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Sold All My Silk Today

Well holding on to my silk from the Lion's Arch events has finally paid off! I know I've been hammering you with the idea that Silk will eventually rise, and thankfully it finally reached the 2 silver mark! I hope that you were saving all the Silk when it was only worth a silver or even when it rose to 1.7 silver.

This is a great opportunity to share a lesson with you on the Guild Wars 2 economy, namely:

The Trading Post Wants to Remain the Same.

Some people have the misconception that the Trading Post is attempting to reach an equilibrium where everything sells for a copper more than it costs to buy it. This simply isn't true for most markets! Like a pendulum, markets will always swing from one extreme to the next, but the key is figuring out where the mid point is. Once you understand the average price of something then you can determine if you're currently higher or lower than that value. You know the phrase buy low sell high? Well it's pointless if you don't have the key to the whole thing: an average value.

For silk scraps, the average value is approximately 2 silver. This is where the Trading Post wants the price to be right now. The factors of supply and demand are constantly pushing the value up or down to correct it towards the 2 silver mark.

Then came the Escape from Lion's Arch event, which sent a ridiculous amount of Linen Scraps into the economy and dropped the price. However, the Battle for Lion's Arch incentivized the killing of bosses for exotic gear boxes, which do not contain anywhere near as much silk as salvaging armor from Alliance Supply Bags. Since the supply dropped and demand remained the same, prices went up on Silk Scraps towards 2 silver.

I'm not saying that 2 silver is going to remain the permanent middle point for Silk Scraps, but it has been for a few months. Events may cause things to temporarily go out of wack, but as long as demand remains the same then the middle point will not change.

I hope that helps! I am not a true economist because everything I've learned is from experience and not schooling. Therefore, I often create my own terms and phrases to help people who share a similar lack of learning. If you are an economist, perhaps you can put some technical terms on what I'm describing in the comments.

EDIT: One more factor I forgot to mention is the need to get 500 tailoring for the Ascended Spinal Blades. That is definitely helping to counter an increase in Silk Scrap supply.

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