Quote:
Kiss in Digital
Basics:
There is a bit of abstract involved with this, you'll need to grasp the concept of what we're doing here if you're going to understand how to do it successfully.
Pure and simple, the basic concept of what we do is this: We buy an item for low or cheap prices, and sell when the price increases, thereby earning a little extra than what we put in which is called "profit."
I personally define vending as buying and reselling "quickly," which means no holding of item for more than a short time period. It becomes investing when you hold the item for a longer time period before selling.
It becomes hoarding when you buy more than one of that same item and hold them while waiting for the price to increase so you can sell for profit.
I don't believe for a minute anyone is "bad" at vending or hoarding, they simply made the wrong choice. There's no true skill involved here. Some may be able to predict market changes but it isn't necessary.
Glossary:
Capital: Gold on hand available to be spent immediately. Meaning "pure" or not in the form of an item one needs to sell to have the gold. The amount listed in the upper right corner on the Gaia screen next to the gold coin (or the part of that amount one has set aside for investing.)
Vending: Buying and quickly re-selling. This means either the marketplace or exchange. The time period in one's possession defines it as vending, not where one buys or sells.
Investing: Buying an item and holding it for a longer period of time while waiting for the price to increase.
Hoarding: Buying more than one of the item one is investing in.
The ultimate purpose of hoarding is achieving a goal. Be it an Angelic Halo or other 03 item, or an increase in overall value, some end result.
Obviously, this end result will change each time you achieve a goal, and that's absolutely okay. However, I firmly suggest having an end goal in mind to motivate you.
Supply, Demand and the Price: (added 01/16/10)
Basically, the higher the price, the slower the price increases. Like I mentioned: high demand + low supply = high prices. However, as the price gets higher, the demand gets lower because less people feel they can afford it/are willing to work for it/ etc.
Now something may come along like a complimenting item that causes a jump in demand. Example: When kitty slippers came out, the complimenting plushie (kiki and coco) jump and at one point their prices had doubled. Problem with that is, the price did eventually drop back down, almost to the original starting point. Also, for MCs, there's no way to predict anything that will cause a jump in demand after the supply is cut off. The price goes up in accordance to the present demand and that's it. As such, once the MC gets to a certain price, unless the intrinsic demand is high, they plateau and then increase slowly. Devil tails have high intrinsic demand: they go with 90% of avatars created, they're simple, black, and pixelated well. Even the copy cat tails did not diminish the quality (and therefore demand) of this item, and that is why the price still increases on a regular basis.
On the flip side, even though they are a popular item, I don't believe Silver Laurels have very high intrinsic value. If you've watched Golden Laurels, especially compared to Horns of the Demon (again, high intrinsic value) they increased rather slowly. Right now, like most 03s and now 04s, they tend to be increasing mostly due to the age. Silver Laurels, once they reach a certain point, will be the same.
Point being, once an MC reaches the plateau of even demand to supply due to price (trust me, you'll see it) it might be time to let go in favour of newer, cheaper items that still have higher demand.
Obviously EIs are already high, so naturally one would think that demand would be low. Because the item evolves, each time it does, the demand is affected. If you're watching Hidden Aces, they seemed to mostly stay within a certain range and with new, fantastic evolutions, the price has pretty well tripled from it's initial starting price. Again, once an EI has stopped evolving and been removed from the shop, there is no way to predict anything that will cause an increase in demand. All gens will end up in a similar price range (often within 50k of the other prices) and then increase slowly depending on supply v. demand. Lower priced items have minimal demand and they have been released in RiGs which keeps the price down. In my experience, there must be high intrinsic value to sell at the list price. I recently sold an Alruna for a decent price, but the Death Whisper and Fremere's took a long time/had to drop the price some.
What this means for you is that the best time to hoard an EI is while it's still evolving. Once complete, if you haven't already sold during a good evo (which I do suggest) you probably don't want to hold too much longer. Use Brain's proverb: "Why wait for higher profit that isn't guaranteed to happen when there is good profit to be had now?" Not every EI has a Noel's Gift or Reve quality finale. In fact most don't. If you can't risk a bomb of an ending (see Lyndexer) then sell when you've made profit.
