Erasmus Torn
Torn Intergalactic
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Posted - 2008.05.07 12:42:00 -
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Hmmm... A couple of thoughts. Gold became a standard because it doesn't oxidize - which we know as rust, and it is pretty and was scarce. Scarcity breeds value is the first law of economics. Gold is a "store of value" that nations could agree upon to trade - a common denominator if you will versus currency which, well you know... But it does fluctuate in value like any commodity with supply and demand, is also subject to the attached currency (like the current oil price valued in dollars), and is consumed. Hell, I drank some Goldschlaeger last week!
The real driver of gold prices is the leverage in the world economy. When the leverage goes down gold goes up and vice versa. Currently the world economy is de-leveraging. Gold also can appreciates during inflation because it is a "real" asset versus a paper one. Gold also can appreciates in deflationary times like the U.S. Great Depression because it also is a crisis hedge as was pointed out. Serious inflation and deflation are both times of "uncertainty" (read risk). It works both ways because it is a universally recognized "store of value." (FYI - a basket of foreign stocks is not an inflation hedge because it is a paper asset - a "real asset" would be like property or something you can drop on your toe and it would hurt). A good read is Peter Bernstein's "The Power of Gold" and also another good read, before gold there was...wait for it "Salt" - another store of value literally needed for life.
So in a long-winded way, getting to the OP's question seems to be "Is there a universally recognized store of value in Eve that resembles gold?" Well, there is no currency "problem" since isk's are universal - so by default the ISK is the gold standard. We all agree on its value and it will appreciate and depreciate like gold.
If in Faction Wars there are Amarr Sovereigns, Caldari Dollars, Gallente Francs, Minmatar Guilders (and even, Angel Peices of Eight!!!) ((No slurs intended btw matching empires with currencies)) then this question become really important as the success and failure in war affects the currency value. Profiteers and black marketer's rejoice. Or what happens if the new player council decides to let alliances issue currency? Will Bob's float against Goons? The tides of war impacting prices? Sorry - a tangent, but a fun one in such a complex and sophisticated game as this one with clearly some very smart players.
Back to point - another aspect of gold is that it is immune to technology which T2 BPO's are not. T3 and even T4 or Jovian stuff awaits us in the future just to keep the game interesting and give players a goal to shoot for - there always will be a better, sexyer boat to buy if CCCP is as smart as they seem to be. (Perfect - no - but I've been playing 3 years so...) So BPO's are not it.
Good call on the Rhodium except it is not available enough to be used as a transactional currency. Which is also why the world moved away from the gold standard - the world economy outgrew it. But it still exists in places of uncertainty in the Third World and also Paris
So is there a universally recognized store of value better than the ISK in Eve? Do we need one? Is inflation/deflation just being in the wrong mod class at a time of uncertainty (patches)? Much Respect to all on this forum.
Safe skies unless they are mine - Erasmus
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