If you had any actual experience with the AH, you would know that this is impossible to do on any significant scale. Actually just common sense will tell you this.
(I was thinking about tailoring so I did the following math with Duskweave, but ore is exactly the same.)
For example: Right now in the AH there are 23,666 rank 1 Duskweave for sale. The lowest price is 83.63.
Bear in mind that the AH takes a 5% cut. So you would need to be able to resell at a price of 83.63/0.95 = 87.37 just to break even.
What happens if you buy all the cloth up to 100g? You buy 13,796 duskweave and spend 1.2M gold. Now you have spent an average of 87.24. In order to break even there you need to sell at a minimum of 91.83.
What happens if you do that? You spend 1.2M. You list your cloth for 100g. The very, very best you can do is to sell all of that for 1.37M, of which you keep 1.3M.
You have just made 100,000 gold, but only if no one posts any cheaper cloth.
But EVERYONE is going to post cheaper cloth. What is actually going to happen is that the price is going to go right back where it was, and you have just spent 1.2M gold on cloth that you are going to get paid 90 at most for, minus the AH cut, so you get 1.18M. You have lost 20,000g.
I’ve done “price resets” like this back when I was on a medium size server where the AH was just for that server. The commodities AH has been region wide since late in SL, though, so you are messing with the entirety of the US. But price resets don’t work with commodities even in smaller AHs. YOU CANNOT KEEP PEOPLE FROM FARMING AND POSTING AT “SELL QUICK” PRICES.
The very best you can hope for is to roughly break even. If you do it wrong, you will lose shocking amounts of gold very quickly.
You have to ask yourself, why is the market setting the price this way? The answer is because the demand is for “any” ore, not “the very best” ore. Also, tier 2 ore is not equal to 5x tier 1 ore. It’s just slightly better ore. But what is it better for?
People are still leveling professions and are not crafting high end gear in any great quantity. They will never craft high end gear in quantities that dominate demand for ore. Nor will jewelcrafting demand high tier ore in a way that makes it economical to refine ore.
I would expect the price of higher tier goods to become higher relative to lower tier than it currently is, but I don’t think it’ll change much, frankly. Ore may or may not become cheaper. We’ll see. People have a whole lot of profession leveling to do.
Part of the “problem” here is concentration, which allows lower tier goods to substitute for higher tier goods. If concentration were removed from the game, the spread in prices of tiers would increase significantly.