Using your jeweler to make money on the D3 AH by combining gems….or not?
The commodity market is up again! You can now once again buy and sell gems, but should you actually bother doing this or is it just a waste of time and gold?
You used to be able to make money in Diablo 3 by combining gems, but that was way back in the end of May. Two weeks later and a lot has changed:
- More and more people have hit Inferno and have been hit by the truck that is act 2 Inferno.
- The fact that act 2 is so much more difficult than act 1, means people need to farm act 1. This also means they have been getting flawless square gems like there was no tomorrow. Gems more or less drop like candy and there is no variety in their stats.
- D3 commodity AH has been down and you have not been able to sell your gems. The cost to combine them is huge and while I do think some people have combined their gems, I think more people have stockpiled them in anticipation of the commodity AH coming back up.
- Patch 1.0.3 changes the jeweler and the loot system. Lower level gems will be an option, since you only need two gems to combine to a higher and the crafting cost is effectively gone.
The most important factor right now, is the fact that people have been hoarding gems and dumping them on the market. This means you can’t take the current price as the “normal price” and any gems you decide to sell, you need to sell ASAP, since I believe we could see a further drop in the price of flawless gems.
The current state of the Diablo 3 gem market
I love the gem market, because there is no variance in the stats of the items, so you know what you have and you can get to know the market quite well. Sadly, people don’t seem to be able to do basic math or they just don’t like to make money or gold on the AH. But maybe, we can use this to our advantage?
A quick tour of the EU AH, gives these price for flawless square gems:
- Flawless square amethyst: 1420 gold / 47% of highest price
- Flawless square emerald: 3000 gold / 100% of highest price
- Flawless square Ruby: 1200 gold / 40% of highest price
- Flawless square topaz: 1550 gold / 52% of highest price
As we can see, there is a lot of variance in the prices with emeralds being the most popular. For perfect square gems the prices look like this:
- Perfect square amethyst: 42,000 gold / 89%
- Perfect square emerald: 47,000 gold / 100%
- Perfect square ruby: 41,000 gold / 87%
- Perfect square topaz: 42,000 gold / 89%
We now have a much tighter price spread, but this is mainly due to the fact, that the crafting costs are such a huge part of the price of the final gem:
- Perfect square gem (rank 9): 30,000 gold, 3 tomes of secrets
- Radiant square gem (rank 10): 50,000 gold, 6 tomes of secrets
- Star gem (rank 11): 80,000 gold, 9 tomes of secrets
- Flawless Star gem (rank 12): 100,000 gold, 12 tomes of secrets
- Perfect star gem (rank 13): 200,000 gold, 15 tomes of secrets
- Radiant star gem (rank 14): 400,000 gold, 20 tomes of secrets
About 31,000 gold of the perfect square gem is the crafting cost. Then you need to factor in the cost of the flawless square gems, and of course the commodity tax of 15% to Blizzard. This is where the chain snaps for people.
Buying 3 flawless square emeralds will cost you 9,000 gold. Combining them will cost you 31,000 gold. Total cost is 40,000 gold and then you sell it for 42,000 gold…..and Blizzard takes 15%, netting you 35,700 gold, effectively losing you money!
Buying 3 flawless square amethysts will cost you 4,260 gold plus the 31,000 to combine them. Total cost is 35,260 gold and you sell it for 42,000 gold. Blizzard takes 15% netting you 35,700 gold. A profit of a measly 440 gold! With the variance of the prices in the market, you are basically not making money on the gems, but only taking on risk! Stupid and pointless.
And it gets worse with the radiant square gems. If you buy flawless square gems and combine them up to radiant square gems, you losing between 10,000-30,000 gold on each gem.
But why are people losing money like this on the D3 AH?
My theory is that people are either totally oblivious of the 15% commodity fee or they are crafting their hoarded gems and then selling them. The being oblivious makes sense, but not on a continued scale. Sooner or later people are going to realize they are losing money….and either stop doing what is losing them money or raise their prices.
If they are crafting their hoarded gems, sooner or later the supply is going to run dry or they start to realize, that they are actually much better off selling their gems as flawless square gems. They make about three times more, if they would just sell the flawless square gems.
Long story short, I think the market will start to notice that it is losing money by doing both of the above. This also means a correction is coming and the prices of the higher level gems will rise. However, we also need to get rid of the huge amount of flawless square gems people have hoarded before we start to see a stable market. The prices will fluctuate wildly over the next few weeks so I advise you to stay on the sidelines and focus on reduced level weapons and attack speed increase weapons.
Find the bargains amongst these and make your money on the D3 AH by flipping instead.