Free Markets Rule

Gawd... I love free markets

If you look at the number of L$ that IGE Wheeling is sitting on, all bought at around US$5.00+/L$1000, its apparent that they have a bunch of Lindens that they have spent upwards of US$55,000 acquiring.

At today's GOM exchange rates, this 55K is now worth around 47K. That's a big minus in my book.

They offer absolutely no advantage over GOM, other than the fact that you can get your L$ with a credit card over there. If you buy your L$ on IGE and not GOM, you're being silly.

On the other hand, if IGE ever decides to get out of the L$ biz, and somehow tries to dump the assets they're sitting on, the L$ is going to take a tumble.

still sitting on the bearish side...

- Ace

P.S. I exchanged a few emails with IGE, offering to help them dig themselves out of this hole. They declined the offer.

Please do not remind me Ace, my premium account gets paid in lindens.

I am actually rather scared about the idea of them dumping the lindens, and causing a market crash, yet I seriously do not think they would be that stupid to blow all their cash in that manner.

My premium account gets paid in GOM trading profits. Buy low, sell high, rinse, repeat.

- Ace

Not surprising they declined Ace - I'd bet they have a plan in mind to do the very thing you mention - sell low, buy lower, rinse, repeat.

Well, IGE recently adjusted their prices (actually *raising* the price of some of their smaller L$ sets). They're still ~15-25% above current market rates -- even with the GOM cash deposit fee.

They seem to have put themselves into a bit of a tight spot. If rates don't increase, they take a decent-sized hit if they manage to sell off their inventory. A sufficient rate increase to actually eliminate the loss would likely require that they increase their buy-price, and keep buying. This would probably have the effect of temporarily inflating the rate while increasing their holdings. Once they slow down their purchasing, the market will once again adjust itself. And the cycle repeats...

Yeah, and the reason they can't just hold their own rates and sell above what they buy for is what? All they need do is wait it out and they will again be cheaper and better as L$ rise just like they were a month ago before GOM began crashing and the L$ dropped by 30 cents.

Some people don't like going through GOM anyways.

Why?

When I can start selling Lindens as fast and easy on GOM that I can on IGE, I would switch... but right now... IGE offers convenience.

Well i can't speak for more than myself but personally when i first started the game i found both sites and compared their business models and how they would affect me and my SL-business. At the time GOM rates were actually higher/L$ than IGE so it meant basically either dealing with the GOM system or taking a slight loss on my L$ sales for convenience and I chose #2. Because of that decision im able to work with a constant exchange rate rather than something that flucuates ridiculously based on things even the ingame market really doesnt control. Also, I've always had immidiate responses from IGE and just as immidiate payments, day or night which is not something I believe GOM is willing to do. Since the time I made that decision it has seemed to only be more and more fortuitous, as the L$ continues to lose its value and people dump more and more onto the GOM market. Only time will tell if that will change but as the game grows it only makes sense the L$ will be worth more. The only way previous highs could stay as the all-time peak in L$ value is if the Linden's specifically wanted it so.

I'd much rather use GOM, but right now IGE is buying at $4.90 per L$1,000. No commissions. If I put credits up for $4.90 a block on GOM they would never sell.

Where is Alby Yellowknife? Why has he not responded...