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This article was written by Draco, a contributor to this blog and member of the private forums.
Don't just know your Mat's market, know what you can do with your investment if you don't reach your target price. The best mat's to invest in are those that you can still turn a profit when this happens.
Let's look at Sticks of Butter, Recently it has moved up and I am sure there are people who have an average price that might be at or just above the current offering price. One option is to use your cooking skills and add a few more coins of investment into it and make Bowls of Peach Pie filling or Bowls of Butternut Squash Soup, as well as a few others.
Finding these 'Gems of Crafting' can be very helpful to really understand the market of these items and it's mat's. It will also makes you think of a few other important questions you should ask yourself when thinking of getting involved in some of the mat's markets:
- What can this item be turned into?
- Are those items, when crafted, profitable?
- Should I just craft them and then sell them for profit?
Will I be able to make more profit crafting then holding and selling?
- Will the crafted item's market be able to handle the volume that Ii am about add to it?
This is very important. If you decide that an item might go up and you buy about 10,000 units, when you craft it into a profitable item, how will you be able to sell the crafted item?
You never want to show weakness or create walls when you're just starting to sell a position.
It will also have you start thinking of the reverse:
- Why is this item moving up?
- Is it the Item that supports the value of the Mat or the Mat that supports the value of the item?
- What's going on with the items that's needed to create this?
- Is this item suggested to be bought on one of the crafting to 400 sites to level that profession? & how many are suggested to buy?
- What else can I make or craft that's suggested on one of the crafting to 400 sites that has profit in there as well?
- Can I find other items that are of the same profit zone and take advantage of it?
Understanding these few questions can open new areas of gold production that you might not be tapping into right yet. It can also expand your thinking into other crafting items that have hidden profit as well. One easy way to see if there is craftable profit in an item is going to gw2spidy and look at a craftable item. It will show you what's needed to craft that item and the prices.
Be careful, sometimes these prices are not absolutely current and a loss may occur if you just jump into it. If you take a closer look at the cost of the items needed, you will see that items you need to buy off the TP are listed at the Offer price usually. Take a peek at that item's bid, how much of a spread is in there? Can you buy the items needed at the bid price that puts you into a profit zone?
I have found a few items that said the item, when crafted and sold, would create a loss. But when I took a deeper look, I found that one of the items needed to craft the end result, if bought on the bid, turned the crafting loss into a gain, sometimes upwards of a silver profit per! These are great because when people are looking for easy profit items, they will pass these right up because they don't take the time and do a little research.
Making gold is easy when someone tells you what to buy and sometimes when to sell. It's harder to find these ideas at times for some people because a little extra homework and research is needed to locate them. When you do find these though, you will find that the competition will be much smaller than the ideas that you find out second or third hand. Who knows how many others are doing the same thing as you when you find out that way!
These Gems of Crafting have been a great cash cow for me the past few months and made some great amounts of gold. It's now time for you to find these too and make some great profits as well. A little time doing the research can net you wonderful profits.
Be sure to leave comments if you have questions and especially if you liked this article.
I have two questions from novice players that are based on two mistakes the players are making. Let's answer their questions and set them on the path to becoming trading post super stars...
"hi marko, sorry for my bad english in advance. i'll try to explain myself as easy as i can since talking about trading post can be tricky for a newbie of trades like me.i wanted to start with flipping, let's say, copper ores wich are the easiest to start i think. i've started just buy them at 42 copper each (current price at tp while im writing) and im trying to resell them at 51 copper each to have a comeback since at 50 copper i would just repay my copper buy transaction (counting fees). is this a good and proper way to start? should i prefer other crafting material at the moment? thanks for your precious help! :)"
His assumption is that copper ore is something you can easily flip instantly as soon as you by it. This is not the case Fabio! While in your current scenario copper ore looks like a good flip, what matters more is the time of day/week, not the price. You see, copper ore tends to go up and down in relation to the items that salvage into it along with player selling times (people tend to dump onto the marketplace at weekend nights after farming/playing on their characters. Copper is an item you can flip if you buy it during the work week and sell at specific times on the weekend. In other words, it isn't the fast flip for 1 copper instantly you had always hoped for.
Perhaps in your scenario you caught copper at the right moment when it was on the rise. Great, but not so great, because now you're going to think that the buy and sell prices at this moment are what make an item flippable. This isn't the case! You could be catching copper when it is falling, in which case you will not sell your items until the price has finished going down then back up... could be days or even a week!
Now, in order to help you learn the copper market, I want you to investigate buying level 0-4 and 6-9 white armor with buy orders and salvaging it for copper. You will notice that many can be purchased for incredible deals! More importantly, you will see that these items go up and down with the price of copper. After you master these, you should look into bags that turn into copper ore. And finally, you should study the way copper changes throughout the week. Use gw2spidy as a start, then watch it periodically on your own.
