>This is a very interesting question and one which many may not really
>undersand. Standard Reserve does not re-issue E-Gold. Rather, Standard
>Reserve holds E-Gold as the asset backing Standard Gold. In doing this,
>Standard Reserve has a far more liquid asset than E-Gold making it
>possible to handle that asset in a different manner than E-Gold.
OK -- I agree, now I am confused. So,, SR uses e-gold as asset backing for
their currency yet that is not the same as re-issuing e-gold? If SR gold
has nothing behind it but e-gold, SR is simply e-gold with a different name,
as without e-gold there can be no SRG.
Also -- how can SRG be more liquid than e-gold, when e-gold is the backing
for SRG? If e-gold suddenly loses liquidity, then SRG loses liquidity
entirely.
>The unique-ness of Standard Gold is that its asset, in that it is "gold
>money", can be held as money in its E-Gold account, or a portion of it
>could be held as a security, and so on.
This takes the world of "gold
>money" a step further towards providing a wide range of financial services
>to customers, including providing loans, paying interest where a person
>elects to hold their value in an account where the asset can be loaned
>etc.
Uhh,, this sounds kind of like the e-metal version of the Banking fractional
reserve deposit system? Does this mean that SR endorses forward selling and
short selling of its asset (e-gold)?
>currency. On the other hand, E-Gold may be more attractive to some,
>because of its 100% gold backing. It depends upon your perspective in the
>future which "gold" you want to hold
Hmm,, I defer to your wisdom as this statement clearly confuses me (again)--
are you trying to tell us that e-gold is 100% backed by gold and SRG is not?
if so, please elaborate how that could be since the asset backing SRG is
e-gold and e-gold is supposed to be 100% backed by metal?
I am new to this e-metal business and researching the products before making
my plunge. This is one issue that bothers me -- the statment that e-gold is
100% backed by gold? This seems improbable to me because;
1) The only assurance we have that there is real metal backing is the
examiner page -- which is administered by e-gold personnel only (guess you
just have to believe!)
2)I do not see where e-gold has ever submitted to an audit of the reserves?
does this bother no-one else?
3)If e-gold were 100% backed by metal -- how could e-gold possibly have
enough liquidity cash to handle the daily outexchanging and conversion of
metal to fiat currency (without selling and buying metal daily -- and this
obviously is not done since the numbers on the examiner page would flucuate
in proportion). If the examiner were true to form -- e-gold would have to
have a section listing the amount of cash held in reserve also - and they do
not.
4) None of this would bother me so much if there was a contact page or
number for e-gold's escrow agent, however I do not see anything but the name
of a large Multinational Bank listed.
Best Wishes,
John Bosco
USA - Retired.
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