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Monday, June 27, 2011

4.2 Stockpile? Blasphemy 'round these parts!

You know what I hate?  Patches.  Right when I get all settled in and into my groove they come along and patch the game and there's a whole new market to learn or all new nerfs to adjust to and all that stuff.  QQ   Of course, if the game never got patched it'd grow boring eventually, but I'm usually that person who hates change and perhaps that's why I refuse to get serious into stockpiling and speculation. 

Allow me to show you my 4.2 stockpile!



I've never been one to stockpile and I probably never will be.  Even when I do anticipate a demand (Glyphmas, for example) I will almost always understock myself.  I hate huge stockpiles.  I think they are definitely an asset for those who enjoy that style of gold making and can show brilliant results, but I do not like staring at a bunch of inventory that is gathering dust instead of gathering income.  I would rather sell my Inferno Rubies now for 160g and then have that to reinvest to rinse/repeat ad nauseam than to hold onto it because I'll probably be able to sell it for 250g in a few days/weeks/months.  I want my inventory to work for me now, not later.

Let's say you have 100g to your name.  You could invest this gold in Pyrite Ore, assuming that epic gems will come from it. Let's pretend that 4.2 drops in August as a random month I have chosen.  So now you have a stack of Pyrite Ore and no gold for all of July.  When August comes you may be able to quadruple your money and sell an epic gem out of that stack for 400g. That's a great return on investment; but at the cost of an entire month without that investment capital.

Now let's take that same 100g and put it into a stack of Pyrite Ore.  Prospect it on the spot, shuffle items appropriately, come out with a conservative 120g.  Now do it again. And again. And again.  Within an hour you can be up to 400g. You'll have net the same result of stockpiling but faster, with less uncertainty, and have a whole month to continue doing this while that other guy's sitting on his Pyrite Ore stack and hoping for the future.

Granted, stockpiling is not usually done with all of your capital, but with what you can spare without crippling your other gold making ventures, but I feel the point is the same: I would rather use my gold now for guaranteed income than tie gold up in the prospects of future markets.

I hate uncertainty and I hate stock gathering dust and that is why I am not a stockpiler.

All of the gems in the above image are the result of yesterday's shuffling and will be cut and sold off by tomorrow and I will continue in this manner until I get bored.   Have I lost out on income from lack of stockpiling? Definitely!  I was woefully understocked for Glyphmas, for example.

But am I still about to hit a million gold. Yep.  Stockpiling is great for those who enjoy it, but I guess I just don't see why a lot of people seem to think stockpiling is nearly mandatory for anyone making serious gold.

Do you stockpile?  Do you consider it something all gold-makers should do? Why or why not?

19 comments:

  1. Your right that stockpiling isnt mandatory, But which such little inventory, what are you going to do when they sell, and supply of ore is low? make no gold as you have no mats. Thats where the stockpile comes in handy. They do say a bird in the hand is worth two in the bush but I would rather buy mats earlier and sell for longer. All in the name of selling/profiting more.

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  2. I look at stockpiling as a way to make gold making more interesting. It's different to the daily gold making grind.

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  3. @anaalius: Definitely true; I felt like a tool when I ran out of glyphs about 4 hours into 4.0 or whatever patch number Glyphmas was.

    I kick myself many times when I run out of stock, but at the same time, it's all good in the end for me. But I fully understand what you mean, if you want to constantly keep selling stockpiling is definitely important.

    @Sinshroud: True; the most "fun" and happy moments I've had was when I made huge jumps in profit after big patches, something that could definitely have been increased with a stockpile backing me up.

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  4. I also stockpile quite a bit especially when it's almost for certain (based upon past trends) that prices will skyrocket. I'm not only stockpiling the gems, but also Elementium Ore on my alts (in the event I run out of gems early, I can prospect some more).

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  5. I am not much of a stock piler myself. I pretty much just grabbed as many inferno rubies as I could, and will continue to shuffle and sell gems as I normally do.

    Plus, I am only about 20k over 1 million and dont really want to go below it again.

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  6. I stockpile some things. For example, when mining for elementium ore, which I prospect, cut and sell right away, I've been keeping whatever pyrite I get for when 4.2 hits.

    Doesn't cost me anything, and I will see a decent profit in the future for a bit of patience.

    Paying for a lot of things to possibly make a lot doesn't interest me though. I tried it in wrath and it failed miserably :(

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  7. Be sure to unload those zephyrites fast Faid.

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  8. @bigtruck01: Yeah, have vendored all but two stacks per faction since then. Figure I want a small stockpile for that odd week that it's Nibbler No 5 days in a row. xD

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  9. keeping an inventory of goods or 'stockpiling' is a luxury that rich players get because it actually puts your gold to work for you.

    If you have a lot of gold it's so easy to invest in guaranteed price jumpers and make an effortless return with just time/planning.

