combinations will also be good items to flip to the leveling monks and other leather wearing classes.

Bags are always a huge seller when expansions bring a character population explosion.  Remember to sell the profession specific bags as well.  The bags required by the various professions have always been great investments,especially the mining bags.

The population explosion is also another great time to start or resume MFC Barking.  Barking is always more effective the more players are hearing your barks, so expansion launches are great times to bark.  You don't have to limit barking to just Mysterious Fortune Cards.  Adventurer's Journals are another great item to sell to  leveling characters.


Check out my Top 6 Items To Craft For All The Monks Coming In MoP

Hedging Against MoP Inflation


Inflation is coming in MoP.  The item most succeptable to inflation is liquid gold.  That's why building a stockpile for MoP is so important.  By choosing items to buy as inflation hedges we buy specific items now that we will hopefully be able to sell for much more into the next expansion.  Historically, good choices have been hard to obtain items like rare and hard-to-get companion pets, mounts, and expensive vanity items.  With MoP bringing us the battle pet system, I still think pets are a no brainer here.  Stocking up on the rare pets should bring a nice payout in Mists of Pandaria.  I would also keep an eye out for nicely priced rare mounts like Poseidus.  Less players will be in his zone and his price should inflate and be a nice hedge against inflation.

Now that we have more news on the Battle Pet System, don't miss my new posts on:

Have You started Your MoP Stockpile Yet?



Be Sure To Check Out Cold's Mysterious Fortune Card Mastery Gold Making Guide. Also Check Out My Favorite All Around WoW Gold Making Guide or the PvP and Gold Making Combo and J!inx - Clothing For Gamers And Geeks.

Saturday, February 25, 2012

Using Inflation To Make More Gold In WoW

Inflation in WoW - Prepare or Lose
Inflation Basics In WoW
Inflation is a term that describes the erosion in purchasing power of a currency.  As more currency (gold in WoW) is readily available, prices tend to go up.  The resulting problem is that the value of that currency gets weaker as the same amount of currency can't buy as much as it used to be able to buy.  Inflation is a great threat to the value of your stockpile of liquid gold in World of Warcraft.  If you just sit on your gold from expansion to expansion, it loses value.  The same amount of gold will be able to buy you less in the future.

In·fla·tion - A persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation).

In World of Warcraft, the inflation gets worse as more expansions are released.  Quests give more gold, looted items sell for more, higher level character corpses loot for more coin, bosses and creatures drop more gold, and these all help contributed to more gold being more easily attainable.  Players start to have more personal gold than before, even if they are not using any ways to make gold in the auction house or with professions.  It's just simply easier to get more gold.  Since players can easily obtain more gold, they are able to spend more on the same items. 

Using Inflation To Make Extra Gold

Combating inflation is a strategy we must prepare for at the end of an expansion.  Liquid gold is affected most by inflation.  The value of the gold piece will continue to go down.  To combat the devaluing of the currency, we have to invest more of our liquid gold into commodities.  We can make an inflation hedge by buying commodities that we know will increase in value.  If we buy at today's price and sell at a future inflated price, we can not only make a profit, but we have protected that invested gold from the devaluing effects on inflation.  The key is to make inflation hedges with commodities that will rise in value.  Good examples are hard to obtain pets (think Argent Tourney pets), farmed commodities, rare mounts, etc.  Before the new expansion drops, we will be devoting an entire episode of Auction House Junkies to inflation and inflation hedging. 

The formula for using inflation to your own advantage is pretty straightforward.
Buy Materials Now At Today's Prices, Then Sell Your Crafted Goods At A Later Date At The Inflated Rate.
I will use my own Netherweave Bag stockpile as an example.

I stockpiled around 7-8 entire guild tabs full of Bolts of Netherweave Cloth during mid-Wrath of the Lich King.  I paid around 4-6 gold average per stack of Netherweave Cloth when I made the stockpile.  At the time Netherweave Bags were selling for 9-11 gold each.  Today, at Cataclysm's end I am still working off of that same massive stockpile that cost me much less than the current value of 8-12 gold per stack of Netherweave cloth.  Currently Netherweave Bags are selling for 15-25 gold each on my server.  So by forming a prepatch stockpile, I was able to lock in my crafting costs at the older cheaper rate.  I was (and still am) able to sell the resulting crafted items at the current new inflated rate.  And I can also undercut deeper than competitors who are stuck crafting from the current inflated materials rate. 

