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How to Buy the Cheapest Iron (or any Raw Materials)
This is a step by step guide on how to get the cheapest raw material. I used to sell iron to weapons company owners and am providing this information from my experience trying to trade iron for an eLiving.
The cheapest iron will always be located in high iron regions. Even if your country has a high iron region of its own, it would still be possible to get iron cheaper from another country.
In order to be able to get the cheapest iron, you need to have as many orgs as possible located in high iron regions. For the last month, I had found the cheapest iron are usually located in Brazil, Hungary, Peru, and Spain so you should look to get at least 4 organisations in those regions but preferably in all the high iron regions if you wish to purchase the cheapest iron.
Step 1
Buy orgs to be located in as many of the high iron regions as you can afford. I had orgs in all the high iron regions when I use to trade iron.
Step 2
Look at the local price of currency value of the high iron region.
I do 'open all tabs' and put in the real time price of the local price of the currency or you can use ereptools.net for the delay price feed.
Step 3
Find the current price of iron for quality 2, 3, 4 which are usually the cheapest iron.
I do 'open all tabs' and put in the real time price of iron of quality 2, 3 and 4 by quickly closing each tab once I put the price in if the price has changed.
The spreadsheet on the right shows the local currency value, the price of iron and the far right column the cost of iron from listing your gold for currency.
The people that do tend to buy their raw globally tend to look at ereptools.net but the problem with that website is that they use the price of global currency rather than local currency to calculate the price of iron.
Due to that reason, Ukraine, Peru and recently Brazil have been some of the best regions to purchase cheap iron because most people do not take in account of the large spread in the currency and overvalue the cost of buying iron from those countries.
Step 5
I would recommended to have about 100 currency of each country in order to be able to buy iron asap when you see them listed cheaply on the market. Although the country that sell the cheapest iron do change frequently, there are some days where there might only be two countries where they consistently sell the cheapest iron and so just make sure you have enough currency for those two countries.
Step 6
Once you work out the cheapest iron – buy the iron with your org and donate to your company. The only thing I would have to say is to use the greasemonkey script so that you can donate 10 iron at a time rather than dragging each one at time. I don't think I could have done it so easily without it.
Personal Observations
The best time to buy iron tend to be about 3-4 hours after start of new eRep day when the iron companies start to compete with the lowering the price of their irons. Also at around 6 hours and 9 hours were good times but the later it gets the more expensive the price of iron.
Countries
Brazil - have been one of my favour place to get iron due to their varying currency spread which means there are good deals to be had from inaccurate pricing. However, I have always been wary of holding too much of their currency with the BRL being extremely unstable and prone to depreciate and so sometimes miss out since I do not have large quantities of BRL on hand and unable to exchange gold for their currency in time.
China – I have never bought iron from China because of their well managed currency with a stable currency and a small spread for as far as I can remember. This means that as soon as the price of their iron becomes cheap, it is on ereptools and they are quickly bought up. Buyers are willing to pay a premium from the stability of their currency and their small spread. Good for their economy but bad for me.
Greece – although I do buy from Greece from time to time over the last few weeks, I have unable to buy anything from Greece. This might also be due to their central bank closing the spread a la China making it hard to find good deals.
Hungary – another one of my favorite place to buy cheap iron. For about a week, the global price of iron fell sharply and they held out the longest from dropping their prices. There were a huge amount of unsold iron building up on their market. I topped up my Hungarians and since then their price collapsed for the last week have been just buying up cheap Hungarian irons.
Peru – another favorite place of mine to get cheap iron because of their huge spread. In fact, if all else fails buy from Peru. Their iron can be the cheapest globally for a long time and they are not bought up because of how illiquid their currency is and to hard to purchase their currency through listing gold.
In fact, it is almost impossible some days to list your gold for PEN for a good price once eRep opens. As the price of iron becomes lower when the iron companies list their iron on market, the price of PEN becomes higher.
For currency traders, a good play would be to list your gold for PEN in the few hours up to eRep new days and buy your gold back when the PEN get chased up during the new day when their iron get listed.
Russia – I haven't bought iron in Russia because when I first started to trade iron they were constantly much more expensive then other countries for a long time. I am not sure exactly the reasons why but after monitoring their price for some time and couldn't buy anything from Russia, I moved my org to another country and haven't checked their prices since.
Spain – another one of my favorite place to purchase iron. Their currency is so liquid that I was able to exchange ESP for gold and gold for ESP with no problems but unlike China because of their big market, from time to time I'll find a good deal as a few company owners cannot afford to not sell their iron behind a huge list of companies and drop their price below cost which I snap up quickly.
