Today I'm going to explain what Cam Newton has to do with WoW Economics. Cam Newton, the Heisman winning QB from Auburn is set to enter the NFL draft. There is speculation that he will be the first QB taken. If that is the case, he will sign for a lot of money. Now, how does this apply to WoW?
Well, Newton is a relative unknown. This year, his first of seeing any major playing time, was a complete success at the college level. However, history has shown that these "one year wonders" often bust out in the Pros. YET, that does not stop someone from paying a premium price for them. This is because nobody wants to be the one to "miss the boat" on something.
The same can be said for WoW. When new recipes, pets, or boe's begin to drop, people will pay a premium for them, despite knowing whether or not they will be any good. Think of the Elementium Geode, when these bad boys first started appearing, people were paying up to 10k for them. Now they barely sell for 1k.
The moral is simple, if you get a rare drop, specifically a new one (think of the new recipes in 4.0.6 that will be dropping), post it on the AH for an outrageous amount of gold. There is a good chance you'll sell it. That being said, do not be "that guy" who is willing to buy at outrageous prices on an unproven commodity.
Cheers - Brouck
Hahaha, I love it. Excellent post for sure. You've definitely made me re-evaluate my thoughts on the BoE Meta Gem recipes. I was more than willing to snatch up anything under 10k, with the hopes of selling the meta cuts for a minimum of 1k each. But I might need to put some more though into that strategy, and see what I can find on the theorycrafting of these gems. If they're going to be BiS and eclipse all others, it definitely seems worth it. However, I really don't want to be stuck with a cut no one wants, and be out a ton of gold.
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