So have you started to think ahead to Mists of Pandaria and what items to be buying as your inflation hedges?


Enjoy The Posts Here at Cold's Gold Factory? Check Out Cold's Mysterious Fortune Card Mastery Gold Making Guide. Also Check Out My New Favorite All Around WoW Gold Making Guide and J!inx - Clothing For Gamers And Geeks.

Monday, October 25, 2010

Making Gold Off Cataclysm: Guest Post by Inkobah

Cataclysm Is Nearing
Today I have a special guest post from Inkobah of Twinkinfo.com.  You may recall his name from a posting I reproduced here titled:  Cataclysm: The Rebirth of Twinking (Part 1).  Inkobah is one of my favorite writers and I am excited to finally have a guest post by him.  If you are interested in twinks, make sure to learn about twinking, how to make a twink, and what twinks buy and use over at Twinkinfo.com. 

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Making Gold Off Cataclysm

The World (of Warcraft) is changing drastically. Soon the two original continents will look much different than we’ve gotten used to over the last 6 years, skills and spells are changing, stats and items are changing, new content will be added, and others will be taken away.

Within this post I’ll be tackling a topic very dear to our hearts: Making gold off Cataclysm. There’s many ways to do it, but here are my suggestions:

The best way to make money in Cataclysm is anticipating the changes that will cause item prices to go up (and avoiding items that will go down as a result of Cataclysm). Below are a few categories to take a look at to maximize your earnings when Cataclysm hits on December 7. But before we go there I want to encourage everyone to avoid the inflation bat!

Avoid the Inflation Bat!
What is the inflation bat? Well every time Blizzard has raised the level cap there has been major inflation in the game. Those that played back in “Vanilla” WoW will remember that you were amazingly rich if you had anything north of 1000g (now you can buy that much from the Chinamen for like $2.50). In BC the amount of gold available to players went up due to the increasing gold dropped by mobs and given by quests. It got worse when Blizzard implemented Daily Quests to the game, making it easy to get 100g+ by just doing a handful of quests. Then, it progressed with Lich King and will again wreak havoc on the economy once Cataclysm comes out.

Perhaps the best thing you can do to prepare for Cataclysm, is to avoid the inflation bat the best you can. How do you do that? Well, you have to find the right items to “invest” your gold in until after things settle down. By buying items that will increase in value in Cataclysm, you’ll be avoiding the inflation that will take your liquid assets and shrink them just because they’re liquid. Think about it this way, if you have 50k gold right now and just sit on 50k gold for three months you’ll have 50k gold (while everyone else will be surpassing you because of inflation). But if you have 50k gold right now and invest a good portion in goods that will increase in value come Cata, you could have exponentially more than 50k gold in three months.

It’s cool to have the gold cap on multiple characters for looks but practically it makes little sense because inflation will make that gold increasingly less valuable. I recommend that you keep some liquid assets (gold) because you’ll need it to buy goods you’ll need or pick up some sweet deals you run across, but most of your gold would be better served invested in goods that you can sell for a profit later. Also when you go to sell these items later mark them up! For instance, let’s say a stack of Copper Ore goes for 10g right now. In Cataclysm, that Ore needs to be priced at 15g + to compensate for inflation and the increased amount of gold in the server economy.

The key to avoiding the inflation bat successfully is finding the right goods that you know will increase in price. Investing in items like Primordial Saronite will be a bad investment as the value in Cata (and in the coming weeks) will tank tremendously. Below are a few areas where I would recommend you invest your gold in for the next couple months or so. It’s certainly not all the goods that should increase in value but here are a few.

Categories to Target

* Mats
Two new races (and new class/race combos) added to the game means all kinds of new characters running around on our realms. This means that materials for professions like Blacksmithing, Leatherworking, Enchanting, Tailoring, Jewelcrafting, etc. will skyrocket in demand. The risk to this investment is small, but the payoff will be smaller than some other investments.