Ukraine – it was the first country with a big spread and the 'first Peru' where you can constantly buy cheap iron due to the value of their iron listed overpriced on ereptools. However, over the last few weeks due to their small market, the price of their iron have not followed the dropped in the global price of iron as quickly. I expect this to change over the coming week and they should once again be a good country to buy iron cheaply.
The other thing of note is that their currency is extremely hard to get out of with a large number of traders on an illiquid market. When I finished my trade in iron I have been unable to get out of their currency despite listing it a number of times and had to sell them in blocks of 30 each to get anything sold. So only hold UAH if you intend to use it all.
USA – similar to Russia, I stopped monitoring the country when they did not have the cheapest iron from when I first started. I presume it was in part due to their unfavorable tax rates but seem to have gotten closer to the cheapest global price over the last week. However, due to their unstable currency and high possibility of devaluation it would not be good place to trade until their currency stabilizes.
I hope I have given some useful information on how to buy cheap iron as well as idea of where to place your orgs. This method of buying iron should be cheaper than actually owning an iron company since the iron you buy are likely to be from those that needs to get rid and selling below cost and taking advantage of global situations.
If you need any other information on buying iron or raw materials for your company, pm me for details.
Next Issue: How to Make Money on the Monetary Markets
The cheapest iron will always be located in high iron regions. Even if your country has a high iron region of its own, it would still be possible to get iron cheaper from another country.
In order to be able to get the cheapest iron, you need to have as many orgs as possible located in high iron regions. For the last month, I had found the cheapest iron are usually located in Brazil, Hungary, Peru, and Spain so you should look to get at least 4 organisations in those regions but preferably in all the high iron regions if you wish to purchase the cheapest iron.
Step 1
Buy orgs to be located in as many of the high iron regions as you can afford. I had orgs in all the high iron regions when I use to trade iron.
Step 2
Look at the local price of currency value of the high iron region.
I do 'open all tabs' and put in the real time price of the local price of the currency or you can use ereptools.net for the delay price feed.
Step 3
Find the current price of iron for quality 2, 3, 4 which are usually the cheapest iron.
I do 'open all tabs' and put in the real time price of iron of quality 2, 3 and 4 by quickly closing each tab once I put the price in if the price has changed.
The spreadsheet on the right shows the local currency value, the price of iron and the far right column the cost of iron from listing your gold for currency.
The people that do tend to buy their raw globally tend to look at ereptools.net but the problem with that website is that they use the price of global currency rather than local currency to calculate the price of iron.
Due to that reason, Ukraine, Peru and recently Brazil have been some of the best regions to purchase cheap iron because most people do not take in account of the large spread in the currency and overvalue the cost of buying iron from those countries.
Step 5
I would recommended to have about 100 currency of each country in order to be able to buy iron asap when you see them listed cheaply on the market. Although the country that sell the cheapest iron do change frequently, there are some days where there might only be two countries where they consistently sell the cheapest iron and so just make sure you have enough currency for those two countries.
Step 6
Once you work out the cheapest iron – buy the iron with your org and donate to your company. The only thing I would have to say is to use the greasemonkey script so that you can donate 10 iron at a time rather than dragging each one at time. I don't think I could have done it so easily without it.
Personal Observations
The best time to buy iron tend to be about 3-4 hours after start of new eRep day when the iron companies start to compete with the lowering the price of their irons. Also at around 6 hours and 9 hours were good times but the later it gets the more expensive the price of iron.
Countries
Brazil - have been one of my favour place to get iron due to their varying currency spread which means there are good deals to be had from inaccurate pricing. However, I have always been wary of holding too much of their currency with the BRL being extremely unstable and prone to depreciate and so sometimes miss out since I do not have large quantities of BRL on hand and unable to exchange gold for their currency in time.
China – I have never bought iron from China because of their well managed currency with a stable currency and a small spread for as far as I can remember. This means that as soon as the price of their iron becomes cheap, it is on ereptools and they are quickly bought up. Buyers are willing to pay a premium from the stability of their currency and their small spread. Good for their economy but bad for me.
Greece – although I do buy from Greece from time to time over the last few weeks, I have unable to buy anything from Greece. This might also be due to their central bank closing the spread a la China making it hard to find good deals.
Hungary – another one of my favorite place to buy cheap iron. For about a week, the global price of iron fell sharply and they held out the longest from dropping their prices. There were a huge amount of unsold iron building up on their market. I topped up my Hungarians and since then their price collapsed for the last week have been just buying up cheap Hungarian irons.
Peru – another favorite place of mine to get cheap iron because of their huge spread. In fact, if all else fails buy from Peru. Their iron can be the cheapest globally for a long time and they are not bought up because of how illiquid their currency is and to hard to purchase their currency through listing gold.
