Gold Selling in Diablo 3 is Stupid

Gold on the Real Money Auction House
Keep in mind that this post has nothing to do with making money during the first few weeks of gameplay. At that point in Diablo 3's lifecycle, players will most likely be buying only a handful of items (if any) as they forge ahead to level 60. During that period of time, about the only thing players will want is gold, since that's how you increase storage, repair gear, and level your artisans. Once we pass this initial (and crazy) need for gold, you'll soon find that selling gold is a pretty stupid thing to do.

If you do choose to sell gold on the RMAH, then you will take on a 15% fee off the top of the total sale. So if you sell a nice sized stack of gold for $100, you will end up only bringing home $85 (not including additional paypal fees for cashing out). However, let's say that you took the same amount of gold and invested it in an item (or items) that were worth about $100 on the RMAH. If you then sell those same items, you would only incur a $1.25 fee per auction. If you manage to actually sell an item worth $100, good for you, though you'll most likely sell a few of lesser value more easily. So let's say that you sell off 4 items worth $25 each. You end up losing $5 in fees and end up with $95 after the transaction.

Selling gold will probably get you money quicker than trying to sell equally valued gear, but it will also certainly will hurt your long term earnings.

Do you see now how foolish it is to sell gold, at least once players take on a real interest in gear later on in the game? You're much better off converting the gold to gear/weapons and selling those.

13 comments:

  1. You should apply a small fix to the post title:

    GOLD SELLING ***LATER ON*** IN DIABLO 3 IS STUPID

    Because -as you correctly said- the first hours/days will be absolutely crazy and an army of avid players will be throwing a money at the screen trying to get more and more gold as fast as possible.

    So NO, selling gold is not stupid at all until the market will be gold-saturated. Selling gear, on the other hand, will be hard as hell unless you apply huge discounts (low profit).

    Everyone will be leveling, so everyone will be accessing more or less the same "leveling" gear that will be replaced in matter of hours.

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    1. Hey you're back! We missed you haha. Glad to see you commenting again.

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    2. Hah! I wrote a post with the exact opposite message the other day it will be published tomorrow. It's written similar to yours but has the exact opposite message (it focuses on day 1). I didn't rip you off, great minds think alike!

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    3. Read the first paragraph and it probably agrees with what you want to say: selling gold on day one is a great idea.

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  2. Might try selling it in the Trade channel at a slight undercut of the AH.

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    1. Another excellent alternative, good point stabs! Liking your site btw, nice job ;)

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  3. $85 still sounds a good deal to me for virtual gold, I'll take the $85 thank you.

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  4. Please accept my apology for using the word "stupid" in the title of this post. It probably should read "less profitable." for some, the time invested isn't worth it.

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  5. Well if gear ends up selling for less than $8.33 each the fee is actually more than 15% so gold would have a better return rate at that point. If you can turn that gold into in item that sell for more than $8.33 then selling gold becomes less profitable. Like all thing going around out there that is just pure speculation getting the think tank working.

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  6. I'm confused, how come selling gold has a percentage charge of 15%, but selling items has a flat charge? I understand the math, but I don't know why one is percent based and something else is flat price based.

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    1. Yes, commodities (stacking items) are 15% and non-stacking items (gear/weapons) are $1.25 for fees.

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  7. I'm expecting companies such as IGE, and whatever else is out there to already saturate the market even after 6 months, as you can see with Star Wars, The Old Republic, they have millions of gold available on every server already. It's quite epic how many farmers are really out there. Let's not single out any race, and take into account there are millions of desperate people with computer access willing to do anything for a few cents. We can be at par with these companies if we can find kids in 1st world countries to work for us at .75 /h, but you know that won't happen. The only way I see making a buck on a consistent basis is do most of our sales in stack-able quantities, while spending a good part of your day salvaging and looking for good deals. Items on the other hand, will fill some of our AH slots; it's always better to diversify.

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