DnD Economy

Using magic items as trade goods seems as reasonable as using art objects. Trade goods are traded back and forth at value just like money. Most of the games I play in have a buy value for magic items set at half market price like other armor and weapons. One thing that would mean, is that all high level deals would probably require a wizard or other spell caster. Money, art and other trade goods can have their value determined by somebody with a good appraise skill. I don't know if you'd really want to allow appraise to do the same thing as it would be a mundane equivilant of an Identify spell at that point. So, large purchases using magic items as trade goods would most likely require a wizard to verify that the items are what each party says they are, possibly making identifies for all objects in the deal which would mean an added cost of such transactions.

Another solution would be to use art objects and jewelry which could have a value much higher than that of the base components. It could then be verified by a decent appraise skill check without much overhead cost and would still solve the problem at hand as they are already trade goods and are bought and sold at so near the same price as to make no difference(PHB 112).

Of course using magic items as trade goods opens a whole new genre of magic items. A bunch of magic swords and armor, while a lot of wealth, and a good thing to have when needed, preform not function when not distributed to men to use in combat. Household magic items however, things that might keep a room at a comfortable temperature, items that clean, magical versions of a refrigerator (perhaps not keeping things cold, but rather just from spoiling) would have a similar high value as magic items and would provide use to household. Even better would be an enchantment that would make an item unstealable. The item, similar to some cursed items, simply teleports back to the owner if stolen. Ownership could be transfered by verbal command by the owner stating the other person is the new owner. That would make such items even more valuable and useful. Then there is the possiblity of economic denial such as what Drow do to their weapons and armor. If removed from their homeland or expopsed to sunlight, they are destroyed, thus preventing the enemy from profiting from such items. Similar enchantments could be put on other items to deny trade with undesired groups, especially if such trade good items are made by a government or under governmental rules to include such enchantments. Thus limiting the amount of trade somebody could have with enemy nations or intelligent monsters as a sort of trade embargo.
 

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