"Hi Markco,Thanks so much for providing these tips and TP advice for me. I consider myself kind of a noob when it comes to making money on the TP; I usually just sell mats whenever they clutter up my bank.I'm guessing I should start with buying lots of low value items and flipping them? I do have around 100g, but I'm relatively inexperienced.I look forward to everything you send out in the future!"
I was wondering why in your Damn Gold Guide you stated 'I do not, repeat do not, cancel my listed auctions.' After 24/48 hours most of my flips sell, however there are stubborn ones, that continuously get undercut that don't sell. What is the maximum time I should wait before re posting them at market price?
Hey John, thanks for the great question. Since it's one that I receive quite often, I'll answer publicly on the blog.
Yes, there is a point when you should probably cancel an auction, but it's not always as obvious as you'd think. If you are short on gold for some reason and can't afford something without canceling auctions, then I'd cancel for sure instead of pushing off an important purchase. Another case when you should cancel auctions is if you posted for way too much by mistake (clerical or situational). However, an assumption most people make when deciding to cancel auctions is that undercuts are a sign that they overpriced the auction; they're a bad omen of sorts.
If you follow this logical reasoning to its conclusion, nothing you post will ever sell because someone will always undercut it and eventually the price of all items will be nothing.
While thinking things through proves that the idea your auctions will be "continuously undercut and not sell" is very unlikely, there still is a point where the statement is true.
You must, for example, post your auctions at a price that will sell in a realistic amount of time, regardless of undercuts. If green wood logs never went above 10 silver in the past six months, then I'm unlikely to sell at that price point even if there are a few thousand higher than that. By looking at an item's recent history of prices you can quickly figure out whether the price is moving in a certain direction, fluctuating, etc.
Let's do an example to clarify what I'm talking about.
Green Wood Logs are at around 65 copper buy out.
The past few weeks they have been rising.
The lowest price in the past week has been 50 copper buy out.
If I post at 65 copper buy out, I will likely see a large amount of undercuts. However, if the pattern of prices continues, then I will eventually sell.
I could also post at 60 copper and sell quickly, but I'd make less profit.
Last tip... waiting 24-48 hours for an item to sell if not a big deal, depending on an item. I want my rare dyes to sell in a week and my grapes to sell in a weekend. I wouldn't apply a standard of time against all the same items you're selling.
I'm selling my Ambrite pieces for almost 3 silver each and buying lumps of Ambrite for 3.75 silver. Even if your luck sucks and you get around 1.5 Pieces of Ambrite per Lump of Ambrite, you still get back around 3.87 silver. Minus the three copper for my fancy smancy Copper Fed Salv-o-matic and I'm salvaging about a hundred a day for profit. Prices fluctuate so the key is to pay attention to the market and wait for changes before placing buy orders or listing to sell.
I'm just surprised that this method still works, as I already mentioned it a few weeks ago. Oh well, easy money! Just remember that with low profit / low risk items like this you usually have to wait a little bit longer than normal for the buy and sell orders to complete.
On the private forum side of things... Alex sent me an epic upgrade to the original converting kharma to gold method and I included it in the Markco's Crazy Thoughts Section. It shaves off around 100 kharma per item from the crab vendor I first recommended. You can find the original strategy on the blog here: Turn Your Kharma into Gold.
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"Hey thanks for the emails.
Things to invest in as we move into the second half of summer:
1. Candy Corn
I'm predicting that Candy Corn is going to rise within a month just like it did last year. This is due to the Halloween event coming up in three months. The only difference between this year and last year is that Candy Corn has been increasing a little bit each month since the last Halloween event, making this prediction a little less than a sure thing. Invest at your own risk!
2. Unidentified Dyes
These will continue to slowly climb in price, so investing in them is a sure, albeit slow, strategy for making gold. Expect bigger upticks during the Christmas event and other times of the year when players tend to come back after a hiatus.
3. Iron Ore
In the past three months Iron Ore has gone up to 2 silver and back down to 1 silver like clockwork. Right now we're sitting at around 1.25 silver, so I recommend buying this up for a quick profit next month.
4. Thick Leather Section
Back in May of this year Thick Leather Sections rose to 25 copper, and I'm sure that we will see spikes like that again in the future. You just need to be patient and wait it out.
Grape speculation is a scary thing, because there aren't that many in circulation on the trading post compared to other cooking materials. One time a reddit post was created based on a post I wrote about grape speculation and the price rose to over two gold per grape! This was due to a patch that was supposedly adding new wines, and everyone assumed grapes would be used in the process. Anytime you see grapes as cheap as they are now, you should stockpile a few.
Christmas time is coming faster than you think.
Despite the fact that eggs have remained steady in price for a long time, I have noticed a steady decline in the number of eggs for sale. This should lead to a spike in price in the next few months.
8. Lump of Raw Ambrite
These are currently profitable if you are patient with buy orders and sell listings. You'll average 2 Pieces of Ambrite per Raw Ambrite you salvage. At that rate you'll be making around 10 copper per salvage.