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1-)Put them on resource to get gold. I think this also levels up your merchant.
2-)use them on enemy merchants to sieze there resources and level up yourself.
Merchants can, however, be highly profitable if used properly. It's just a matter of putting them in the right places with the highest value resources. In no particular order these are:
1. Spices
2. Sugar
3. Cotton
4. Gold
5. Silver
6. Silks
7. Ivory
8. Slaves
Once you get to the New World, there's also:
1. Chocolate
2. Tobacco
3. Lots and lots of gold.
There's also some lesser value resources worth looking out for:
1. Marble
2. Textiles
3. Wine
4. Tin
5. Amber
As for the rest, it's probably worth avoiding these:
1. Coal
2. Iron
3. Wool
4. Dyes
5. Timber
6. Furs
7. Fish
8. Grain
9. Sulphur
Take this list as a general rule though as some trading spots on the map are more lucrative than others. Like how some regions share a particular resource, one may be more valuable for trade than the other. This is highlighted by the trade income of some of the most lucrative cities on the map, like Antioch which is surrounded by high value resources and is able to trade with distant cities via the sea trade. Another valuable city (and potentially the most valuable in Northern Europe) is Stockholm, it's situation is similar to Antioch; High value resources and trade via the sea.
The way the amount is calculated based on a tier system but also it is based on the distance of the first instance of the resource in relation to your capital. So, for example, as france you simply aren't going to get a big yield out of the wines. Whereas if you are playing as the moors for example, you might be bringing in 50 - 100 gold per merchant.
This way if you look at the map you can more or less know whether a resource is going to be valuable or not without necessarily needed to travel all the way to timbuktu.
Training merchants synergizes well with simply trying to get a merchants guild running (pretty much the standard guild you'll want on any cities not devoted to a particular role, and training governors for extra trade income)
Pasting in from another thread:
I know this conversation is long dead but holy molly I didn't know there is a exploit like that. Now i am gonna download the game just to try it. I've long known that the best way to use the merchants is to send them all to Timbuktu area early game and leave them on gold. Even without conquering the area they will bring in a lot of money as they level up.
Lmao that is an absolutely filthy exploit. Hilarious!