Again, though RiGs are high, they have a lot of value - for the first few months of release. And I do mean release, not "after they've left the shop." The value of course extends after that point, but if it's a not so good RiG, it may take too long to go up to a good price (see Quackers.) A good RiG does increase fairly decently (see Reflections and Trickboxes) but as we have learned, the items (and the box itself) does get released again. Increase in supply balances the demand and keeps the price low.
This is why we stress to not hold RiGs for longer than maybe one or two RiGs after it leaves the shop. A good RiG you can hold until two or three new RiGs have come out but the risk of release and the price will make them harder and harder to sell. I had trouble selling Reflections in December even before Super Prize came out. Mind when selling that each time a new RiG hits the shelf, most of the items inside older RiGs and the box itself takes a dip. At about two weeks out, the price has stabilized on all items for the most part and that is a good time to sell.
The fact that older RiGs dip may tempt you to hoard them. But as there is nothing we can predict that will cause an increase in demand and therefore price and it is more likely to stay low or even go lower, don't waste your time. Of course, you may have seen other people make profit off an item inside a RiG but it's usually one of the most in demand items and therefore over 600k (usually over a mill really) in price. Unless you can throw that much gold away, do not invest in RiG items. Ever. (Buying one or two for you to keep is not investing.)
-------
I will say here and now, this guild and NONE of the crew ever purchase something with the intent of controlling the price. Naturally, by holding something we are controlling some of the supply. The sheer number of us who actively participate in this "hoarding" means that not even those that buy thousands of the same item can be said to control the supply (and therefore the price) of an item single handedly.
Some may insist I and the rest of us are no better than manipulators but the biggest difference is simple. We're teaching you how to do it as well. By this very movement, and the fact that we take great pains to avoid affecting the price when we buy or sell, means that we intend to let nature take its course and we don't actively force it.
The very nature of a collectible item means that supply will dwindle with time, by people leaving the site, whether by choice or due to the account being banned. Each time there is 1 or more less of that item in circulation. In the meantime, people join the site everyday and have a desire to obtain the item, creating demand. In simple economics, the lower the supply means more demand, which means higher prices.
Of course, we may inadvertently set off a buying or selling frenzy that translates to unnatural prices, which by definition means manipulation. It is not intentional, and it is absolutely not malicious.
There is a bit of abstract involved with this, you'll need to grasp the concept of what we're doing here if you're going to understand how to do it successfully.
Pure and simple, the basic concept of what we do is this: We buy an item for low or cheap prices, and sell when the price increases, thereby earning a little extra than what we put in which is called "profit."
I personally define vending as buying and reselling "quickly," which means no holding of item for more than a short time period. It becomes investing when you hold the item for a longer time period before selling.
It becomes hoarding when you buy more than one of that same item and hold them while waiting for the price to increase so you can sell for profit.
I don't believe for a minute anyone is "bad" at vending or hoarding, they simply made the wrong choice. There's no true skill involved here. Some may be able to predict market changes but it isn't necessary.
Glossary:
Capital: Gold on hand available to be spent immediately. Meaning "pure" or not in the form of an item one needs to sell to have the gold. The amount listed in the upper right corner on the Gaia screen next to the gold coin (or the part of that amount one has set aside for investing.)
Vending: Buying and quickly re-selling. This means either the marketplace or exchange. The time period in one's possession defines it as vending, not where one buys or sells.
Investing: Buying an item and holding it for a longer period of time while waiting for the price to increase.
Hoarding: Buying more than one of the item one is investing in.
The ultimate purpose of hoarding is achieving a goal. Be it an Angelic Halo or other 03 item, or an increase in overall value, some end result.
Obviously, this end result will change each time you achieve a goal, and that's absolutely okay. However, I firmly suggest having an end goal in mind to motivate you.
Supply, Demand and the Price: (added 01/16/10)
Basically, the higher the price, the slower the price increases. Like I mentioned: high demand + low supply = high prices. However, as the price gets higher, the demand gets lower because less people feel they can afford it/are willing to work for it/ etc.
Now something may come along like a complimenting item that causes a jump in demand. Example: When kitty slippers came out, the complimenting plushie (kiki and coco) jump and at one point their prices had doubled. Problem with that is, the price did eventually drop back down, almost to the original starting point. Also, for MCs, there's no way to predict anything that will cause a jump in demand after the supply is cut off. The price goes up in accordance to the present demand and that's it. As such, once the MC gets to a certain price, unless the intrinsic demand is high, they plateau and then increase slowly. Devil tails have high intrinsic demand: they go with 90% of avatars created, they're simple, black, and pixelated well. Even the copy cat tails did not diminish the quality (and therefore demand) of this item, and that is why the price still increases on a regular basis.
