WoW Economy Paradox

[Teryon]

Deflation in the game, inflation with goldsellers?

The $$$ price for gold has declined 20-30% during the last 6 months. But in the game 1000 g actually has more buying power than 6 months ago.

On my server:
Saronite Ore cost 20 g, now 15 g
Scarlet rubies cost 80 g, now 50 g
Eternal Shadow cost 6 g, now 3 g
Northrend fish for feast 60 g stack, now 30 g
Infinite Dust 100 g stack, now 70 g
Abyss crystal 75 g, now 25 g
Glyphs a lot cheaper than they were
Frozen orbs, runed orbs cheaper

[namelessgnome]

I dunno If i would call that a paradox.

The lower price of gold is because people have a sufficient amount of gold, therefore fewer people need to buy gold which leads to a lower in gold <-> $ exchange rate.

Also the value of game virtual property drops when peoples entertainment budgets shrink due to the recession

TL;DR: People don't need to buy gold because they can buy everything they need with the gold that they have