* Greens turning into Blues
There are a handful of items that are currently Green that will be changing to Blue. I know Cold touched on a few of these items already. (Refresh your memory about Twink BoE gear changing from green to blue).  As dumb as it may sound, these items will increase in price if only because of the item quality (many are getting buffed as well). Don’t believe me? Remember when the very rare Hyacinth Macaw changed in item quality from White to Purple? The price skyrocketed while nothing changed on the item itself. This is a very safe investment, with a descent return on investment.

* Enchants/Glyphs/Gems/Patches
With all the new characters running around, created item enhancements will also increase in demand with Cataclysm. Also, this expansion is also being called a Rebirth to Twinking by many (including myself) so you should see many twinks running around post-Cataclysm looking for these goods. The risk to this investment is also pretty small, but I believe the payoff could be a bit higher than other investments (especially for items in high demand by twinks).

* Leveling items
Everyone assumes that leveling Blues/Purples are worthless these days and in Cataclysm due to BoA’s. This is not true! I make most of my money these days just buying and selling these items. The reason why it’s wrong is that a lot of people like to have good gear at their level and don’t understand it’s almost always a waste of money. They fall into the ill-fated logic that having good gear upgrades all the time will mean that I’ll level exponentially faster. Those of you that have been around a while know that gear helps but it’s usually not worth the gold (but don’t tell our potential customers that!). In addition, there’s a lot of people that don’t have BoA’s still so all slots are still profitable. With this method, try targeting items that are clearly intended for melee classes that also have Spirit on them (as the Spirit will be changed in Cataclysm to a more useful stat making them more useful and more valuable). Also there’s always people that see Blues/Purples and just buy it because of the item quality thinking it’s an amazing item. The risk to this investment is a bit higher, but the payoff for the right items will be high.

* Twink items
There is certainly some overlap between leveling items and twink items but the big difference is the price twinks will pay for items that are Best in Slot. I’ve seen twinks pay 10k+ more for 1 stat so they make sure they’ve got the best they can get. The scary thing is that there’s a lot of changes happening to twink gear right now and all the stats on Wowhead Beta, the Beta, Armory, and MMO-Champion appear to be inconclusive on what’s really happening. Many items that are currently are BiS are not going to be BiS in Cataclysm which is good if you are able to target the new BiS items and avoid the ones that will no longer be BiS. The risk to this category is high, but the reward can be very high with the influx of twinks that I think we’ll see post-Cata.

Monopolies
Another way to increase your ROI (return on investment) is to create monopolies with other players. I know there are different stands on this issue and I’ve even heard stories about people getting banned for doing this. There is nothing in the Blizzard ToS that would make this illegal (though very clearly illegal in real life) and I’ve never heard from Blizzard when I’ve done it. The way you do this is get a few buddies together to invest in similar items and make an agreement with all of those buddies to set your prices at the same when Cataclysm hits.

This works best and is generally foolproof with items that will be in very high demand. I’m disappointed that there are no new professions with this expansion because that’s the easiest way to create a monopoly by targeting the raw goods needed to level a new profession. I made a killing off monopolies the last two expansions by targeting ore and gems when BC came out and herbs with the last one. I was crossing my fingers that archaeology may require some raw goods but that will not be the case unfortunately.

Still there are areas where monopolies will always be possible. Find people you trust that are motivated to make gold (and have some capital to work with) and you’ll be good to go. Don’t freak out about the undercutters because if you pick the right area of the economy, the demand will far outweigh the supply that undercutters are able to sell.
Wrap-up
I hope these suggestions will help you to make a killing off of Cataclysm. I know I’ll be raking it in within the next few months and can’t wait for the big day. If you have success stories or your own suggested categories to target in preparation for Cataclysm please leave a comment. It’s an honor to blog for you guys. Thanks Cold for the invitation!

Cheers!

-Ink

Be sure to check out other great posts by Ink:
Inkobah's Guide to Auctioning
Cataclysm: The Rebirth of Twinking Part 1
Cataclysm: The Rebirth of Twinking Part 2