The Cost of Buying Low and Selling High

Have you ever wondered what will happen to a market if every day you are purchasing at X price and reselling at a higher price?

Look at eternal earths on your server. Many, many players know that you can make cheap items for disenchanting through the clever use of eternal earths, and thus these players are purchasing the earths if they are worth less than 2 infinite dusts. What happens to the price when this happens? Eventually, the price of earths rises slowly but surely to a value above being worth it to disenchant.

This happens in cycles, as people stop buying the earths because they can no longer disenchant for profit and the price will eventually drop back down to a level that enchanters will purchase at again.

Do you already see how this cycle could be valuable to you? Let's say you purchase 100 eternal earths for the purpose of disenchanting. You turn 60 of them into stoneguard bands and then disenchant. The other 40 you hold on to in your bank while you wait for the price of earths to rise. A week or two later the price of earths has gone from 5 gold to 10 gold per eternal. You post your 40 slowly in stacks of 1 and only repost when the couple you have up on the auction house get bought out. Instead of making 6 gold on average per two earths you are making 10 gold.

Infinite prices dropping can also cause earths to drop, this creates a great buying oppurtunity as less people will buy the earths and cause a surplus. Paying attention to the way markets react to each other is essential to being a good auctioneer.

For more info on farming crystallized earth, you should check my farming videos:

9 comments: on "The Cost of Buying Low and Selling High"

  1. OK I have a enchanter guy and a jc alt... for that stoneguard bracers thing.. do i buy if 2 eternal; earths are less than 2 infinite dusts.. or just one eternal is since it takes 2 earths it make..

    btw marcko i love this site! thanks

  2. There are much better more profitable uses for 2x Eternal Earth than turning them into a Stoneguard Band to D/E.

  3. Care to share? Other alternatives I can think of are shadowmight bands or eternal belt buckles.

  4. JC's get green gems by the truckload when prospecting. There are plenty of 3 crystalized earth/water/fire/life and 1 green gem items that can be DE'd and the mats for these items are even cheaper then stoneguard bands.

  5. @Marko

    Buy Orange, Red, Blue or Yellow uncut gems from AH (or as previous poster said prospect them) and combine them with 2 crystallized earth to create jewellery which turns into 1-2 Infinite Dust or 1-2 Lesser Cosmic Essence when disenchanted.

  6. Oh yeah I know but you said eternal earths*

  7. WOOSH I forgot about using eternal earths for the lesser JC greens.

  8. I greatly prefer the Shadowmight Band (1 earth + 1 shadow) to the Stoneguard band, mostly because it seems like eternal shadows have completely crashed of late. Earths might be going for anywhere from 5-9g, but I rarely see shadow above the 3g range, and more often it can be bought for 2g a piece. Thats a range of 7-12g to make one shadowmight vs 10-18g for a stoneguard.

  9. Wrathskellar said... May 27, 2009 at 10:09 AM

    One of the first ways I used the AH for profit was the JC/DE method, but I have not been able to do so for quite some time now. On my server, the price of the Earths and the price of the DE mats have hovered at nearly equivalent price for several months. There is not even enough difference to cover the auction house cut. I still see chat messages near the AH as people craft the JC items, so I can only assume they have found cheap suppliers. The prices rarely fluctuate either.

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