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Grindkore
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Posted - 2010.12.01 15:45:00 -
[1]
Hi guys,
I have been wondering for a while about the possibility of someone with large capital affecting supply/demand balance of various commodities and manufactured goods. For example a mining/industrial corp buying out most commodity ores, thus increasing the production cost for others while maintaining own manufacturing at increased margin.
This is an oversimplified example of course, however just curios if this is a viable strategy.
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Cergorach
Amarr
The Helix Foundation
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Posted - 2010.12.01 15:56:00 -
[2]
 Originally by: Grindkore
Hi guys,
I have been wondering for a while about the possibility of someone with large capital affecting supply/demand balance of various commodities and manufactured goods. For example a mining/industrial corp buying out most commodity ores, thus increasing the production cost for others while maintaining own manufacturing at increased margin.
This is an oversimplified example of course, however just curios if this is a viable strategy.
Yes it is and it happens on a daily basis. The issue is that folks will eventually jump on the same bandwagon, driving down prices and no entity in EVE has the isk to keep on top doing that with the same item. So it is usually done with items that are of limited supply, it takes a while for the price to adjust, manipulators sell their stock at the highpoint. After that a lot of folks have already jumped onboard and instead of the price correcting to the previous price, it usually drops a lot lower. So manufacturing those items during the low point becomes unprofitable, so it's usually done by traders instead of manufacturers.
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Tasko Pal
Aliastra
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Posted - 2010.12.01 15:57:00 -
[3]
I've heard rumors of some really sophisticated market manipulation too, ten moves ahead kind of thinking. Like buying a bunch of low volume stuff and posting on MD five minutes later that you think a market manipulation attempt is driving the price down.
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