> > I'd note that OmniPay is like any exchange provider, ...
>
> OmniPay is NOT like any other exchange provider. Not only is there
> a past history of unity with e-gold and an incestuous relation amoung
> the principals of the "two" companies but OmniPay has the exclusive
> privilege of bailment.
>
> CCS
e-gold ltd. is trying to maintain the purity of their metal backing. The
reason Omnipay can bail in bars when nobody else can is that they have an
account with Bank of Nova Scotia. If an entity, corporate or human,
seriously wants to bail in bars they should create an account with Bank of
Nova Scotia. Otherwise, every bar that is bailed in would have to melted,
tested, and reformed to ensure neccesary purity. This is a very expensive
and time consuming process.
The reason purity is such a high concern is that tungsten has the same
density as gold. Once a tungsten bar has been covered with a 15 micron
layer of gold, it is undetectable by any other means than the one
described above. Gold costs ~$8500/kg and tungsten costs ~$100/kg.
When Omnipay does a bailment, they don't purchase gold bars from the local
Gold Bars 'R Us and ship them up to Canada. They deposit money into their
Bank of Nova Scotia account and tell the Bank of Nova Scotia to transfer
this money into gold bars and to transfer these gold bars into the e-gold
repository vault. e-gold ltd. does NOT have an account with Bank of Nova
Scotia, they have an agreement to utilize their ultra-secure vault space
for storage of their metal. It is somewhat similar to having a safety
deposit box at the local bank without actually having an account with
them.
Viking Coder
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