The Money Tree

Day 424, 11:24 • Published in South Korea USA • by Endy

This is largely a reprint of a eWiki page I created to help new players, most unfortunately never find it.

Speculating on the Monetary Market is one of the best ways to grow your wealth when you have just started playing. It is inherently risky, but also offers the possibility of substantial profits. It also adds additional excitement to the game offering more avenues to profit outside of standard work.


General Notes

In general unless currency or gold is needed immediately, it is better to sell rather than buy. In order to see the exchange rates for all the currencies make then immediately remove an offer for that currency. This opens an "account" for that currency, allowing you to see the exchange rate.

Scalping or Double Sell Method

This method uses overvaluing to achieve a profit. Typically currency is more desired than gold resulting in an imbalance between the markets.

Example:

First 1 Gold is sold for 98 FRF

Next that 98 FRF is sold for 1.372 Gold(0.014 gold/FRF)

The net gain will be 0.372 Gold.

Most of the risk for this method comes in between the two sales. Market conditions may decrease profit or even result in a loss.

Double Buy Method

In the Double Buy Method either currency or gold is being sold at less than what it can be purchased at.

Example:

Person A is offering USD at a rate of 0.016 gold/USD

Person B is offering Gold at a rate of 56 USD/gold

Inverting the gold/currency rate gives a rate of 62.5 currency/gold. Because Person B is selling at less than that, profit can be made from the difference in the rates.

The beauty of the Double Buy Method is that the undervalued offering can be repeatedly purchased using the proceeds of the purchase until its gone. This is an essentially risk free form of investing, with the biggest risk coming from the possible disappearance of the undervalued offering.

Buy-Sell Method

This method, combines some of the risk associated with the Double Sell method with the devaluing used in the Double Buy method. It is useful when, in order to profit, the devalued item must be re-sold rather than used in a purchase.

Example:

USD is selling at a rate of 0.014 gold/USD

Person A is offering FRF at a rate of 1 FRF/USD

FRF is selling at a rate of 0.016 gold/FRF

In this case FRF is purchased with USD than resold for a profit. The risk stems from the possibility that the FRF may decline in value before a sale can be made.

Sources

* Turning Gold into More Gold

* Currency

Tools

Scrappy

http://erepublik.ws/tools/currencies/international