Producing gold means Negative profits??

[Guest]

I was trying to calculate what profit i made from producing gold and I ended up with a negative value please check my calculations.

Power current market price .08
Water current market price .08
Gold price I get in contracts 75
Gold production fee 9
850 kWh power needed to make 1 gold
90 litres water needed to make 1 gold

Cost of power used to make 1 gold
850 * .08 = 68

Cost of water used to make 1 gold
90 * .08 = 7.2

Cost of 1 gold is equal to cost of used items plus production fee.
68 + 7.2 + 9 = 84.2

Profit is equal to income - cost
75 - 84.2 = -9.2

Thus it is better for me to sell the power and water i make on market than to make gold.

[Guest]

My spreadsheet agrees with your math. It is not the only product like this.

[Guest]

could you please inform me which other products you are referring to

[Guest]

the high power cost is just temporary, normally power goes for 0.06 and that makes a big difference! (17$ lower cost per gold to be exactly)
Now delete this post because my production depends on 20 gold suppliers who send 75K gold per day lol

[Guest]

i doubt you will see power going for 0.06 again, alot of ppl jumped on the steel production rigth after the wardrobes boom, that pushed power prices up, then this contest poped in and everything in it need power to make TVs.
I do think the TVs had less impact on the market than the wardrobe and steel.
besides if you take a peek at the german server you will see power is alot more expensive there.

[Guest]

absolutely agreed.

[Guest]

could you please inform me which other products you are referring to

Well ... Cattle. I may have mentioned that once or twice. Pretty much Pigs and Lambs in the same way.

Jeans and Shoes are often sold below the cost of the textiles & leather that go in.

You called Gold, I've seen it with the whole Jewlery industry from time to time.

And I think Coffee, Biscuits, and a few of the Car products. They may not be that way now, but they have on occasion.

[Guest]

you can add the whole beverage industry to the list. and good part of the furnitures.

[Guest]

Depends if you make your own power at 0.01. It makes a big difference on the production cost.

[Guest]

That thumping sound you hear is my head vs the nearest wall.

[Guest]

That thumping sound you hear is my head vs the nearest wall.

dont give up, one day they will understand it.

[Guest]

yes, if you make your own power the cost will go down.
When you get higher level the cost also goes down,
Depending on where the mine is, the cost will change,
But yes, it cost more to make than you can sell it for but I can only assume that you make your money from turning it into jewelry to sell in stores.

[Guest]

When you get higher level the cost also goes down,

say what?

[Guest]

I was trying to calculate what profit i made from producing gold and I ended up with a negative value please check my calculations.

Power current market price .08
Water current market price .08
Gold price I get in contracts 75
Gold production fee 9
850 kWh power needed to make 1 gold
90 litres water needed to make 1 gold

Cost of power used to make 1 gold
850 * .08 = 68

Cost of water used to make 1 gold
90 * .08 = 7.2

Cost of 1 gold is equal to cost of used items plus production fee.
68 + 7.2 + 9 = 84.2

Profit is equal to income - cost
75 - 84.2 = -9.2

Thus it is better for me to sell the power and water i make on market than to make gold.

My costs:
Power: 0.01
Water: 0.021
Gold: 9.72

Power: 8.5 + Water: 1.89 + Gold prod. cost: 9.72 = 20.11

I use it to produce my jewelry cheaper


PS: You forgot to deduct the 10% fee in you market prices.

[Guest]

You would profit more by selling water and power on the marketplace and you wouldn't loose time and money for making gold, or even building a mine.

However it feals great thet there are people who want to support others even if they don't profit on it. Otherwise noone would make jewlery.