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PLEX As long term investment

Author
Dennis Vlahos
Anchorage Sanctum Naval Shipyards
#1 - 2014-03-09 21:36:53 UTC
Im taking a break from eve. I anticipate that it will be at least a year before I return back. I got a couple billion in liquid and I was wondering if it's worth the risk to convert it all into plex'es and resell them when I resub. I mean it's risky, but I don't want to return and find inflation reducing my wallet purchasing power. Worth the try ? Seeing how plex prices are on the rise and all...
Erik Sokarad
Republic University
Minmatar Republic
#2 - 2014-03-09 21:42:54 UTC
you need to diversify. dont put more than half your ISK into Plex, that way unexpected changes in market wont ruin you.
Loraine Gess
Confedeferate Union of Tax Legalists
#3 - 2014-03-10 06:41:24 UTC
On the other hand PLEX is is one of the only commodities to achieve a constant growth since the launch of the game. It is also somewhat floated as a currency besides AUR and ISK.


Worst comes to worst you'll own a year or more of playtime...
Sabriz Adoudel
Move along there is nothing here
#4 - 2014-03-10 07:08:22 UTC
PLEX is definitely my pick of the best low-risk long term investment.

I support the New Order and CODE. alliance. www.minerbumping.com

Julius Rigel
#5 - 2014-03-10 08:09:21 UTC
Dennis Vlahos wrote:
I got a couple billion in liquid and I was wondering if it's worth the risk to convert it all into plex'es and resell them when I resub.
What risk? You buy some PLEX, if the price plummets you still have the PLEX for game time, and if it goes up you're even steven.

Worst thing you can do is leave too much ISK in your wallet. That stuff is only going down in value. In the time I've been in New Eden, the value of a million ISK has gone from about 5 hours of game time all the way down to about an hour.
Elizabeth Norn
Nornir Research
Nornir Empire
#6 - 2014-03-10 09:33:13 UTC
Julius Rigel wrote:
[quote=Dennis Vlahos]IIn the time I've been in New Eden, the value of a million ISK has gone from about 5 hours of game time all the way down to about an hour.


#slavedriverproblems
Minerva Bian
MJXB Holdings
#7 - 2014-03-10 12:29:15 UTC
Julius Rigel wrote:
]What risk? You buy some PLEX, if the price plummets you still have the PLEX for game time, and if it goes up you're even steven.


While it's unlikely the price will plummet your assertion that there is no risk is still fallacious. Say right now 2B buys the OP 3 plex, and when he comes back he could get 5 plex for the same 2B, he would have been better off investing in something else. Obviously unlikely but saying 'there is no risk' from investing in a particular commodity just because you can use that commodity makes no sense.
Abditus Cularius
Clancularius Industries
#8 - 2014-03-10 13:03:37 UTC
Yes.

Ultra Protip: Buy before fanfest.
Julius Rigel
#9 - 2014-03-10 14:31:00 UTC
Minerva Bian wrote:
your assertion that there is no risk is still fallacious.
You're right, that was poorly worded. I acknowledge that there is of course the inherent risk of the price of the commodity going down (no matter how unlikely, given our/my current information).

My point is simply that if people stopped buying tritanium and tritanium products tomorrow, you wouldn't be able to pay for your gametime in tritanium, whereas if everyone suddenly stopped buying PLEX and PLEX products (whatever those are... clothes via Aurum, etc.) then you could at least keep playing for a while.

PLEX is the canned food of EVE - If all else fails, at least you don't starve to death.
joyous the
Slippery Penguin
#10 - 2014-03-10 15:42:14 UTC
My thoughts are, CCP likes plex because it makes them $, but plex prices out of control means fewer players can afford them resulting in lower subscription which costs them $ and threatens the game, thus a balancing act will be implemented and skys the limit plex flipping be damned.
Sabriz Adoudel
Move along there is nothing here
#11 - 2014-03-10 22:45:23 UTC
Short term, the only thing that really causes PLEX to fall is CCP running a significant sale on them.

Longer term, those balance out.

Given the lack of large ISK sinks in EVE, I think it is unlikely that PLEX will fail to rise in value over the next year. There will definitely be other things that will rise in value more than PLEX do, but predicting those is much harder.

