I buy stuff of the AH if I can NPC it for more, madness not too. A lot of the prices get this way due to the constant undercutting that is a signature of RMT trying to trap a market. There is a number of things that I farm, that NPC for higher than the AH price. So when I see those items on the AH I buy them up. I don't camp the AH, but i check on my way to NPC.
I don't really see it as being the same thing that the OP has noticed, I don't racketeer with other players. I just exploit AH traders that don't do their research.
Conversely I can buy a number of items from NPC cheaper than the AH, I also buy up these and sell them on the AH. I can pretty much make an extra 10-20k every time I visit Jeuno just from Buying low and selling higher.
Would you suggest that I don't buy them, or sell them, just because I can make a profit?
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Similar to say buying up all the Astral Rings, or Snipers Rings, and raising the prices.
Not really, these people are working in a group to be able to do that, and I do not agree with it as they are fixing prices.
The only reason the other method works, is because the prices DON'T go up, if they did then there wouldn't be a profit to make. This would make the crafter's in the wrong, they keep the price down that low, where it no longer became sensible to sell to AH, and some half-wit keeps putting the stuff on the AH. If they didn't then this item would NEVER be available from AH until the price rose above that of NPC+AH fee, and we know what people think of rising prices.
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That is completely opposite. Crafters are adding items to the game; Nyanhime is essentially deleting them. Why would you hate someone who's adding items?
I am sure that there are crafted skill up items that fetch a similar or better price from NPC than AH, are all crafters who do this instead bad people?
The OP has just given us a great example of how farming higher priced items for a huge profit can fail, as it is pretty much impossible to check the AH for price history, at least a price with any integrity.
My playtime is limited, I can project how much gil i can make per farming session by selling to NPC, the profit is instant, so storage is kept free.