Do I need to explain in baby words what this post signifies?
The post content, or the posting itself? For the former, that you have money to burn. For the latter; you have a pathological need to justify your actions to any who will listen.
. . .moving along now. . . .
You are right , to date I have spent 12,000$.
I'm tired of my day job. I work 9-5.
I enjoy Diablo, hire me and lock me away in a dark closet.
I will farm gold for you all day.
My requirements; 80k/year
You act like this is some big deal or that a few screenshots cannot validate what I am saying.
When I get back to my computer I will provide an ss of inflows and outflows. As long as you can add or subtract you can figure out the "net amount" spent (if any - there is none)
Edit: PayPal screenshots of Monies received and paid out. Matched to screenshots of the short/arbitrage trade I have stated,
Edited by SociallyAwk#1736 on 6/14/2012 4:45 PM PDT
No you have it opposite.
First selling most of my items for gold them selling the gold for seed money ( this step is optional).
Use money to buy items on the rmah (some items that are close to $250 due to the price ceiling are artificially cheap - this is nothing new look at rent control in NYC as a perfect example of real life price ceiling phenomenon). Since you are an rmah "buyer" you incurr zero fees.
Selling the item for gold. Because there is no price ceiling for gold you will sell for a higher relational price when compared to the usd$/gold spot price.
Sell the gold for $.
You should now have more usd$ than what you put in. This is the only arbitrage/short that works because if you try to go around the triangle the other way you will incurr fees. Sell on the rmah and there's a fee. Buyers don't have fees.
I am buying gold because I sold a lot of my in game items for seed money (and if you check my previous thread I mentioned I don't keep gold on hand due to inflation, I keep it in page 1-4 quality items as determined by the ah.
The net result of this wall of text is actually quite amazing. It is possible to execute on the holy grail of d3 trading: the ability to synthetically short gold. Everyone knows it can only go down in value (asymptotally - at a decreasing rate).
However there is a potential price floor for gold. And until I think that floor is reached or until this trade becomes unprofitable I will only explain the strategy in broad stroke rather than tell you " go long resist vita primary stat shoulders" in rmah.
Edited by SociallyAwk#1736 on 6/14/2012 5:18 PM PDT
This is plausible in the early days of the RMAH. In a few weeks I think the markets will balance and the triage will no longer yield profit due to the substantial transaction fees.it's already fast diminishing and once they allow gold sales officially this strategy will die.
$1700 the first 24 hrs. Less than $400 thereafter...
But I don't really need more irl money so all these"proceeds" go back into my character .
Hence why if you are on my friends list you see my bow (previously a 1500 dps bow) is 600 dps. Looking to buy back a better bow...
Edited by SociallyAwk#1736 on 6/14/2012 5:30 PM PDT
Basically no one would deny that given the opportunity they would not short in game gold- just look at the price action in the last 3 weeks $20 to $5.5
Problem is prior to the rmah opening the direct exchange of cash for items there was no way to even mimic a short position In gold. Even now the transaction cost would be too high were it not for the fact that the way we traverse the triage now incurred no fees (rmah sellers pay fees, this strategy makes you a buyer- and "gifting" incurred no paypal fees).
The only fee is if you your item to gold conversion incurred an ah fee, but that is avoidable they forums and private deals - what you should be doing anywase. Only sell on the ah if you can make up the 15% ah fee with over zealous bidders.
Edited by SociallyAwk#1736 on 6/14/2012 5:31 PM PDT
My next possible profit center is looking into whether transaction fees are factored into the implied volatility of item and gold values.
E.g if transaction fees are 1-2 % and implied vol. is 7-8% then if fee are 15% what is implied vol.? Has to be over15% right?
You must be new to the internet.
Ever heard of Zynga? They made billions with people throwing a lot more cash on much worse games.
I'm actually not against it. And it becomes more convincing to do so as inflation mounts.
Make $20 an hour and spend $7/mil or farm 500k (best case scenario) in the same hour?
It's just jealous unemployed people who cry and !@#$% and shame a perfectly rational choice. It's the same people who look at my articulate and meticulously detailed trades and throw their hands up in frustration and cry foul.
This is why occupy wallstreet exists, because no one could possibly do well using the tools available to them. Must be something unsavory going on. I do this type of thing as an occupation and brouht my insights with me. Imagine the way someone like Soros or Louis bacon Moore would break this economy.
Edited by SociallyAwk#1736 on 6/14/2012 6:03 PM PDT
Threats of violence. We take these seriously and will alert the proper authorities.
Posts containing personal information about other players. This includes physical addresses, e-mail addresses, phone numbers, and inappropriate photos and/or videos.
Harassing or discriminatory language. This will not be tolerated.