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  1. #1

    Pyrite Ore and me: get out of dodge, or risk it?

    Afternoon folks,

    I apologize if this is in the incorrect forum. I had thought to put it in the speculation forum, but since it deals with the here and now more than with what may be, I decided to put it here. I also looked on the first few pages to see if there was a topic already that may have helped, but was unable to find one.

    As you can tell, I'm new to posting here. been around for a few weeks reading and gathering tips and tricks on playing the market. Decided to register finally so that I could I discuss matters and finally give rep to those who have posted great information that has helped me get to where I am (admittedly not far as of yet, but that's my doing.)

    At the moment, I have no real market. I've dipped my toes in glyphs (setting up tsm is still on my to do list) gems (the market is rather flooded at the moment) and enchanting mats and scrolls, mostly Abyss shatters ( my most lucrative venture so far)

    My question is this; I have put about 8k of my rather meager savings into stocking up on pyrite ore in anticipation of 4.2, which is still a ways away. based on the information I've gathered from here and other sites, and until a new ore is officially introduced, I've felt that the profit potential from this ore is massive, though not massive enough to sink ALL of my money into.

    Recently on my server, Pyrite ore prices have skyrocketed to almost double what they were when I was gathering my stockpile. (through my snatchlist, I've payed between 40-100g per stack, with an average of 90g spent per stack) I've done some quackulations, and factoring in the deposit costs, I'm looking at around 7-8k profit if I were to sell my ore as is rather than wait for 4.2.

    So do I play it safe and capitalize on a rising market for this ore (I'm assuming this is due to more people reading on the possibilities of epic gems from pyrite) or do I risk the possibility of a new ore, or even the announcement of one (which would of course cripple pyrite ore sales) and wait to make a killing in the first waves of a new epic gem market?

    TL;DR- Do I make the safe money, or do I risk my investment in hopes of larger piles of cash?

    Thanks for running a great site guys. I hope do be able to add my two cents as I become more experienced in the goblin world of profit. cheers!

  2. #2
    Reverb's Avatar
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    If you do not have a lot of capital currently I would focus on investing the present amount into investments that are going to turn around quickly and increase your purchasing power. Investing in Pyrite Ore long term is pretty risky, so a great deal of your wealth on that speculation (should it not bear fruit) would be devastating. Since you have enchanting and inscription, focus on glyphs (using cataclysm herbs to make the glyphs so that you can subsidize your glyph production cost with inferno inks/inferno inks crafts) and relics (if they are profitable on your server), and taking advantage of cost discrepancies with enchanting by disenchanting items and then selling the resulting materials.

  3. #3
    Thank you for replying so quickly reverb. I know that while the market is at a high point at the moment (and has been for at least a week and a half) I also know how quickly it can crash.

    When it comes to glyphs, I have a finger in them at the moment. While I see a steady return on investment and a relatively large profit for said investment of mats, It's an incredibly frustrating market, for reasons that I don't have to elaborate on for most folks here.

    As for enchantment, I'll try going the route you suggested, while maintaining a hand in abyssal shatters (for some reason, people on my server list the crystals at incredibly low prices, and the return on the dust and essence is excellent)

    Do you think I should return A decent chunk of my pyrite stockpile to the market, to get a return on investment, while keeping the extra ore in anticipation of an announcement? I'll also of course have to be careful about flooding the market with ore, as undercutting (especially on the weekends) is a veritable orgy on this server.

  4. #4
    Reverb's Avatar
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    Quote Originally Posted by JTblue View Post
    Thank you for replying so quickly reverb. I know that while the market is at a high point at the moment (and has been for at least a week and a half) I also know how quickly it can crash.

    When it comes to glyphs, I have a finger in them at the moment. While I see a steady return on investment and a relatively large profit for said investment of mats, It's an incredibly frustrating market, for reasons that I don't have to elaborate on for most folks here.

