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Why are keys dropping so much?


Malistir
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http://forums.backpack.tf/index.php?/topic/57166-are-keys-finally-gonna-stabilize/?p=562638 and so on, is helpful. Here's my answer:

 

With the Mann Co. Store sales always happening during the end of December until mid-January every year, people collect funds before-hand. This may be through saving up money, to be invested in the goods that are on sale. Generally speaking, during this season, it does shift demand away from keys as people attempt to find better ways of turning refined into Steam Wallet Funds e.g Limited Cosmetics. The very sharp drop in keys has occurred due to the lack of demand and the surplus of keys in the market, as people have seen with people like Spirit Bots and STN attempting to sell their huge stockpile of keys as quickly as possible right now, causing undercutting.

 

However, once the sales end, keys will just do a u-turn back up as with people hoping to turn their short-term investment into pure.

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Keys were to far above market equilibrium so they are taking a slow dive back down to the market equilibrium as is inevitable with any economy with an elastic item as the market.

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This happens around every Christmas, this is due to a ton of people buying keys with their Christmas money and thus, flooding the market with a surplus of keys. The only reason why the key's drop in price came so late is because the keys people bought on Christmas is untradable until recently

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I had not seen this thread. Perhaps you could solve this doubt? (Here or there, I hope it does not go against the rules of the forum). http://forums.backpack.tf/index.php?/topic/57331-will-the-price-of-the-keys-continue-to-fall/

 

Would it be better to buy keys now?

 

 

Thank you for your time and effort.

 

If you have disposable ref, I would suggest to buy now. Lowest point I've seen was 24 ref and they already bounced back.

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