[Prophesy]

No,

that is the money you sill recieve if you click on the "sell" tab on the inventory screen.

It's the price the NPCs give to vaporize it into nothingness,
you don't have to sell old items when you get new ones,
you can keep them in storage,
sell on the item market, or via the trade forum (recommended)
or take the measely trade in value (not recommended)