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I heard from a land owner, from whom I rent land, that the price of Lindens are going up?


martianjew
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A land owner, that I currently rent land from, said something about the price of Lindens going up and that it could potentionally increase the price of my rent per week. I was kindly wondering if anyone had heard the same thing or what is going on?

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Martian,

Quick Answer: No Rumors are hot off the Internet at this time - :)

Your landlord may realize that they are charging too little to cover their Region or Mainland expenses. Unfortunately the excuse " Lindens are not worth what they once were! " is too flippant and easy to tell a tenant even when it's not true. 

Longer Answer [ Warning, Finance Terms littered throughout this discussion ]:

The conversion price of Lindens floats on the LindeX Exchange as Supply & Demand dictate. This is very much like currencies around the world on the Forex market with the exception that the Linden's value to USD is not regulated or anchored by a reserve of GOLD Bullion by backing countries or by speculators trying to edge a profit from minute changes in spot conversion rates.

Therefore the Market [Those making Lindens available for sale for at requested or desired rate - Limit Sellers] & [Those willing to buy at a requested or desired conversion rate - Limit Buyers] helps stabilize the value of the Linden in relation to the USD. This also controls the Spot price of the "Linden to USD" when you make a Market Buy or a Market Sell. The "Limit" Sellers & Buyers usually have outstanding the largest percentage of Lindens available for exchange.

Sometimes major world events will cause the US Dollar to float wildly in relationship to other World Currencies. If your landlord converts his Lindens to USDs and then to one of these currencies, his net proceeds may be aversely affected. This could cause them to want to shore up their profit by raising their rates charged for land in SL. Their expenses are paid in USDs for Regions of all types and for their Mainland Land Tiers so those Lindens to USDs are always usually on par. However if they are in a country that charges a VAT, they may get zapped by increasing taxes against their income at conversion time to USDs.

The relationship of Lindens to World Currency is a complicated subject. Here is LL's link to their discussion about it:

http://community.secondlife.com/t5/English-Knowledge-Base/Buying-and-selling-Linden-dollars/ta-p/700107

FYI - The Spot Conversion rate when selling Lindens has been floating around L$257 / US$1.00 for months

Occasionally a large influx of Lindens will be available at a better rate usually from a source wanting to dispose of them quickly. The important thing to watch for is the rate over time. There is no trend that I've noticed over the past 6 months.

Other members of the Answers Staff may have more precise information on their experiences in clearing their profits into their countries native currency. I hope they will comment into this Answer.

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