Why are prices so volatile? Ask ArenaNet, because they practically begged and instructed us all to speculate on this recent patch. Prices have been ridiculous, with things like mithril ore (which will be quite valuable at some point in the near future due to its use in high end crafting) going from 40 copper to 1 silver and back down to 40 copper. Prices are so crazy BECAUSE speculators make up the majority of buyers and sellers. For anyone who is thinking long term here, which is rare in the speculating world, these temporary price dips are golden opportunities to double down on your speculations. As short term speculators run out of their stock from constantly dumping the moment prices reach a certain point, and long term speculators stock up even further, then we will slowly see prices reach an equilibrium point. It is then, after a week or two of stability (at least predictable ups and downs like we had before), that we long term speculators can slowly release our stockpiles into the market.
What should you do now while you wait for equilibrium? Depends on whether you are a short term or long term speculator. If you want a little gold now, then sell off your stockpiles the moment they reach a decent increase in value. If you want to get lots of gold later, buy up the items you’re stockpiling any time they suffer from a random dip due to short term speculation.
So who were the big winners yesterday when the trading post turned back on? By far the biggest winner was armor. Anyone who has been flipping these regularly (as instructed on this blog and the private forum guides) saw incredible increases in their value. I had a bunch of gloves I bought for 20 copper buy orders that sold for 4, 5, and even 6 silver before I ran out!