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Investing in Gems

gems market value economy

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#1 MrAmbiguous

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Posted 28 October 2012 - 12:09 AM

Hello everyone,

This recent event made me think of how the value of both gold to gems and gems to gold have gone considerably higher than normal, and continues to climb.  Inflation in the economy means more gold will be sunk in order to get the same amount of gems, and vice versa.  I admit that I am very poor when it comes to economics (something never really pushed upon me through university), so correct me if I'm wrong, but...

Would it seem worthwhile to invest in gems now, to reap the benefits in a month/in the future later?  If I were to spend 100g on gems, is it foreseeable for profit to ever be made on such an investment?  While our market fluctuates daily, I am seeing this specifically as a "static price" boon -- as in, a price that will not change (such as Tier armor) would only benefit the player who invests down the road, but it will not benefit the player who plays the Black Lion Trading Company.

Thoughts?  Input?  Again, I admit I am ignorant toward the economy in this game and understanding.  Layman's terms if you can to correct me, please.

#2 RabidusIncendia

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Posted 28 October 2012 - 02:54 AM

Gems investment is always a good investment.  the question is usually if there are better investments, and there usually is.  But it's certainly safe.
Fun while it lasted.  I guess.

#3 evilbob

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Posted 30 October 2012 - 02:14 PM

If you have 100g to invest then you're not THAT ignorant of the economy.  :)

There have been many, many threads asking this same question and the replies are the same.  It has long been suggested that there is no reason the price of gems won't continue to rise, slowly, over time.  So in that respect, the risk is relatively low.  However, as the above poster said, there may be better investments because the time it takes for gem prices to rise is slow.  Of course, like any investment it's not 100% guaranteed because unlike TP prices, there is a guy at Anet who can manually adjust prices at a whim:  so technically there's always the possibility of something happening that is unpredictable.

#4 JONO51

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Posted 30 October 2012 - 02:59 PM

The main things to take into account when you're holding gems are:

1 - Its going to greatly diminish what you can do on the TP. i.e. if you put 70g into gems and then a great opportunity comes along you can't put as much into it. If you wanted to then....

2 - Big tax when going from gems-> gold (~30%) & fairly slow price increase. This will heavily impact the amount you make. To put it into perspective, if I'd put all of my money into gems back in September (15g at the time) at the then rate of 28s/100gems, then I would only have doubled my money (current gem->gold is only 60s/100). Instead I've made that amount many times over via the TP. If you did want to take money out for something, then you're looking at a 2 week wait just to break even on a gold->gem->gold trade.

The only way I'd put a significant amount into gems is if I was going on an extended break, say to wrestle alligators in the Amazon. That way my wealth will keep up with inflation relatively well, considering it would would require zero effort. There is one other scenario in which money can be made in the short term. If you check out the gem price charts on gw2spidy and look at the price a week before Halloween started and the day of the update, you can see that if you had bought gems around a week before the Halloween event started and sold them during the day 1 spike as everyone rushed to get new stuff, you would quite easily have made a 30% profit on a gem investment. I wouldn't be surprised if this sort of increase holds true for other events/content releases too, and since you'll break even after around 2 weeks anyway as mentioned, its definitely worth looking into imo.

Edited by JONO51, 30 October 2012 - 03:02 PM.


#5 Bmub

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Posted 30 October 2012 - 05:32 PM

View PostJONO51, on 30 October 2012 - 02:59 PM, said:


To put it into perspective, if I'd put all of my money into gems back in September (15g at the time) at the then rate of 28s/100gems, then I would only have doubled my money (current gem->gold is only 60s/100). Instead I've made that amount many times over via the TP.

What kind of trickery did you use?
I'm sitting @ 120g and totally don't know how to invest it (the smart way). :/

#6 Duplicated

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Posted 30 October 2012 - 07:37 PM

View PostBmub, on 30 October 2012 - 05:32 PM, said:

What kind of trickery did you use?
I'm sitting @ 120g and totally don't know how to invest it (the smart way). :/
Buy low, sell high, gg.

As to which item specifically, no one is going to tell you that lol. You need to find one out for yourself.

#7 Knuckledust13

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Posted 31 October 2012 - 02:58 AM

View PostBmub, on 30 October 2012 - 05:32 PM, said:

What kind of trickery did you use?
I'm sitting @ 120g and totally don't know how to invest it (the smart way). :/

He camped the TP 20 hours/day like most of the commanders, who curiousy do everything but play WvW, but that is another subject.

Also, ArenaNet never resetted items and gold gotten from early exploits, which greatly favored those who abused said exploits. Instead, they banned a few just to make people think they solved the mess. Nevertheless, most did not got banned and nowadays control the circulation of precursors, lodestones and even ecto.





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