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The loss of 100% bonuses for the eUSA played out over the week. Wages took a dive, gold steadily climbed, and prices were relatively uneffected by the bonus loss.

Raw materials show an ability to fight off higher prices. More and more toward the end of the week (after the 10% loss of production due to bonus loss) eUSA prices for weapon raw materials edged over .07. Repeatedly enough weapon raw found its way to market to maintain the .07 level. Food saw no such conflicts. The Raw Material Index holds steady at 28.89 for its 30th straight day.

Food, lead by price rises on the high end (Q5 & Q6), push the Food Index to 73.62, up 1.9 for the week. The low end (Q1 & Q2) and the mid-range (Q3 & Q4) hold for the week despite the 20% reduction of the food bonus.

Weapons held steady for the week. There was a strengthening in prices in the two days following the 10% bonus loss through the low end & mid-range, but prices pulled back by week's end. The Weapon Index is flat for the week up 0.33 to 71.27.

Unlike food & weapons, wages were effected by the bonus reductions and wages took a big dip in the days following the reduction and then corrected a bit upwards at the end of the week. The Wage Index falls 5.08 to 96.95, a level we haven't seen since the beginning of May.

Gold continues it's relentless climb setting a record each day this week as it closes in on 3000cc per gold. The Gold Index climbs 26.9 to 179.70

The Index:

Note food pulling a bit away from weapon recently. And of course that drop and recovery on wages. Looks like The 1600 Index will have to bump up the top margin for gold soon. Its now 79.7% more expensive than Day 1600 (aka 07 April 2012)


The 1600 AU Index
Based off of the amount of gold a player could earn in a year by working at market wage, selling 20 weapons, 200 food (both Q6) and 1750 raw materials (split 50/50 food/weapons) the 1600 AU Index continues its downward plunge. The rising cost of gold, coupled with a big drop in wages leaves the 1600 AU Index at 175.78. As previously noted, on Day 1600, one could have bought 451 gold by working & selling.

The graph:

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The production bonus reduction along with the drop in wages throws producers into a tizzy. Clearly there was an over-reaction on wages in the day following the drop. Wages dropped to 270 and then climbed back over 280 as producers realized the situation. So where does a producer stand? The 1600 Index feels a decent chart should illuminate -



Apart from being sloppy, the producers' chart shows us a few things.
1) Q1-Q4 are never profitable to operate if one buys all the raw materials at market prices and pays market wages. But we already knew that.
2) with the reduction of bonuses on Day 1674 (conveniently marked in red on the chart) Q5 food production ceases to be a viable employer.
3) with the recovery in wages over the last two days, Q5 weapon production ceases to be profitable as an employer.
4) Q6 food employers suffer larger losses in profits than Q6 weapon employers. Which makes sense if one considers a food factory is now producing 160 food rather than 200.

Consider a Q6 food employer paying $301 in wages on Day 1673 (market wage). They produced 200 units of food meaning the labor cost per unit ran $1.51. At the new market wage of $280 and the new production of 160, the labor cost per unit is $1.75, nearly 16% more per unit. A Q6 weapon paying the same saw their labor costs move from 15.05 on Day 1673 to 15.56 (only 3.3% more).

And some graphs to reinforce the changes over longer periods

Weapon producers suffered less of a bonus reduction that did food producers, keeping their profits closer to full bonus levels.


Well, that's that Q5ers. The bigger bonus reduction of food really nails the profits.

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Gold has been interesting lately, hasn't it? The 1600 Index has gold prices going back to March 2012 taken at the same time each day. The crack staff here at the 1600 Index put together a gold price chart overlaid with sales events. Not sure what it tells us about the recent price in gold, though. Our usual caveat: correlation does not equal causation. Just because item two follows item one does not mean item one caused item two. Regardless, its a nifty look:


The 1600 Index is willing to go out on a limb and say the Q3 training introduction (and sale on Q2 upgrade) DID cause the spike in gold around 25 April. A classic spike when it starts and a dip when it ends. The 44% upgrades also show a jump on day one and a return to a lower level after the sale ends (about due for another one, if the spacing is even). The booster sale...tough call. Certainly the recent run-up of gold began before the booster sale started. What effect its had, is hard to estimate.

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Moving Averages

For those unfamiliar with a "moving average", in the following charts, the blue line represents the market price at 3:00 eRep time. The red line in the 5-day moving average (average of the last 5-days) of market prices. What that tells us is whether prices are trending downward (the market price is below the moving average) or trending higher (the market price is above the moving average).

A look at wages


One can see the correction after the big drop. Technically we're in a period of "rising" wages (blue line above the red line).

A look at the mid-ranges (Q3 & Q4)

With the exception of that one jump, prices have traded very narrowly for 30 days. Most days are within .06cc of 11.51

Q4 Weapon


A little more movement, but still trading tight. Generally +- .06 of 15.40 although there are more jumps.

Food, then-

Moving in a slight upward trend since Day 1558.


Same with Q4 food. Trading tight, but moving slowly up.



Note: prices are reflective of a percentage of Day 1600's price (Hence the "1600 Index"). In other words if an index is quoted at 88, that days price is 88% of the price on Day 1600. Except the 1600 AU Index which represents an amount of gold one can buy given market conditions as noted in that section.

Methodology on prices: prices are taken at 3:00 eRep time. The price is the average price of buying 1,000 Raw materials, 500 Food, 100 weapons (at each quality level), and 8 gold, plus the market wage less any fraction of cc (so 240, rather than 240.1). All qualities are standardized to Q1 (per hit or per health).

Sic transit gloria mundi