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<blockquote data-quote="Fredrik Svanberg" data-source="post: 5356279" data-attributes="member: 12996"><p>This is what makes most sense to me to explain "D&D Economy" - it's a magic-standard economy instead of a gold or silver standard. Except it's possible to convert magic into precious metal or gems, and vice versa. </p><p></p><p>That's what alchemy is for: to take magical energy and turn it into something that can be easily carried around and traded, i.e. money. For some reason magic is easily converted into gold, platinum and gems, and these metals and minerals are also easily converted back into magic.</p><p></p><p>Peasants and other people who don't trade in magic use copper and silver coins. These simpler metals aren't easily converted into magic and nobody would bother converting magic into copper or silver coins - nobody needs that tiny fraction of magical power.</p><p></p><p>It really is two separate economies, one for the mundane and one for the magical. However, since some mundane things are still useful even for the magical people, some trade happens across the economies. Gold coins can be exchanged for silver, to pay for the mundane services of an inn or whatever a village may provide.</p><p></p><p>I imagine gold coins stamped with the seals of magical academies, possibly with faintly glowing magical runes or security marks visible only under certain light to prevent forgery. Silver and copper coins would be issued by the mundane seats of power, the local lord or a city, or a bank.</p><p></p><p>Of course none of this prevents the problem of adventurers causing rampant inflation in a small village when they dump their magical items and gold and gems all over the place, but at least there's an explanation for why gold and magic is tied so closely together. </p><p></p><p>Maybe there are magical merchants scouring the countryside for those magical items and gold coins, buying them from the villagers in exchange for things that they can actually use, or perhaps magical services. Ten healing potions that can save your life or the life of your kid in exchange for a magical wand that an adventurer gave you for your horse and a free stay at the inn seems like a good deal to me.</p></blockquote><p></p>
[QUOTE="Fredrik Svanberg, post: 5356279, member: 12996"] This is what makes most sense to me to explain "D&D Economy" - it's a magic-standard economy instead of a gold or silver standard. Except it's possible to convert magic into precious metal or gems, and vice versa. That's what alchemy is for: to take magical energy and turn it into something that can be easily carried around and traded, i.e. money. For some reason magic is easily converted into gold, platinum and gems, and these metals and minerals are also easily converted back into magic. Peasants and other people who don't trade in magic use copper and silver coins. These simpler metals aren't easily converted into magic and nobody would bother converting magic into copper or silver coins - nobody needs that tiny fraction of magical power. It really is two separate economies, one for the mundane and one for the magical. However, since some mundane things are still useful even for the magical people, some trade happens across the economies. Gold coins can be exchanged for silver, to pay for the mundane services of an inn or whatever a village may provide. I imagine gold coins stamped with the seals of magical academies, possibly with faintly glowing magical runes or security marks visible only under certain light to prevent forgery. Silver and copper coins would be issued by the mundane seats of power, the local lord or a city, or a bank. Of course none of this prevents the problem of adventurers causing rampant inflation in a small village when they dump their magical items and gold and gems all over the place, but at least there's an explanation for why gold and magic is tied so closely together. Maybe there are magical merchants scouring the countryside for those magical items and gold coins, buying them from the villagers in exchange for things that they can actually use, or perhaps magical services. Ten healing potions that can save your life or the life of your kid in exchange for a magical wand that an adventurer gave you for your horse and a free stay at the inn seems like a good deal to me. [/QUOTE]
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