It goes without saying that the merchanting clans begin purchasing the item hours or even days before they release the item to the public. Notice how after a dump is called, a merchanting clan leader usually needs a couple days to decide on an item? Some RuneScape merchanting clans say they are taking ideas for the next item. It remains to be seen whether or not they really are or are just running a bluff.
When the item no longer is in supply, the merchanting clan announces the item to the public. RuneScape players are told to buy the selected item at maximum price on the grand exchange. The reason why is because the average price an item sells for on a given day is what determines the next day's price.
The merchanting clan relies on the public and their ranked players to advertise the merchanting clan at the Grand Exchange. RuneScape players spam the grand exchange; often using autotyper bots to repeat the same message to join the clan. RuneScape players for advertising are awarded with rank in the clan.
Inside the clan chat, the leaders sell the public on how great their item is and how this merch is epic. RuneScape players, in many cases children or teenagers who don't understand economics, believe if they buy the item that it will really go up. As the item goes up, they believe. It is very easy to get caught in the hype, thus losing clarity of objective judgment in regards to the item.
At some point, the clan leaders decide to sell out. They sell their entire item stock on the grand exchange at maximum price, where clan players, and sometimes, the captains and other clan ranks, continue to buy. This is where the money gets made. The people who call the shots buy at the lowest and sell first, getting maximum profits. Everybody else is left hanging.
The brutal cycle has begun. The ranked members who have been advertising realize they have been ripped off, and thus ensues a vicious, every man for himself push to sell or dump. Using their privilege to talk, ranked members continue to advertise the clan and even reassure potential investors that the item is all right. At the same time, they have the item for sale in all six grand exchange slots.
The second way in which RuneScape players unload the busted item is by trading. The idea is to trade the item at its current inflated value for anther item that is stable. Before accepting a trade, it is wise to research the item and not accept if the item is atop a steep incline or has just peaked in price.
Source: RuneScape, some insight on Merchanting Clan methods by Hartford RuneScape Examiner (Mr. Dave.)
Published by David Farrell
David Farrell, "Mr Dave," is a freelance writer, the official RuneScape Examiner for examiner.com and a UConn Certified Master Gardener. Mr Dave's interests include RuneScape, Gardening, Crafts, and writing.... View profile
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