    I guess the difference between your ways of making bank and most other successful goblins is you're more blue collar with a creative day-to-day mindset on how to make gold whereas a lot of us like to wear our white collars and stick to our get-rich-quick schemes >.>

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  10. Think about it this way, if you invested 400k of your gold intro truegold, would that effect your day-to-day earnings? Doubtful. Stockpiling makes the money when you are using otherwise stagnate gold. The extra gold isn't helping you any short term, might as well make gold with it long term.

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  11. I think perhaps the biggest issue with stockpiling is that there is a big risk. I don't see you as a risk taker Faid, and so i wouldn't assume you to do well with stockpiling. I am much the same; stockpiling is a gamble I'm not willing to take. From what I've seen on other blogs recently, everyone is stockpiling.. That would mean there's a high chance for more supply than demand. You could sell your rubies now for 160g, or you could wait and risk selling them for only 60g after the patch, once the market is flooded with all these stockpiles mats.
    With some item recipes taking about a month to unlock, stockpiling seems pointless to me. Why stockpile when by the time you can sell/use the mats, the market has already been flooded with boe raiding gear?
    Pretty stupid idea in my eyes.

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  12. I am also a fan of the 'just in time' inventory method. Especially with Glyphs which I just started in. With JC I ended up stocking on various gems just due to all the prospecting (ug, just finished the 600 stacks left) but nothing like some folks have done. I would say the only gamble I took was 1 GB Tab filled with pyrite ore. If a new gem comes from it, then I have plenty and if not, I can still prospect and sell profitably (except for those darned ocean sapphires - hate em). I don't see too much risk there.

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  13. I also should add something that I'll be looking for; today (for US) I assume loads of prices will be high on mats. Perhaps the undercutters will come hard and fast and I'll be able to pick up a bunch of low hanging fruit to hang onto until folks start getting the new patterns and then unload those.

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  14. Well one thing in Faid's favor is that she theoretically has more working capital. She can technically work at capacity all day long though I imagine her 600k gold cannot be completely in use at any one time, that is a lot of clicking. Another point is inflation. The value of that 1g buys far less in 4.3 than it does today, and even less in 5.0 I realize the value of hoarding for this patch when you can read the notes but do not see the logic in stocking Pyrite that may not ever produce epics.

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  15. I am not much into stockpiling either. This patch was my first quasi-attempt at stockpiling at all. I attempted to craft and bank as many red/orange/purple gems as I could as well as maelstrom crystals, heavenly shards, and celestial essence. I ended up with somewhere in the vicinity of 100-200 of each gem and practically no enchanting mats.

    My business' main focus is enchanting, so I typically would only buy mats as I needed them unless the price crossed a threshold I set in my mind. I would find mats at a price I liked, then the price would rise and eventually used them before I could bank any more.

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  16. To me stockpiling has 3 purposes

    1. Separation of time spent on activities and further separation that creates organization. I buy mats and stock them up, activity complete. New activity use stocked mats for crafting. About a weeks worth is the goal. 3000 hypnotic dusts and 1000 GCEs.

    2. long term investments for fun and profit... going long on Elementium geods.. like a year plus.. the price will go up as farmers move on. Or not so long on pyrite...

    3. To catch the low prices and further lower my costs to craft and increase profits... Stocking up throughout 7-10 days for a 7-10 day stockpile.. you continuously catch low prices rather its on daily cycles of mats on the market, or the weekly prices...

    Being able to log morning and evening to check prices on your most common mats throughout a week... Its wildly different.. You may not feel like 3 gold or 4 gold per Hypnotic dust is that big of a difference, but multiply that times 3,000 and then the 25-35 gold difference on GCEs... also times 1,000... it adds up quick how much more you can make if you are in a volume market...

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  17. "You know what I hate? Patches. Right when I get all settled in and into my groove they come along and patch the game and there's a whole new market to learn or all new nerfs to adjust to and all that reading there stuff."
    I Stopped because I had to post this: FAID, WILL YOU MARRY ME?!?

    I feel exactly the same way, I hate stockpilling, I hate having to post 48 hours auctions the night before patch hits, I hate the Lag/Disconnect/Instance server down/battle.net offline/ broken add ons and other stuff we gain on patch nights...

    Well, I just had to vent it out...

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  18. "You know what I hate? Patches. Right when I get all settled in and into my groove they come along and patch the game and there's a whole new market to learn or all new nerfs to adjust to and all that reading there stuff."
    I Stopped because I had to post this: FAID, WILL YOU MARRY ME?!?

    I feel exactly the same way, I hate stockpilling, I hate having to post 48 hours auctions the night before patch hits, I hate the Lag/Disconnect/Instance server down/battle.net offline/ broken add ons and other stuff we gain on patch nights...

    Well, I just had to vent it out...

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  19. I wouldn't do now after 4.2 the same shuffle + inscription and DM that I did before 4.2.

    When the content is on by and the price are lows, it's a good time to invest some of your gold and also some of your time.

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