RuneScape Wiki Post – Issue #3: Grand Exchange Merchanting

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Issue #3


Grand Exchange Merchanting (or simply GE Merchanting) is simply arbitrage while utilising the Grand Exchange as a means of buying/selling a high amount of items for a profit. It operates on the fact that the drops/rises of the price of an item is dependant on supply and demand. GE Merchanting takes advantage of this and uses it to its advantage, effectively allowing clans (e.g. merchanting clans) to manipulate prices as how they see fit.

Types of merchanting[edit source]

There are basically two types of merchanting:

  • Clan merchanting
  • Individual merchanting

Both types of merchanting have their own set of pros and cons. Allow me to elaborate:

Clan merchanting[edit source]

If you have been playing the game as everyone else has, I am sure you would have noticed merchanting clans (“merch clans”) popping up all over the place. For those players who have not heard of these clans, they are simply clans that are set-up by players with the main purpose of “uniting” a group of players into merchanting a certain item.

Why this works[edit source]

This works mainly because the drops/rises of an item are dependent on the demand.

  • High demand => Increase in price
  • Low supply => Increase in price

Clan merchanting does this to a degree which may be termed as perhaps, overkill. They get many players to put offers for thousands of a certain item at a high price (usually at maximum). With the supply being sapped immediately, there is a high demand and an extremely low supply:

  • High demand + Low supply => Greater increase in price

This leads to a dramatic increase in price. If you do not believe me, take a look at some of the items below:

Regen bracelet
RegenbraceGEChart.png

As seen quite clearly, the Regen bracelet went up by more than 100,000 coins before the merchanting clan decided to dump the item, leading to a quick drop in price. For merchants, such drops/rises in prices are common occurrences. Something that marks a commonly-merchanted item is the drops and rises in its price. Take these two graphs for example. They happen to be rather commonly-merchanted items.

Amulet of power
Powerammychart.png


Red spiders' eggs
RseggsGEChart.png

Cons[edit source]

However, depending on what time zone you are in, you might miss the “dump time”. This “dump time” is basically when the clan decides to sell/dump the item. Should you miss it, chances are that you will be losing a lot of money. With other members of the merchanting clan selling the item long before you did, any demand for the item is probably long gone. And with many other hapless players such as yourself, there is an oversupply.

No/Little demand + High Supply => Greater decrease in price

Individual merchanting[edit source]

Basically, individual merchanters are players who are not affiliated with any clan chat and choose to rather buy/sell items on instinct, not whether a merchanting clan is merching/dumping a certain item.

Pros[edit source]

It can be considerably more profitable, as individual merchants have the chance to buy a certain item in greater quantity. This is because of the lack of any clans sapping the supply of that item. If they bought a commonly-merched item and things go their way, a merchanting clan will start merchanting that item, causing it to rise in price. This way, the individual merchant need not compete with other merchants to purchase certain items. It also allows them to purchase the item at a relatively low price.

For example:
I happened to purchase 5,000 Amulets of power at 3,100 coins each. Later, a merchanting clan decided to merchant it, causing it to rise in price dramatically (as seen in the graph above). I later sold all of the amulets at 3,500 each, earning myself 2 million coins.

Cons[edit source]

Things may not always work out your way. You may have to wait days, weeks, or even months (depending on the item you bought) before the price of the item begins to rise.

Conclusion[edit source]

Well, there you have it, this is basically an overview on Grand Exchange merchanting. Hopefully, this should give you a more in-depth understanding on what merchanting is all about and how profitable it can be. C.ChiamTalk 16:29, 15 May 2009 (UTC)

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