Gold and precious metals should increase in price if there are uncertainty (ex. War) in a system

[ianstrauss]

In real life market economy, the price if gold and precious metals rises as uncertainty plagues a country such as wars, rebellion, economic downturn etc. on the other hand, gold and precious metals decreases if theres a bull evonomy or economic upbeat ( increase in currency, etc)

are these factores present in the galaxy market?

 

[Defacto]

But the currency is universal, not local. It's electronically backed from outside the war zone, so really, it should be safer than precious metals?
I think the price of precious metals would drop, people sell their precious metals for Electronic cash which can't get stolen.

 

[ianstrauss]

But the currency is universal, not local. It's electronically backed from outside the war zone, so really, it should be safer than precious metals?
I think the price of precious metals would drop, people sell their precious metals for Electronic cash which can't get stolen.

Legal tender or any form of cash wether physical or electronic is rendered invaluable if there are wars. Imagine this: if a planet is bombarded, people on that planet will not think of cash because everything , even the most basic type of food will be extremely expensive due to inflation as everyone wants to survive.

people barter on those situations and usually. Gold and precious metals has best value in times of trouble.

 

[Matt168]

Apologies for going slightly off topic so quickly, but the news stories keep talking about Imperial markets falling in anticipation of the Emperor's death. Does that reflect in commodities markets in Imperial space or are these just stock markets that are not in the game?

 

[fergal]

In real life market economy, the price if gold and precious metals rises as uncertainty plagues a country such as wars, rebellion, economic downturn etc. on the other hand, gold and precious metals decreases if theres a bull evonomy or economic upbeat ( increase in currency, etc)

are these factores present in the galaxy market?

food prices change more than gold, you can't eat gold.

What should happen is make it more difficult to get to the stations when there is a war. That would then be logical for the price changes, because its harder to get in supplies.

At the moment the war zones don't do anything to stop traffic to the stations, you have to purposely want to stop at them.

 

[Llewelyn]

Food, bullets and medical supplies costs increase during times of trouble and conflict.

Gold is a shiny rock that has no practical value when people are shooting you and you're hungry.

 

[CmdrBream]

Gold and precious metals has best value in times of trouble.

Only in situations where conventional currency has ceased to function, and under such circumstances the relative value of PMs to survival goods would collapse. The situation with PMs as a safety play on earth doesn't really apply to Elite, partly because we've got a universal currency and an inflation-free economy, and partly because the events regarding PMs over the last decade or so have been a gambling play based on the notion that other investors will respond to dogmatic "PMs are a safe haven" thinking (which they did) and that other investors will be willing to be the greater fool at some point (which some were).

That said, I love the idea of survival goods increasing in price in conflict-ridden (or otherwise excessively dangerous) systems.

 

[Quineloe]

Here's what should happen in Conflict zones.

Prices for commodities that are produced in the system should go down, as people are trying to convert their at-risk-goods into safe credits. The Supply amount should no longer be raised since production has stopped, until the stations are completely sold out.

The demand for goods that are required for the system to produce their goods also disappears. Only very few people are willing to purchase goods from traders at a greatly reduced price, in hopes of coming out ahead of everyone else when the system normalizes (like speculating with stock)

The demand for goods that are required to live goes up slightly, as it is uncertain when the next delivery is coming, especially true for systems that rely on outside supply to survival like Extractors, Refineries, as these have no food production of their own. So things like Food, Power generators go up in price slightly.

The demand for goods that are actually war related should skyrocket. Hand Weapons, Battle Weapons, Reactive armor, Combat stabilizers, N-L-Weapons, Basic Medicine, Fuel should go up to easily 150% Galaxy average. This type of stolen goods can be sold at the commodities market without issue (or create a Black market at every station in a war state that pays 100% instead of 50% for these goods only)


The last thing this economy needs is having arbitrarily inflated prices of the most profitable commodities (gold and Palladidadium)

So to put this into an actual example, imagine a system with Industrial stations goes into Civil War.

From top to bottom

Hydrogen fuel supply starts to go down rapdily. It is being sold at 50cr/t and the supply also drains over time. Once it's drained, it becomes demanded at 150cr/t

Clothing and Domestic Appliances are in Supply, but the price drops significantly until the entire stock is sold out. Then it sits at LOW - 0 until the conflict is resolved.
Demand for Consumer Tech drops to LOW

The demand for all food items rises to HIGH, for example the price of Animal Meat rises to 1800cr

The demand for all industrial Materials drops to LOW

The demand for Drugs rises to HIGH, the price raises similarly to food.

The Supply for all machinery drops to 0 as stock is being bought out. The price drops considerably, for example Crop Harvesters for 1500cr.

The Supply for basic medicines becomes a demand similar to fuel.
Combat Stabilisers rises to a very high demand, 10k per unit. (I think Cstabs are 7k GA?)

The demand for metals suffers the same fate as the demand for industrial materials.
Same for Auto-Fabricators, HE Suits and Textiles.

Computer components stop being supplied, but the stock that is there can be bought for ~250 credits each until sold out.

Weapons and Armor prices also skyrocket to 150% GA. Battle weapons sell for 10k a unit, making even the huge distance trips necessary to find battle weapons trips worthwhile. N-L-W climb to ~3500 credits.