Here is a very interesting article titled "How a Gold Farm Works" and it's gonna be very long. Here is a most informative post in the thread:
I guess I should mention, as I failed to in my last post, that I have been in the process of dismantling my "business" since Christmas. You may wonder why I do not just fold it up completely and immediately, but that lies in needing to make sure that those I am responsible for, are taken care of. I expect to be completely done within the month.
This is going to be long, but I'd like to explain what my business essentially was, and my views on things in general and why what is currently going on is quite serious for EQ. Not just for the plat sellers like I was, or just those who rely on bazaar gears and trading to equip their character, but also those at the raiding level. While it certainly impacts raiders the least, it does eventually.
I started selling about 7 years ago. I started on my home server, amongst a few other sellers. At the time EQ was EQ, no expansions, fairly new, and you could sell 1,000 platinum for $500. I got into selling because of a GM at the time who I spoke to on occasion who was selling platinum and other items from places like mistmoore, guk, and solusek b. This was at a time a GM was an unpaid volunteer player, and the kinks hadn't been worked out as far as the EULA which forbid the buying and selling of intellectual property.
Link from: http://www.trade4game.com/html/news/23.htm
Another Link: http://www.trade4game.com/EQ2.htm