L$ value falling on GOM again

This time, rather than one big seller dropping L$ on the market at a low price, the price drop seems to be broadly supported as everyone tries to sell their L$ first. Is GOM having another sale on L$, or is the market really correcting, and it's time to sell L$ while they still have value?

Could this cause inflation in SL?

I unloaded mine late last week.


Free - free - at last!

If you watch the graphs and other data on the site, whenever there is a "big fall" in the current minimum selling price, there is usually signs that it's all due to a single individual or group selling a large quantity at either a noticably reduced price, or in a spread starting at the (then current) price and ranging downward.

Usually, as soon as that rouge batch of orders has been filled, the price returns to its usual range. Just think how many "the L$ value is falling" threads that have been started in the last few months, reporting that the price has dropped from the mid-3.90's down to the low-3.80's. It lasts for 4-5 days then goes back to what it was. Only to be followed a few weeks later by another "the L$ value is falling" thread when another individual or group sells a large quantity.

Not that this observation will cause any reduction in the number of such threads, since we have a one-to-many condition: Many may know that the market does this regularly, but all it takes is one who doesn't to start a thread.

But I post this for those that may be new and this is thier first of these threads. The sky is not falling... It might drop slighty, but it goes back up just as often.

Data chart from the time of this post:


Note the column of red here where an entire range of orders was placed all at one time. This pushed the minimum price lower but left a large gap (yellow). The gap WILL fill in as the red orders are filled and the lower-end froth orders slip back upwards. (Unless yet another large order is placed like this one in red, in which case this condition could last a little longer -- But that's not a sustainable senario.)

It is not as easy to speculate about seller behavior now. When 20 orders for 100k lindens at the same price appeared in the space of an hour, you could guess that it was one seller. When two days later four sell orders for 150k each appeared 2 cents higher, you could guess that was probably a different seller.

Now you can't really see those subtleties, the character of the market is harder to deduce (i.e., whether there is one or two large sellers or a whole bunch of small sellers.)

I think the L$ has held up amazingly well given the imbalance that was there.

Buster