I support the New Order and CODE. alliance. www.minerbumping.com

Barry Kring
Brutor Tribe
Minmatar Republic
#12 - 2014-03-11 03:35:37 UTC
Could be good short-term as well. Looking at eve-central, Jita is running out of plex.
Sabriz Adoudel
Move along there is nothing here
#13 - 2014-03-11 05:00:54 UTC
Barry Kring wrote:
Could be good short-term as well. Looking at eve-central, Jita is running out of plex.


That's probably short term speculation on the Aurum market with the new ship reskins.

I do not see that bringing any real sustained demand. The sorts of people that will pimp ships out will also be the sorts of players that try to lose very few ships. Those people have very little impact on overall demand.

I support the New Order and CODE. alliance. www.minerbumping.com

Matalino
#14 - 2014-03-12 20:36:09 UTC
I would not recommend it as a long term investment. Current PLEX prices are just returning to the highs that were seen in 2012-10. Prices dropped off during 2012-Q4 and 2013-Q1, before growing slowly through the rest of 2013. I would not be surprised if we see a significant price drop over the summer, but it could just as easily keep growing. There is no more certainty in PLEX as a long term investment than any other in-game asset.
Arsine Mayhem
Doomheim
#15 - 2014-03-12 23:22:18 UTC
Just send me your isk and I'll double it. Right away. No need to wait.
Sabriz Adoudel
Move along there is nothing here
#16 - 2014-03-13 00:19:05 UTC
Matalino wrote:
I would not recommend it as a long term investment. Current PLEX prices are just returning to the highs that were seen in 2012-10. Prices dropped off during 2012-Q4 and 2013-Q1, before growing slowly through the rest of 2013. I would not be surprised if we see a significant price drop over the summer, but it could just as easily keep growing. There is no more certainty in PLEX as a long term investment than any other in-game asset.



ISK is a worse long-term holding than PLEX. Unless game mechanics change, the buying power of ISK is just going to decrease as more and more of it is vomitted into the economy, whereas PLEX are likely to stay about the same in buying power.

That's not to say that PLEX are going to go up in the short term - I agree that PLEX are likely to drop slightly in the short term. However, faced with an option of 'buy PLEX and hold for a year' or 'hold liquid ISK for a year' - my money would strongly be on the 'hold PLEX' option.

I support the New Order and CODE. alliance. www.minerbumping.com

Dennis Vlahos
Anchorage Sanctum Naval Shipyards
#17 - 2014-03-13 17:49:44 UTC
thank you all for your suggestions
i converted about 80% of the liquid into plex

i'll be back !
fly safe o7
Celeste Taylor
Ruby Dynasty
#18 - 2014-03-13 22:59:53 UTC
I usually keep my money in PLEX form. My reasoning is simple. The USD to ISK prices will fluctuate since the worth of ISK is determined by many in-game factors. The USD to PLEX ratio is fairly static since even during CCP PLEX sales the tend to stay around $20 per PLEX. Of course PLEX to ISK does fluctuate, so there are better times to invest in PLEX, but in the long run your PLEX will most likely be worth about $20 while other investments based on ISK might not.

Investing in PLEX is like investing in gold (instead of a specific countries currency) in real life.
Sabriz Adoudel
Move along there is nothing here
#19 - 2014-03-13 23:48:03 UTC
Dennis Vlahos wrote:
thank you all for your suggestions
i converted about 80% of the liquid into plex

i'll be back !
fly safe o7


I think you made a wise decision.

Keeping a small amount of liquid ISK was also sensible, as it means that when you return you can use that to cover day-to-day costs while you wait for the PLEX to sell at a good price, rather than having to sell them immediately at whatever you can get.

I support the New Order and CODE. alliance. www.minerbumping.com

Rakshasa Taisab
Sane Industries Inc.
#20 - 2014-03-14 08:57:20 UTC
Sabriz Adoudel wrote:
Dennis Vlahos wrote:
thank you all for your suggestions
i converted about 80% of the liquid into plex

i'll be back !
fly safe o7


I think you made a wise decision.

Keeping a small amount of liquid ISK was also sensible, as it means that when you return you can use that to cover day-to-day costs while you wait for the PLEX to sell at a good price, rather than having to sell them immediately at whatever you can get.

Looks more like a stupid decision...

Nyan