Do Runescape Merchanting Clans Work?
Merchanting Clans: Yes or No?
Many experts have different opinions about the effectiveness of Runescape Merchanting Clans.
Microeconomics Of The Grand Exchange
A recent article Microeconomics Of The Grand Exchange by B. Williams, states that there is a major problem with the idea that merchanting clans can make you rich. While a Merchanting Clan may be able to “trick” the grand exchange into believing that there is a shortage of a product, which will increase the price of that item - Williams' feels that most Clan Members don't make the Riches they are promised.
Williams makes a complicated argument that Merchanting Clans do not work because the number of gold pieces does not change, but only trades hands - and that the Merchanting Clan leaders have secret buy and sell points that are different than those they publish to their followers.
While the author does go on to give some encouragement to someone thinking of Merchanting, his examples aren't specific enough for me to set up a trading strategy. When it comes to trading, it's all based on prices, and I like to see charts and graphs that show me some of the history of an item.
How To Merchant With Price Manipulation
I'm very impressed with the detailed stats and content on Zybez Community by ArcticBananas: How To Merchant On The Grand Exchange With Price Manipulation
ActicBanana tells the steps of how two different Merchanting Clans work: you join, ask the Clan Members what is on the Buy-Out List, then you go to the Grand Exchange and purchase as much as you want. He makes it sound so easy and profit-assured - but BE WARNED! You need more information than this!!
Here are the steps recommended by ArcticBanana:
1) Join a merchanting clan
2) Find out what is being bought out.
3) Buy that item.
4) Wait for the items to go up in grand exchange. This can take anywhere from 2-10 days.
5) Sell when the items price has peaked (dumping).
6) Enjoy your easily earned money.
YIKES!
Don't get me wrong - I know that a well-run Merchanting Clan WILL help you make more money - but you need more information than this before you put your hard-earned gold pieces into someone elses trading advice - or you will end up being stung, just like B. Williams describes.
Existing Merchanting Clans on Runescape
A_C_I_D_Y - I was able to find a little bit of good information about Merchanting by searching out A_C_I_D_Y - here's some from the Sythe Forum Archives - Become An Investor Today
Amplive - Seems to be a lot of conversation about this Clan in the Forums. I've never taken the time to register at the forums, for the most part, I find the conversations are nothing but flames and rants.
Your Runescape Merchanting Clan
If you know of a good Merchanting Clan - I'd like to learn about them.
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The biggest problem is that the clans run up the price and create a sort of artificial demand. When everyone tries to dump at once, the price crashes.
I read about someone on the forums who saw the price of ashes going up. She said she had converted virtually all her gold into ashes, and was waiting for the price to peak so she could sell. Since she was spending literally millions of GP on ashes, I wouldn't be surprised if that alone was causing most of the price increase. She was the one creating the demand. I was more than happy to sell her ashes I'd picked up around the GE though. Wonder how she fared when it came time to dump it all. I have a strange hunch it didn't work out as well as she'd planned.
Well, i think you can make money but it will take time, instead of selling when they say so sell when you feel the time is good, if you sell before the others you will get a good price instead of taking the risk of actually loosing money. So my advice is to
1. Join a merchant clan
2. Buy the required item
3. Sell a couple of hours before everyone else does or when you feel your getting a good deal.
I have made at least 1 mil in a week doing this you just have to be patient.
Merching Clans Do Work All Though Amplive and A C I D Y are like 10 years old and do not play anymore.... Now A Days Merching ClanS Are Gp Merchrs, Be Mercher All Those......
The trick with merch clans is (don't tell them this), to NOT sell the item when the leader says "dump". Do it slighty before, because if you sell the item with the rest of the clan, there will be a huge drop in prices due to the increased supply and you may end up making a huge loss. If you do it slightly before, as the demand for the item increases and as the supply decreases (due to the merch), you will almost certainly get a big profit and will be able to sell the item (ie it will sell almost immediatly) through the Grand Exchange.
I've never seen an item get to the "dump" price.
Some clans pick stupid items - eg potions that are fairly easily made - once the price rises heblore-ists flock to make them as it suddenly becomes cheaper experience! You'd think that this would cause the price of the ingredients to rise too...and sometimes here is a flow-on effect, but normally the price of the potion crashes before it's very noticeable.
some clans ar scams - they have already bought a lot of the item cheaply over the previous week without causing massive demand - when the suckers...er...I mean members start buying they sell of their accumulated stocks for a nice profit...and fo some reason the item never makes the dump price.
But most often of all everyone knows that prices will fall before eth dump price is reached so they start bailing out (selling) before that happens to avoid being caught. A few will sell very early and the price will keep rising, but as it gets closer more and more will start selling and the bubble will burst!
Merchanting new items can be worth it if you got in early and they are actually worth something - eg see the prices for mint cakes and blood talismans. But again it's a gamble when to sell...as of today mint cakes dropped for the first time....Jagex have made them easier to get.....is that the end? Or just a blip and an opportunity to get more at a low price? how much will increased availability affect their value??
I hedged my bets - sold my small stock for a good profit.....then went and bought a couple more cheap. If they hit millions I'll do well, and if they dive I've only lost a few 10's of thousands.
Blood talismans seem to have a steady slow supply and are still increasing by the max % each day - this could be because there is genuine shortage of supply....or it could be someone manipulating what is essentially still a small market.....I have a dozen of these so I'm interested in how it goes - but if they fall I'm not going to lose too much either.
and yes I've ridden the coat tails of some clans and bought a few of this & that for profit...and occasionally loss - but you'd neer make millions at it!