----- Original Message -----
From: C. Cormier - Ormetal Inc. <[EMAIL PROTECTED]>
To: e-gold Discussion <[EMAIL PROTECTED]>
Sent: Thursday, May 31, 2001 12:14 AM
Subject: [e-gold-list] Re: crypto -bullion -- authentication via crypto
> On 29 May 2001, at 23:28, David Hillary wrote:
>
> > Goldmoney claims to be 'unique' in that holdings of goldgrams are title
to
> > the actual gold in the holding, rather than a currency backed by a
> > holding. This is simply not the case, as the owner of 1 gg simply cannot
> > take his holding out and effect his claimed ownership of it -- bullion
> > backing goldmoney is in bullion of much greater masses.
>
> When you own a US treasury bond with a face value eof $100,000,
> can you go to the bank and claim $10. You still own the $10.
Is this really true? don't you have to sell bonds on the market to turn them
into cash? or wait till they mature?
>
> The goldgram you own is a title to one gram of gold and, although it
> may not be redeem as a physical gram, it can be convert to any
> national currencies at the specific value of one gram of gold.
1 gg is, to its holder, the right to an interest in gold bullion held, but
on goldmoney and the repository, its a potential liability, and therefore
the reputation and governance and security practices are a part security
against this debt. This heaves the holder reliant on other parties to obtain
and dispose of his gold, a social/economic relationship exists with respect
to the holding of gold, which could compromise its security. Goldmoney
provides a substitute for the actual possession and ownership of gold
(however good that substitute might be its seill a substitute).
>
> Even if you had
> > enough goldgrams to remove bullion from allocated storage, your holding
is
> > not a specified/allocated piece of bullion, but an interest in allocated
> > storage of of all goldmoney holdings at the repository.
>
> True, but if your interest match at least the size of a physical bar,
> you can retreive that physical bar. In other owrds you own a piece
> of bullion, no matter which piece. The result is the same.
This is a substitute for ownership of a specific piece held in allocated
storage, however good that substitute might be.
>
> Further still, the
> > direct holding of a piece of bullion at a repository is not true
> > ownership, as you lack actual and rely on the security and reputation of
> > the repository.
>
> This is true... but who keep gold under its mattress nowadays...
> You are better off with unencumbered gold held in a reputable vault
> than holding in anywhere else.
regardless of the extent to which you or I might thing physical possession
of gold is irrational or needless, a demand exists for this type of asset.
To a certian extent, technology reducing the costs of such portfolio
allocations subjects goldmoney and the like to competition. Demand for such
holdings could arise from widespread disorder, expectation of government
seizure of gold held at repositories or other reasons.
>
> > The only true asset currency in respect to gold is the physical
possession
> > of bullion, which is physically passed from payer to payee to act as
means
> > of payment and medium of exchange, money.
>
> This was in the old days before computers.
>
> Claude
> Claude
new technology is not good just because it is new, it must provide more
efficient or less costly means of production/exchange. new technology can
also make 'old economy' industries more efficient.
David Hillary
> http://www.goldcurrencies.ca
> http://www.ormetal.com
> ==================================
> Claude Cormier Public Key
> http://www.ormetal.com/PGPkey.html
> ==================================
>
> ---
> You are currently subscribed to e-gold-list as:
[EMAIL PROTECTED]
> To unsubscribe send a blank email to
[EMAIL PROTECTED]
>
---
You are currently subscribed to e-gold-list as: archive@jab.org
To unsubscribe send a blank email to [EMAIL PROTECTED]
