Inflation Guide (please CHECK THIS OUT)

[Sofisticated Newb]

Hello and welcome to TEH INFLATION GUIDE. On this thread I will try to make clear what an inflation is and try to answer all the questions you might have about it, as well as stating and updating the prices of the items affected by it.

1- Intro
2- What is Inflation?
3- FAQ
 

[Sofisticated Newb]

[ Message temporarily off-line ]  

[Sofisticated Newb]

FAQ

Im questing for a (insert 03 item here). Should I quit my quest?

NO. If you are really questing for it go on as you were before. We dont belive this high prices will stay for long. Dont go desperate or sad because you can still get your item if you put enough effort on it (even if it kept the price it currently has).

Did this happend before?

YES. Many times.

I have an OMG that I quested for an year, should I sell it now that its price is high?

Well, if you quested for it you have to know selling it now is a risky thing to do, however if you are patient and you want to risk it it is a good time to sell it save the pure and buy it back when its price goes down again.

When will it be over?

No one knows that. I can tell you what i saw in previous experiences but its not certain.

If you have any question feel free to post it on this thread and we will try our best to answer.  

[pandiebun]

Well explained :B

 

[IchigoKawaii]

Pandiie

Well explained :B

it's really great! ^^
I knownow!  

[[.digital.]]

thats why i decided not to quest 03 stuff  

[jak6623]

[.digital.]

thats why i decided not to quest 03 stuff

same  

[Sinesthera]

But aren't there more members now who were never on when it came out thus demands gone up? I know false inflation is a problem... but it does go back down after a while and if your questing you will know the standerd price and what its actually worth.
I'm questing for well the golden laurels and I've seen the price raise over 50k in a week and the price never went down. Now inflations hiting it again up to 220k. I know if people stopped buying it then it would go down but people still want it.  

[Reporter]

I'm a bit skeptical about the prices eventually coming back down. More users are registering faster than people who are quitting Gaia, and more of them are going to want to quest for a specific look - Angelic, for example - that requires some pretty old items. Anglic Staff, for example, went from something like 20k to 900k, and I don't think it's even going to come down.  

[Mr. Sam]

You're wrong about something very basic.

The prices of a Gaia item really is a function of three things - supply, the number of users, and the item's popularity. The last two make up demand.

The supply of OMGs is fixed. We have been promised that no more OMGs will ever be created - with very minor exceptions.

The number of Gaia users is growing exponentially. It won't continue forever. Sooner or later it will level off, and eventually decline. But right now it's exploding. If the number of buyers increases exponentially, and the supply is fixed, it follows that the price of an OMG will increase exponentially.

The third factor is popularity, and if you watch the markets you'll see individual items come in and out of fashion. OMGs might rise in price before Haloween, for example. But this does nothing to change the basic trend.

It follows that inflation is permanent - at least until Gaia goes into decline, and is replaced by the Next Hot Thing. You do your readers a disservice by telling them prices will soon come down. Prices will only come down if lots of new OMGs are created - if for example, they go on sale at the Hat Rack - or if the number of users suddenly plummets. We don't want that, do we?  

[Sofisticated Newb]

Your theory is correct in some ways. But I have seen many inflations going on the last 2 years and they always came down after a while.
Im not saying that OMGs will be 5k but that they will come down from one million? YES i belive so.

Devil tails hit the mark for 5.6 millions in the last inflation and before this one they were barely 3m  

[Ransu]

Mr. Sam

You're wrong about something very basic.

The prices of a Gaia item really is a function of three things - supply, the number of users, and the item's popularity. The last two make up demand.

The supply of OMGs is fixed. We have been promised that no more OMGs will ever be created - with very minor exceptions.

The number of Gaia users is growing exponentially. It won't continue forever. Sooner or later it will level off, and eventually decline. But right now it's exploding. If the number of buyers increases exponentially, and the supply is fixed, it follows that the price of an OMG will increase exponentially.

The third factor is popularity, and if you watch the markets you'll see individual items come in and out of fashion. OMGs might rise in price before Haloween, for example. But this does nothing to change the basic trend.

It follows that inflation is permanent - at least until Gaia goes into decline, and is replaced by the Next Hot Thing. You do your readers a disservice by telling them prices will soon come down. Prices will only come down if lots of new OMGs are created - if for example, they go on sale at the Hat Rack - or if the number of users suddenly plummets. We don't want that, do we?

You think we don't know all these things? We have been on gaia and in the exchange for a long time now. We exchange frequently with items in the exchange and marketplace.

About the prices droping only time will tell. I don't think any price drop happens soon, but I have seen that it does happen over time.

The april 2005 inflation brought many things up, including the OMG hat which you choose to talk about. It brought them up to about 900k at one point. Then over some months they went back down to around 600k. Now they are going for around 1.2 mil. Will they come down? Only time will tell. bUt from going on past experiences they will come down a bit eventually.  

[Gable]

Ransu

Mr. Sam

You're wrong about something very basic.

The prices of a Gaia item really is a function of three things - supply, the number of users, and the item's popularity. The last two make up demand.

The supply of OMGs is fixed. We have been promised that no more OMGs will ever be created - with very minor exceptions.

The number of Gaia users is growing exponentially. It won't continue forever. Sooner or later it will level off, and eventually decline. But right now it's exploding. If the number of buyers increases exponentially, and the supply is fixed, it follows that the price of an OMG will increase exponentially.

The third factor is popularity, and if you watch the markets you'll see individual items come in and out of fashion. OMGs might rise in price before Haloween, for example. But this does nothing to change the basic trend.

It follows that inflation is permanent - at least until Gaia goes into decline, and is replaced by the Next Hot Thing. You do your readers a disservice by telling them prices will soon come down. Prices will only come down if lots of new OMGs are created - if for example, they go on sale at the Hat Rack - or if the number of users suddenly plummets. We don't want that, do we?

You think we don't know all these things? We have been on gaia and in the exchange for a long time now. We exchange frequently with items in the exchange and marketplace.

About the prices droping only time will tell. I don't think any price drop happens soon, but I have seen that it does happen over time.

The april 2005 inflation brought many things up, including the OMG hat which you choose to talk about. It brought them up to about 900k at one point. Then over some months they went back down to around 600k. Now they are going for around 1.2 mil. Will they come down? Only time will tell. bUt from going on past experiences they will come down a bit eventually.

I completely agree with Ransu, and am not even going to bother making a statement.