'Hovering' new sims causing deflation?

With all the new sims just kind of hovering out there on the borders, are people delaying more land purchasing decisions until Linden labs puts them up on the block?

Why buy now at 5$/m2 for non snow if you can just hang on a bit and buy at 1$/m2 for non snow?

At GOM Linden$ dropped from 1.40 to 1.10 yesterday when IGE stopped buying. In L$ terms this might cause some inflation soon. I already had to raise land price in snow sims because a lot of that land I bought for US$.

As I left L$ price of non-snow unchanged, in US$ terms my non-snow land is now cheaper than ever and last night was selling fast. Awa - sold out. Batak - sold out. Zazi - sold out. Federal, Raiden, Muir, Zuni, Sami, Ohno - only few pieces left. The only non-snow I still have big area for sale is Ebisu lake, Kolemanoku flat hill and terraformable Ritch. And looking at new sims, none of those offer similar terrain like those 3 places.

Reasonably priced land sells. The 'reasonable' price is now currently falling. Those that don't adjust will be gnashing their teeth in frustration, much to my glee.

My favorite is the large land-owner cashing out, but still pricing outside the market. I guess they have a lot of time to kill until it sells.

LMAO - when I first read this, I thought that AVs flying and hovering over the new sims were deflating. I thought - cool I will have to try that!

We all know that I don't have one ounce of business sense inside of me...

But...

I can't help asking this question.

You're saying that because IGE will not purchase any more Lindens that...

a) All monies being sold in game will now have to go through the GOM, and

b) Since everyone will need to use GOM to sell their Linden's that there might be some maneuvering of Linden prices downward so that your own personal blocks of Linden's will sell...

and

c) Because you can't sell them at IGE at $1.40 and might be taking a loss in the land speculation associated costs that inflation (higher prices) for land, etc. will happen because the Linden value is lower?

Well hell.

It's really simple for me.

Don't sell your Linden's on GOM.

Hold onto them until IGE purchases them again.

But until then, I will watch as 200K+ or more per week hit GOM to be sold, I will watch as the price for Linden's goes lower while the price for auctioned land stays about the same.

The only people who will flood the market at GOM now are those who used IGE exclusively for their large Linden transactions. With IGE closed, watch as the market is flooded with your own monies.

Simply put, people can't always wait to sell their money. They have bills to pay, habits to feed.

Anshe, glad it is working out for you.

I am laughing my ass off thinking about the Visa Card bill that some people are gonna be getting, and keep thinking about the old saw about mixing business with pleasure...

It's called a job
If you're relying on SL to pay your bills for you, man, those are some seriously fucked up priorities. Don't spend more than you can comfortably afford.
Besides, weren't you a dotcom millionaire or something?

It is very simple: most new land is sold at auctions for US$. If US$ gains against L$, then new land at auctions will become more expensive in terms of L$. This will of course drive land price in world up as soon as land owner realize this. Which usually take some time and is a gradual process.

If you want wait for IGE buy at 1.275 US$ per block again - good luck! They sporadically take small orders once in a while now. But basically the speculation bubble is in process of bursting. It might just happen now. Or it might be delayed some more. But eventually IGE will either go out of business or lower their price until supply and demand even out. At 1.275 the L$ holdings of GOM were growing by more than one million per week. So at what level might demand and supply even out? 1.10 ? 1.00? 0.90? I don't know. But certainly not 1.275. Not if Linden Lab won't suddenly reduce dwell bonuses and stipends or list more land auctions in L$ instead of US$.

So who will be mainly affected? This time it is the currency barons, all people who were or still are hording L$. Since I stopped keeping stock of L$ since the IGE bubble was growing and growing and growing at insane speed I adjust my auction bids and my land price to what I believe might be realistic L$ exchange rate in near future.

It is simple: when IGE stop removing L$ from market, then more L$ will be in the pockets of people and can be spent in the economy. More L$ compete for same amount of land, but people who sell things should also earn more L$ because more money is available to be spent. So, IGE hording L$ has lead to deflation, when they suddenly stop doing so I would expect some inflation.

For 90% of people who don't keep many L$ on their account, the result will be same as for Americans when the US$ dropped from 1.20 EUR to 0.80 EUR: It won't really matter.

and when i read it I thought a hovering sim was perhaps a high altitude sim placed above my own... just a load of empty sky and a chance for LL to sell the space twice, ground level and hovering... that prob would cause deflation too

Eggy, please edit out comments about my personal financial situation. They have absolutely no bearing on the topic at hand.


Anshe - it's funny, I often use the terms deflation in relative terms to the USD rather than the L$. This can make the conversation a bit confusing.

It's unfortunate that there were no programmatic ways to change prices in this game. That way at least we could target our prices for various things to the exchange rate on the GOM

IGE is still purchasing L$, at least in limited quantities this morning - it was at $51 for $10k, which was $1 off from the price a few days ago. They are apparently slowly beginning to purchase again.

PS - bravo to Anshe on "currency baron". We need a new evil to bash. Land barons are so passe.

So the SL world isn't coming to an end?

When I first read this, I thought LL was making floating islands. That hovered about 100 meters above normal land.

ahah ok well I had to use colorful imagery to get people to read a rather dry subject It's the natural marketeer inside of me

They should move to an open market and do cross game trades!! Someone sell them some software

And Blaze, if you spent the money from SL and inet and your PC and sold t-shirts or wodden toys at a flea market, you'd be making far far more money that you would playing SL all weekend.

How it is or how much or whatever I am doing or will do has no bearing on this thread. I am merely interested in the effect that large amounts of land which could be purchased have on the economy.

Please stop making me the subject of these threads. It's like you're stalking me.

Is "Isabel" part of the new sims area? A chunk of it is up for auction as of now.

Yes, Isabel is part of the newest expansion.

I think the alt av limitation was a wonderful move to curtail the deflation of L$. Alt-Avs were essentially free to sign up with the L$ bonuses converted on GOM. simple owning 10 alt avs could generate an extra 500 L$ for a player each week. I would not be surprised if there was someone out there with 100+.

You brought the idea of making RL $ into this thread. And not just to help subsidise the cost either (which it does quiet well, it more than pays for the game) but you said it was to pay bills. Psssha, maybe Porsche bills. I threw in my 2c. Relax guy, you need a break!