Posts tagged smokin mils

   On November 26, 2007 the old form of Runescape Merchanting was completely changed.  A new contraption called “The Grand Exchanged” (I’ll use ‘TGE’ as an abreviation for ‘The Grand Exchange’ throughout this post) was built  NorthWest of Varrok.   No longer would players have to spend countless hours typing “wave:red: Selling Yew longbows 650gp each ~ Pale Griffin!!!!” or “Shake:green: Bank sale!!!! 200K!!!! must buy alll!! – M4ul3r Blitz!!!” to try to buy or sell  items.  They could now quickly go to TGE, and Buy or Sell items in mere seconds – just as long as one of the millions of other Runescape Players was trying to buy/sell that item at around the same price.

 
    The way TGE works basically the same as the stock market.  The Market Price of items are simply averages of the prices that the item was bought at.  Example: If Tim C666 sold 1 of his Christmas Crackers on the Grand Exchange today for 5M gp above market price, then the Market Price of Christmas Crackers would go up 5M GP.   However, if on this very same day Ghoshi4 sold 1 of his Christmas Crackers at Market price then the “price” of Christmas Crackers would go up 2.5M (5M over market price + 0 M over Market price = 5M Divided by two = +2.5M).  With this information, try to answer the following question, if you figure it out, post the answer and if your the first person to get it right I’ll give you 666 Teddy Points - If today: 6,000 Glories were bought at 1.5K under market price, 15,000 were bought at 1K under market price, 30,000 were bought at market price, 10,000 were bought at 1K over market price, and 2,000 were bought at 1.5K over market price, how much would the price of Glories rise?

    Anyway,  people realized they could drive the price of an item up if they bought a bunch of it at Maximum price because the average price it was bought up would be higher.  So they got their buddies together and all bought a certain item at Max Price and made a lot of money when the items rose.  Soon tons of people started doing this and it got out of hand.  Some people made so much money that they had enough money to buyout an item all by themselves.   Jagex obviously never intended for this to happen, so they introduced “Trade Limits” which kept people from being able to buy crazy amounts of items in little amounts of time.  Before the Trade Limits if some guy had around 1B GP he could buy over 5M Coal in one day.  But after the Trade Limit update, it would take him over a month. if he got around 30 people to buy coal with him, he/they could buy it all in one day. 

     So, after the Trade Limit update, people could no longer buyout items by themselves, so they were stuck making clans and using tons of people to do it.  This can be harder than it sounds though because you can’t always trust everybody in the Clan.  Some might sell early because they’re afraid it’ll drop soon causing the item to go down.  But even still, many Buyout clan’s are still doing well today

   Congratulations, now that you have read all of that you should basically understand how they got started and how they work.  Now I wanna go over some ways that you can make money through these buyout clans.

1.  One of the worst methods that I don’t reccommend is to buy an item that is going up a lot in price at  at maximum price, and then sell it when it starts going down or it seems like it’s about to start falling.  This method is very risky because you’re buying the item for a price higher than it’s “usual” price, and if the item starts falling (usually because of a “dump”) you might have to sell your items for a fraction of the price.  Consider the guy who bought crystal keys at 100K and then they dropped to below 50K each, if they spent 10M on them, they would now only have 5M.

2.  A Fairly safe method - Join a buyout clan.  If you do this, make sure that you buy the item as soon as the clan announces the item.  If you buy the item as soon as it’s announced then you can usually get it for around market price, but if you wait a little bit you usually have to buy it at max price – and even then you might only be able to buy little or none of the item.   Also, it’s very important that you join a Clan that has a good record.  Right now the CCs ‘Smokin Mils’/'Smokin Mils2′ and ’2lum’   are doing very well and usually more than double the price of their items (‘Chessy018‘ is okay sometimes too, but usually the people there dump early, so if you join her’s you’ll wanna dump really early.).  Of course, for all buyout clans, you should always try to sell your item before everybody else does.

3.  Buy commonly bought out items at Min price when they’re close to their “normal price”.  This method is great for people who have a lot of money, because they can put more money into an item than you would be able to with a buyout clan.  I.E. If you started buying Crystal Keys with Smokin Mils as soon as the item was announced you would probably only be able to buy a few hundred keys – which is fine for some people with less money.  But, if you were already buying Crystal Keys before it was announced you could’ve bought thousands of them.   Of course the trick in this is that you have to guess when an item is about to be bought out.  This may sound difficult but it’s not really that hard.  Let’s look at one of my favorite items for this kind of Merching – Rune Boots (scroll down below and look at pic).  As you can see, Rune Boots were already bought out unsucessfully twice this month by smaller Buyout Clans.  The reason I say that they were bought out unsuccesfully is that they didn’t have enough money to make the item rise very much, or the Clan Members members dumped early for whatever reason.  So, like I show in the picture, the times to buy are right after the buyouts when the item is getting close to it’s “normal price”.  Anyway, one of the most important things when it comes to doing this sort of Merchanting is that you sell the item as soon as you can at Maximum price.  You might be tempted to hold onto them in hope that they’ll rise a lot, but you shouldn’t unless they were bought out by a very good Buyout Clan (like 2lum or Smokin Mils).  The reason I say this is that, for the most part, buyout clans usually don’t succeed in making the item go up a lot  and if you don’t sell as soon as you can the item often drops – as is seen with rune boots.

Alright, thanks for reading the post!  I’ll make another post soon about whether doing Buyouts are against the rules or not.