Why is the Wow Token price increasing so rapidly? Just half a month ago, I bought it for 6.7-7k gold, and now it’s already worth 9.1k. It feels like in a month, there might not be an opportunity to purchase a token and continue playing.
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Various reasons, like new (incoming) patch(es), the restriction on WoW token that greatly increased demand reducing supply and so on.
Well, the restriction definitely greatly increased the demand but it did not reduce supply. There’s no reason why less people would want to sell tokens on the AH right now than before the change.
Simplified example, there are 10 wow tokens. If it greatly increases demand by buying 8 tokens it reduces supply, now 2 wow tokens remaining. Then if the supply comes back with 4 tokens the total is at 6 tokens. Not recovering to its 10 previous tokens.
Ergo, if the demand does not match supply but is > price goes up, if reversed < it goes down if it matches it stays stable’ish.
There is a reason, if they think they can sell for more gold.
Data taken from Classic WoWtoken App and may be inaccurate as a 3rd party site.
However I did more checking and after the announcement of the Restriction of WoW tokens the first peak the price stabilised relatively and is only about 150g above average.
The only thing I could see that happened around 17/18 NOV when the price spiked is that Blizzard announced that they would drop an ICC buff. Probably more gold coming in through WoW tokens for GDKP runs?
Understood. Pity of course.
Supply is the amount of a resource that firms, producers, labourers, providers of financial assets, or other economic agents (in this case, players) are willing and able to provide to the marketplace or to an individual. A reduction in supply would only happen if players stopped placing tokens on the auction house (for example, if they expect them to go up in price in the future or if 3rd party websites made their gold cheap enough to convince some of those who only buy tokens for safety). At this moment, there is no reason to expect further token price hikes until Cataclysm devalues gold, but waiting for that won’t actually let anyone make a profit.
EDIT: I think you might have wanted to say “increased scarcity” instead?
Why do you think that the Cataclysm will devalue gold?
Pretty much every expansion devalues Gold. There are many reasons. Quests give more and more Gold. There are more and more Dailys to do. More and more Dungeons/Raids can be done Solo. Stuff like that.
1000g in Classic where worth way more than 1000g in WotLK
Mobs will be dropping more gold, trash will be vendoring for more gold, players will be stronger and able to farm gold quicker, quests will be rewarding more gold, etc. Everyone will end up having more gold in their pockets. In effect this will increase prices of all player-supplied items or services, making gold essentially worth less than now.
For example… let’s see. NOTICE: all values in this example are theoretical and do not reflect actual service and item prices on any realm or website.
Let’s assume that player A is selling dungeon boosts. Right now, he is charging, for example, 200g per run. For every 10 runs he makes, he has enough gold to make a minimum bid on an item in GDKP.
Player B is organizing GDKPs. He is making 10 runs a week, earning him enough gold to sell on a 3rd party website for 500EUR.
But suddenly Cataclysm launches, and everyone on the realm, every single of the tens of thousands of players, gets “richer” by looting more gold. Doesn’t seem important, right? But it is.
All of that gold means that by having more gold players would be less likely to buy it for real money, so player B needs to lower the price on his website to make up for the loss of customers and sell more gold to keep his standard of living. To be able to sell more gold he needs to earn more from his GDKPs, so he increases the minimum bid.
Now player A no longer can place a minimum bid for his 10 dungeon boosts, so the best thing he can do is increase his price.
These are all part of a natural chain reaction in real life economy called inflation. Prices of everything increase, so in effect gold is worth less, because you need more of it to get a dungeon boost or to make a minimum bid in a GDKP.
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On the other hand, I will have the opportunity to buy 310% flights on twinks.
Look at it this way, it’s great if you are selling one.
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