Economic Update - Where to Invest?

Day 1,166, 15:32 Published in Australia Australia by Savonrepus

The outlook for the eRepublik Economy is still not good with the Manager work rule. As company mangers acquire more and more companies the over production problem becomes worse. Overproduction keeps currencies depreciating as prices and wages continue to fall. Lower currencies, lower gold incentives and every opportunity to spend gold directly, - like gold training and gold boosters means that it is more important than every to look after your gold resource.

In the end as a citizen the main goal of your economic endeavours is to boost your damage and to have resources available for when the major battles happen. Sure gold training helps but so does ranking up by fighting. One thing to assist this is housing which gives you a wellness boost at the start of the day giving you extra non gold fights to increase your rank and increase your damage.

If you are looking to invest in companies however and have free gold available it is still a good time. Anyone with an idle stone, housing oil or MT company you should be brushing off the dust and making sure you are working them at least as a manger. The admin restrictions in creating new companies in these industries means that they will continue to command a price premium over others. The price premium is especially marked in oil/MTs due to the recent commoditsation process resulting in the cost of moving to far zones to increase significantly. Despite the fact that prices are falling I say it is a good time to invest because with manager work your production cost of your own labour is very small.

Weapons are also still a great place to invest but you have to be prepared to build stocks. When major wars are happening weapons move very fast but in the quiet times and I say this with all the disclaimers in the world to maintain political correctness - the weapon manager suicide rate can increase significantly. As an encouragement to build weapon stocks with the international fall in currency governments are going to find it increasingly difficult to find the capital to maintain stockpiles and the responsibility will be transferred to the private sector.

RMs are still a great place to invest due to the high RM requirement to make a manu. In Australia however go for iron over grain - you get a 25% extra productivity in iron and the end market price is still higher for iron. If you have an iron company and prices in Australia start falling you have a strong export competitive edge. If you are exporting however watch tariffs and exchange rates they can have a significant bearing on which is the best market.

I would keep away from trying to make money from currency trading -if this doesn’t deter you keep remembering that current game rules will continue to push currencies lower. This is not to say though at times there are trading opportunities. Due to market volatility - especially in times of major wars when gold and currency are moving fast and the spread exceeds 0.001 for currencies trading above 0.01 or 0.0001 for currencies trading below 0.01 there are trading opportunities especially where the currency for gold offer is small (or non existent). This is also handy to know when you are converting your export currency to gold.

Good luck in your endeavours just remember in the end the best place to measure the success of your economic activities is in the well-being of your citizen and of your country.