Let's talk about gold and magic items. New DNs love being generous. Who doesn't want to see their players' faces light up when they find a flaming sword or a chest of 10,000 gold pieces?
Here's the problem: You just broke your economy and your tension curve.
Why Gold Inflation Hurts
Money matters when it's scarce. When players have 50,000 gold and nothing meaningful to spend it on, you've removed an entire pillar of decision-making. Should we buy the healing potion or save for better armor? Can we afford to bribe the guard? These questions disappear when everyone's swimming in coins.
Your party is third level. They defeat some bandits and you give them 2,000 gold. Now they walk into town, buy the best armor available, stock up on healing potions, bribe every guard they meet, and still have money left over. When they reach the dragon's hoard three levels later, the 5,000 gold feels like pocket change. You've taught them that money is meaningless.
Compare that to this. Same bandit fight, but they find 150 gold total, plus a silver locket worth another 50 if they can find the right buyer. Now in town, they have real decisions. The fighter can afford the chain mail upgrade OR a week at the inn OR a healing potion. Not all three. Suddenly they're planning, prioritizing, even arguing about group resources.
How to Fix Gold Inflation
Make gold harder to transport. That bandit hoard of 5,000 copper pieces? That's 50 pounds of copper. Are they really carrying that out? Create meaningful gold sinks like titles that grant social access, bribes that open new quest lines, or rare services like magical identification. Remember that most NPCs have never seen 100 gold in one place, so let them react with awe, suspicion, or greed when the party flashes wealth.
Here's the real trick. If your players are broke, buying information from a street urchin costs them their lunch rations and maybe a promise to help the kid's sick sister. If they're rich, they toss a gold coin and move on. Which interaction was more interesting? Scarcity creates story.