In fact, it is almost impossible some days to list your gold for PEN for a good price once eRep opens. As the price of iron becomes lower when the iron companies list their iron on market, the price of PEN becomes higher.
For currency traders, a good play would be to list your gold for PEN in the few hours up to eRep new days and buy your gold back when the PEN get chased up during the new day when their iron get listed.
Russia – I haven't bought iron in Russia because when I first started to trade iron they were constantly much more expensive then other countries for a long time. I am not sure exactly the reasons why but after monitoring their price for some time and couldn't buy anything from Russia, I moved my org to another country and haven't checked their prices since.
Spain – another one of my favorite place to purchase iron. Their currency is so liquid that I was able to exchange ESP for gold and gold for ESP with no problems but unlike China because of their big market, from time to time I'll find a good deal as a few company owners cannot afford to not sell their iron behind a huge list of companies and drop their price below cost which I snap up quickly.
Ukraine – it was the first country with a big spread and the 'first Peru' where you can constantly buy cheap iron due to the value of their iron listed overpriced on ereptools. However, over the last few weeks due to their small market, the price of their iron have not followed the dropped in the global price of iron as quickly. I expect this to change over the coming week and they should once again be a good country to buy iron cheaply.
The other thing of note is that their currency is extremely hard to get out of with a large number of traders on an illiquid market. When I finished my trade in iron I have been unable to get out of their currency despite listing it a number of times and had to sell them in blocks of 30 each to get anything sold. So only hold UAH if you intend to use it all.
USA – similar to Russia, I stopped monitoring the country when they did not have the cheapest iron from when I first started. I presume it was in part due to their unfavorable tax rates but seem to have gotten closer to the cheapest global price over the last week. However, due to their unstable currency and high possibility of devaluation it would not be good place to trade until their currency stabilizes.
I hope I have given some useful information on how to buy cheap iron as well as idea of where to place your orgs. This method of buying iron should be cheaper than actually owning an iron company since the iron you buy are likely to be from those that needs to get rid and selling below cost and taking advantage of global situations.
If you need any other information on buying iron or raw materials for your company, pm me for details.
Next Issue: How to Make Money on the Monetary Markets
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Excellent article. Looking forward to the next one. Roughly how much were you able to source iron for in Hungary and Peru?
awesomeoen guide
i was wondering how much do you make a day by buying/selling ? or do you own a weapon company or something ? sorry if i missed it in the article...
and how much of ur time does it take up ?
v+s
You can buy as much iron as you like. I was buying from between 1 to 5 gold of iron for each customer. Take a look at my donation list and check the donation list of the iron companies that I provided iron. You can tell where I purchase the iron from the name of the orgs. TYSerbia = Greece.
Peru you have to be careful because their currency goes from 56 PEN to 54 PEN very quickly and back down again. You really need to buy all the currency you need beforehand because during normal times when iron are cheap it is real hard to be able to get any PEN at all.
The money is not good at all. I was making a margin of something like 0.0001g per iron so 100 iron 0.01g profit when prices are stable. When prices drop tho I think the most I made was 0.03g - 0.04g per 100 iron.
The reason I did it tho was because I make most of my money from currency trading and when a currency depreciates, I quickly buy up all the iron to get out of the currency. But when I stopped running my weapons company I needed some way to get out of my currency if it moved against me and this was the way to do it.
Also, it gave me a better idea of how iron trade affect the value of the currency which is my main interest.
Outstanding article!
How much iron would you have to buy to make it worthwhile setting up a new org in those places?
Cheers Addy. =]
Johnny, it depends really on where you are based. In terms of money saved, since I expect you will have one org already from buying the company, it shouldn't be much if you put the org in the right place. I think if I only had one org, I'll put it in China or Spain or Hungary and you pretty much going to get prices that are 0.001 or 0.002 out from the lowest price. This week with price dropping maybe 0.003 to 0.004. I remember at one point Russia cheapest was at 0.0084 and Peru was at 0.0078 so that is a saving of 0.06g per 100 iron.
And from what I hear, it might be worth getting an org so you can do additional surveys with them. I heard people getting rich from buying loadsa orgs and doing multiple surveys tho since I am in China at this time I can't do any surverys.
OK, thanks dude, I'm looking for oil myself, so I'll try and keep an eye out for local markets which consistently put out oil at a low price, and move my org their.
Venezuela
just check it on <a href="http://ereptools.net/market/raw" target="_blank">http://ereptools.net/market/raw</a>
Very good post indeed. Shame about proper free trade but this will certainly help make a bob or two.... Thank you.
interesting
Awesome article, Tim.
I would like to see you publish it in Canada (if you have not already).
Citizen B
Is there any greasemonkey's script doing an instant donate which is compatible with eRep v2?