On the flip side, even though they are a popular item, I don't believe Silver Laurels have very high intrinsic value. If you've watched Golden Laurels, especially compared to Horns of the Demon (again, high intrinsic value) they increased rather slowly. Right now, like most 03s and now 04s, they tend to be increasing mostly due to the age. Silver Laurels, once they reach a certain point, will be the same.
Point being, once an MC reaches the plateau of even demand to supply due to price (trust me, you'll see it) it might be time to let go in favour of newer, cheaper items that still have higher demand.
Obviously EIs are already high, so naturally one would think that demand would be low. Because the item evolves, each time it does, the demand is affected. If you're watching Hidden Aces, they seemed to mostly stay within a certain range and with new, fantastic evolutions, the price has pretty well tripled from it's initial starting price. Again, once an EI has stopped evolving and been removed from the shop, there is no way to predict anything that will cause an increase in demand. All gens will end up in a similar price range (often within 50k of the other prices) and then increase slowly depending on supply v. demand. Lower priced items have minimal demand and they have been released in RiGs which keeps the price down. In my experience, there must be high intrinsic value to sell at the list price. I recently sold an Alruna for a decent price, but the Death Whisper and Fremere's took a long time/had to drop the price some.
What this means for you is that the best time to hoard an EI is while it's still evolving. Once complete, if you haven't already sold during a good evo (which I do suggest) you probably don't want to hold too much longer. Use Brain's proverb: "Why wait for higher profit that isn't guaranteed to happen when there is good profit to be had now?" Not every EI has a Noel's Gift or Reve quality finale. In fact most don't. If you can't risk a bomb of an ending (see Lyndexer) then sell when you've made profit.
Again, though RiGs are high, they have a lot of value - for the first few months of release. And I do mean release, not "after they've left the shop." The value of course extends after that point, but if it's a not so good RiG, it may take too long to go up to a good price (see Quackers.) A good RiG does increase fairly decently (see Reflections and Trickboxes) but as we have learned, the items (and the box itself) does get released again. Increase in supply balances the demand and keeps the price low.
This is why we stress to not hold RiGs for longer than maybe one or two RiGs after it leaves the shop. A good RiG you can hold until two or three new RiGs have come out but the risk of release and the price will make them harder and harder to sell. I had trouble selling Reflections in December even before Super Prize came out. Mind when selling that each time a new RiG hits the shelf, most of the items inside older RiGs and the box itself takes a dip. At about two weeks out, the price has stabilized on all items for the most part and that is a good time to sell.
The fact that older RiGs dip may tempt you to hoard them. But as there is nothing we can predict that will cause an increase in demand and therefore price and it is more likely to stay low or even go lower, don't waste your time. Of course, you may have seen other people make profit off an item inside a RiG but it's usually one of the most in demand items and therefore over 600k (usually over a mill really) in price. Unless you can throw that much gold away, do not invest in RiG items. Ever. (Buying one or two for you to keep is not investing.)
-------
I will say here and now, this guild and NONE of the crew ever purchase something with the intent of controlling the price. Naturally, by holding something we are controlling some of the supply. The sheer number of us who actively participate in this "hoarding" means that not even those that buy thousands of the same item can be said to control the supply (and therefore the price) of an item single handedly.
Some may insist I and the rest of us are no better than manipulators but the biggest difference is simple. We're teaching you how to do it as well. By this very movement, and the fact that we take great pains to avoid affecting the price when we buy or sell, means that we intend to let nature take its course and we don't actively force it.
The very nature of a collectible item means that supply will dwindle with time, by people leaving the site, whether by choice or due to the account being banned. Each time there is 1 or more less of that item in circulation. In the meantime, people join the site everyday and have a desire to obtain the item, creating demand. In simple economics, the lower the supply means more demand, which means higher prices.
Of course, we may inadvertently set off a buying or selling frenzy that translates to unnatural prices, which by definition means manipulation. It is not intentional, and it is absolutely not malicious.
