> Craig Spencer wrote:
> It does you no monetary good that the prices differ (no matter how fast
> you can buy and sell) unless there is a way you can convert gg to e-gold
> and back.
Anybody who does a conversion between one GBC and another will have to be
very careful and not simply do a 1 for 1 conversion. If they do, then they
will be on the losing end of any arbitrage that happens.
Currently:
e-gold, or SR, gram of gold: US$8.91 (as of 5/28/01 11:53:17 PM GMT)
GoldMoney gram of gold: US$8.93 (as of 5/25/01, er... who said they're
real time?)
OSGold gram of gold: No exchange infomation available, but does that
really matter? After all they are 150% backed, and this guy who said he
can give me 1000% back on my investment in one week will only deal in
OSGold. jeesh... :(
The current difference between e-gold & gg is 0.225%. This means that if
you transferred US$1000 worth of e-gold to gg, then the gg would have a
US$ value of $1002.25. However, you have transaction fees to deal with.
e-gold will charge a US$0.5 fee to the exchange provider and GoldMoney
will charge a US$1 fee to you. This leaves you with US$1000.75. This
exchange provider will probably charge their own transaction fee. One of
the MMs was charging a 0.06g flat fee. This currently equates to US$0.53.
This leaves you with US$1000.22.
So you have succeeded in increasing your net worth by US$0.22. If the
price disparity increase from $0.02 to $0.50, then this equates to $15.55
per ounce difference (i.e. e-gold for US$277/ounce and gg for
US$292.55/31.1035 gg). Your net worth would be increased by US$54 if you
did the same transaction as above.
You then sit on your larger amount of gold and wait for e-gold to have a
higher US$ worth than gg and then do the vice versa transaction, and
again, and again, and again...
This gold has to come from somewhere. So unless you happen to be related
to King Midas, you can't pull off a 'Allan Goldspan' act and create gold
out of nothing. The exchange provider(s) will be taking the hit. However,
this will only happen if they provide a 1 to 1 exchange.
Viking Coder
________________
Worth Two Cents?
http://www.2cw.org/VikingCoder
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