More Money - Know your GOLDen ratio

More gold for sale. See how much it sold for after the jump. Er wait... since you obviously know how much it sold for (simple multiplication, folks), I better hook you with a better teaser:

In this post, I'm gonna tell you how to make INFINITE DOLLARS! Read more after the jump!

It sold for 25$, idiots

After the events of this post, I learned a very important lesson: Selling gold on the RMAH never works. Blizzard's price minimum of 2.50$ for 1m gold was just too much money for what gold was worth.

... And then my 10m gold sold.

2 days after that post came out, my gold actually sold. So my lesson really turned out to be: Selling gold on the RMAH maybe sorta sometimes works, if you're lucky.

It's a pretty good deal. After the 15% RMAH commodity fee, this is how much 1 million gold sells for:

2.50$ * (1 - 0.15 fee) = 2.125$ for a million gold

That's way above the actual going price of gold, even if you don't deal in the black market.

For the sake of simplicity, let's stick with the auction house only, and ignore gold botter sites, the trade forums, or anything where trust is required. With that restriction in mind, where on the AH is the most obvious indicator of the proper dollar:gold ratio? 

The answer is in this post.

Find it? No? Since I love you all so much, I'll just paste it here:

There are various ways of gauging the effective $:gold ratio. Because the gold commodity sale is fixed by Blizzard, it is not a good way to indicate the correct ratio. Instead, look at the other commodities. Namely, gems. Radiant Star gems go for 27-30$ on the RMAH, and from 15-20m gold on the gold AH. Because the 15% fee applies to both markets, you only need to divide between the two to get the current ratio, which is around 1.5$ per million gold.

This paragraph is the topic of today's post. Using the information above, you should be able to make infinite dollars (or gold).

Re-read it and see if you can tell me what that technique is.

Infinity dollars

I hope this is worth a Chipotle burrito

We've concluded that you can sell gold @ 2.125$/1m gold. (It takes some time, but people do buy it.) We've also seen that currently Radiant Star gems go for 27-30$ on the RMAH, and from 15-20m gold on the gold AH. Time to make infinite dollars.

Let's say you start with 15 million gold. That's your investment. Your act-3-farming grandma gave it to you for Christmas. Being the enterprising young chap that you are, you sell that gold for 2.125$ per million:

15m * 2.125$/1m = 31.875$ 

Now, you could take that 31.875$ and buy some drugs, but that doesn't make you infinite dollars. Unless you sell those drugs, and gradually build a network of supply chains and low level street dealers. The key thing here is redundancy; you don't want 1 small mistake such as a random police search to ruin your entire operation. It also helps if you... wait, what were we talking about?

Oh right, use that 31.875$ to buy a gem on the RMAH. As of right now (8/10/12), there are Radiant Star Emeralds that sell for 28$. Go buy one. Once you've got the gamecube gem, stick it on the gold AH.


These things sell for 19m gold (as of 8/10/12), remember? After fees:

19m gold * (1 - 0.15 GAH fee) = 16.15m gold

 Now you've got some gold back. Let's look at the final net results:

In:
15 million gold.
A little bit of love and caring.

Out:
16.15 million gold.
3.87$ change from buying the emerald.


Of course, the market will fix itself once people realize this and start trying to make this happen for themselves. It's also bottle-necked by your ability to sell gold for money; it takes a while for these transactions to go through. But it's free money, so why not give it a shot?

Why are you telling me this? 

Your stupid. You could just do this yourself and make tons of money. Why are you telling it to everyone?

I hear this all the time. Why do I give any advice at all?

It's not because this blog makes money. Far from it. This is the 26th post; I've yet to make 26$ from the ads. I guess nobody wants to date Filipino women, or meet singles in the area, or buy Diablo 3 gold online. Who would have thought?

Plus, I'm a computer scientist; I know how to optimize my site so that it gets more views. But that comes at a cost of the quality of content. If I wanted to increase readership, I'd have really short posts (like this one) and start spewing keywords like Diablo 3 or Barbarian Whirlwind.

The point of this blog is for entertainment. Barbarian Whirlwind! It entertains me as I write this, and hopefully you readers are entertained by reading it. Diablo 3! And if you want to make a couple of bucks from what you learn, then by all means do it! :D Enlarge your penis! :====D

Hell, this blog is hosted on Blogspot; I could host it on my own domain and put real ads and make real money. Oh yea, by the way guys, have you seen this great mousepad? It's got full art and everything!


(It doesn't show up if you have adblock) :D

Just kidding. This project is not about monetization. I got a real job. I can pay the bills and eat my Chipotle burritos. It's a good time.

So remember folks, the game is about having fun. Play the game for fun, and when you stop having fun, then start writing a blog do something else.