Value of USD vs. Gold
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by Clayton H
As some of you probably agree, the value of the USD has declined over time and can lead to a ripoff when put into comparison with GOLD, and causes troubles when exchanging in the monetary market.
When selling gold in the monetary market, the lowest available exchange rate at press time is 1 USD= 0.015 GOLD. Translating this ratio yields a result of 66.7 USD for every 1 GOLD. However, when purchasing gold, the lowest available exchange rate is 69.389 USD for every 1 GOLD. Therefore, this bilks people of money when they exchange into gold, for on a return exchange the user would lose about 3 USD. Why wouldn't the exchange rates be equal?
Progression through eRepublik requires sums of gold that can be obtained primarily by converting from USD. The value of the USD has decreased, and this also amounts to losses when exchanging into a foreign currency. I therefore request that the value of exchange rates be regulated, to a point, and allow for easy exchange without losses. Especially on large scale transactions do these sums of USD add up. Either increase one or decrease the other, just make it so that a smooth flow is reached between the two currencies and, ultimately, the foreign currencies as well.
Please notify me of any errors in my information, or logic.
Thank you
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Comments
Sell your stuff instead of buying it...
the error of your logic is this,
why would anyone bother to offer selling/buying usd or gold
without profit?
If you sell you set prices... Sell gold for USD at the prices you want sell usd for gold at the prices you want... Never buy.
The exchange rates aren't equal because they can't be. The USD is at 0.015 gold, or 66.6 repeating for 1 gold. You can only adjust by thousandths, but 0.014 means a 71.4 USD per gold rate. The market wants the exchange rate to be in between, but eRepublik's monetary market rules don't allow it.
Exchange is never equal for ANY currency!
"Why wouldn't the exchange rates be equal? "
Because somebody has to put up their money to make it equal.
If you have the pockets, make it happen. Otherwise, let the free
market dictate what should be the proper Bid/Ask for the USD/Gold pair
Look at RL economics. It's the same way. Trading commodities is good if spot price goes up considerably. It isn't something that you day trade...
Clayton, I think this is a good idea, but I also think that Qumni brings up a good point: why do something without getting a profit? That's what it's alll about, man. We both know this. What else are we doing in 5th but trying to get more money?