Why Having Too Much Gold is Bad… or at least inefficient

Economists call it liquidity. To WoW players it is the sick amount of gold you have collecting dust. Maybe it makes you feel good to see that crazy high number. You have made some good decisions in the auction house or made a bunch of gold crafting, or you spent a lot of time farming. (ick.) The point is you amassed a WoW fortune. Congratulations. So what are you going to do with all of that gold? You could buy the cool mount with a passenger seat or other status items to show how rich you are, but that would have the unfortunate side effect of making you far less rich.

The problem is that you can’t swim in it like Scrooge McDuck. Looking at it makes you feel good I’m sure. You could do that. It would certainly be a better idea than the mammoth mount. Let’s make that option number one: Staring at your money.

What is even better than that is investing the gold. There are no stocks or bonds in WoW though, and the bank doesn’t pay interest. So you have to find out where to put your gold. The one thing we know for sure though is that gold sitting in your bag is doing nothing at all for you. (Above what you need for expenses of course) What you should want is to have your gold out working for you. There are tons of opportunities out there.

1. Pick up enchanting. (Just not on my server.) Disenchanting has made me more gold than everything else I’ve done in the game put together. Level 35 alts can disenchant just about everything in the game but Northrend epics.

2. Lower your profit requirements. Whatever markets you make your gold in, take a slimmer profit margin. This will increase the amount of capital you have invested in the market by giving you more opportunities.

3. Diversify. Tread into new territory. It is great to be an expert in a niche market, but opportunities can quickly dry up if your activities are limited to one segment of the economy.

4. Dig deeper. Look at your professions closer. Where can you make more profit? Read more blogs like this one. There are lots of people with different theories. Pick and choose what you think would work for you.

5. Don’t be afraid to lose. Everything might not work out with every investment. That doesn’t mean to stop investing. You learn from your bumps and bruises.

Whether you decide to invest or just stare at your gold make sure to have a good time, and please don’t buy that silly mammoth mount. It doesn’t make people /gasp, it makes them /giggle.