    As for enchantment, I'll try going the route you suggested, while maintaining a hand in abyssal shatters (for some reason, people on my server list the crystals at incredibly low prices, and the return on the dust and essence is excellent)

    Do you think I should return A decent chunk of my pyrite stockpile to the market, to get a return on investment, while keeping the extra ore in anticipation of an announcement? I'll also of course have to be careful about flooding the market with ore, as undercutting (especially on the weekends) is a veritable orgy on this server.
    I would liquidate all of my pyrite ore in your position, not because I do not believe in the speculation (I have a large amount), but because you will be able to invest the money gained from that sell into other markets, level additional professions and get into more markets that way, or become involved in flipping items for profit that are not risky (if you buy at a low price point) or require a huge investment to make worthwhile. If you have a JC already you may be able to prospect all of your pyrite for profit without having to go through the auction house with it. This has the benefit of keeping the pyrite ore away from potential competitors as well, but most people have been stockpiling for a while now who are interested in the speculation that epic gems will come from pyrite ore so I am not sure that doing this will have much effect. What's nice about glyphs is that the deposit on them is extremely low, meaning that even if you do not sell many from that listing that you are also not losing much money either. I use the auction house to store my glyphs btw and post with a 48 hour duration (you can't sell what's in your mailbox).

  5. #5
    Vince's Avatar
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    Honestly, I'd go ahead and hold on to your stash for a little while longer. 4.1 should be out soon, and though I seriously doubt epic gems are coming out, it wouldn't surprise me too much if they snuck them in last minute. Of course, the problem with this is if the Pyrite Ore market on your server goes back down, and you miss out on a pretty good deal. On the other hand, liquidating all that ore might be difficult, as you don't want to suddenly flood the market.

    The main thing to consider is, in your current financial situation, can you afford not to take advantage of this? Like Reverb said, having current liquid capital that you can invest in short-term gains will greatly help your growth. You already have an enchanter, scribe, and JC, so you've got the major profs covered, but you might want to look in to getting alchemy for the xmutes. That extra ~16k from selling of your ore could really help level alchy, or let you buy more supplies to get a greater presence in the scroll/gem/glyph markets.

    Another option is to simply sell what you can, and then use that to buy up more ore when it gets cheap again.
    My Blog - Bank of Wukam

  6. #6

    I would liquadate before 4.1

    My opinion is tha gem changes in 4.1 (900s to 75s cut uncommon) will significantly reduce the floor under pye if in fact you you/they are wrong.

    So pye has no more upside that before the 4.1 changes went public and has more downside. It would be enough to get me to sell.

  7. #7
    ExtremeEagle's Avatar
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    For me it depends on how badly you need the gold tied up in your current stock. I have a fairly large amount put back, but more than enough liquid to work with at the moment so there's no pressing need for me to move mine.

    If there are opportunities right now to make gold that you can't take advantage of due to insufficient funds, I would consider moving it. If you don't have the feeling you need more gold, I would leave it be.

  8. #8
    As said before it all depends on your current liquid money, can you still keep comfortably on without selling it? You can do your trade - keep it, else try to sell it, either pure ore, or better as bars or after prospecting, this way you can have at least your ore removed from the game. (If selling bars sell as a multiple of four, for those that are in need of belt buckles.)

    I keep some thousand pyrite ore in stock, just as a security reserve.

  9. #9
    You haven't actually said how much your "meager savings" add up to, but I think doubling your money is a pretty good investment anytime on any scale, regardless of how much liquid gold you currently have.

    Some may disagree with me, but I don't think its necessary to milk every last copper out of an item purchased for flipping, especially if sitting on the pyrite prevents you from using that gold to invest other opportunities that pop up all the time.
    Author of "T'was the Night Before Glyphmas" Yes...~I~ came up with the name "Glyphmas".
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  10. #10
    My Liquid gold is currently hovering around 10k, not much by goblin standards, but enough to keep me in the markets that I'm currently seeing success with. The gold I would make from the ore isn't absolutely essential at the moment, but an oppurtunity to see a return on my investment here and now.

    I've settled for slowly trickling small amounts of my stockpile into the market (bars aren't going for enough to take the time to smelt them.) and watching carefully for signs of massive undercuts or flooding.

    I feel now that I may have jumped the gun when I started stockpiling pyrite. Not so much because the gold tied up in it is preventing me from taking on other opportunities, but because I was too eager to take advantage of a down turned market with uncertain future profit potential. In short, me greedy bastard what didn't think things through. A rookie mistake to be sure, but it's not all bad.

    For the moment, I'll hold at least some of my ore back from market, at least until new snippets of info become available.

    Thank you for the advice ladies and gents. My noobishness precedes me.

 

 

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