In many role playing games, one of the most critical decisions the GM has to make is how to give out treasure. From diamond rings with magical powers of protection and augmentation to enchanted blades that burst into flame to simple loose diamonds, precious artwork, and gold jewelry, the GM has far more options than mere coins with which to reward players in a fantasy RPG.

This selection can be important. As characters grow in experience and power, the assumption typically is that they also grow in wealth. Characters who were picking up silver pieces and garnet bands at the low levels upgrade to platinum coins and diamond jewelry as they advance. Better still, many of the items they acquire provide magical powers that support the characters in both combat and non-combat encounters; that lovely diamond pendant that the mage wrested from the neck of a defeated vampire may deflect enemy spells, while the white gold engagement ring that the prince gave the party's fighter might evoke an enchantment of stony skin three times daily.

As the characters advance, it is expected that the rewards - just like the monsters - will get bigger and more impressive. If the treasure-hoarding dragon has less to loot than the pillaging bandit-king from five levels ago, the players are not likely to be as impressed. They don't want another couple thousand gold pieces; they want powerful magic weapons from other heroes who tried and failed to defeat the monster (despite, apparently, having superior equipment, but RPGs can be funny that way). They don't want mere trinkets, but priceless elven jewelry studded with emerald-cut diamonds and maybe a few loose diamonds scattered around as well. And what do they do with all this treasure? If the game assumes a magic item economy, they trade it for even more powerful enchanted gear, presumably items designed to synergize with the natural strengths of their characters.

So suddenly, your barbarian warrior has a sword that can cleave through iron and armor that provides resistance to all forms of eldritch energy. Your wizard, meanwhile, is equipped with a staff that can repel evil and augment the power of three spells per day. The priest has a new pendant that allows it to fully heal an ally daily, and restore life to a fallen comrade each week. The rogue can become invisible, fly, and create illusions. All this happening just as they level up and gain new personal powers.

And that is why distribution of treasure can be so critical in a role playing game. If the characters don't get enough, they wind up woefully under-equipped for their level, unable to compete statistically with monsters designed around the assumption of every piece of gold jewelry that the characters wear being enhanced to buff some stat or provide some magic power. If you give out too much treasure, then their magical enhancements boost their stats too much, and even the toughest level-appropriate monster can't hope to challenge them. Many GMs then fall into the trap of throwing in stronger monsters, which not only lets the characters level even faster, but also may very well carry more platinum pendants and diamond-studded swords and other treasures that are above the party's level. The worst is when the GM seeks to challenge the players by sending in NPC villains equipped with their own level-inappropriate gear; magic items that fall into the players' hands when the battle is won.

A diamond ring is a fine reward for a dangerous quest, but remember that chances are that that fine item isn't going to some NPC that the character has a relationship with. No, that ring is a down-payment on the fabulous spell-shredding, flaming, strength-boosting warhammer of radiant speed that the player has been drooling over from level one. Assign rewards with care, and don't fall into the trap of the "monty haul" campaign.