It seems to me that e-gold shouldn't need to set their price at all. That is, if a digital asset currency allows the market makers to do all the exchanging between that currency and fiat currencies, then the price of e-gold, GoldMoney or whatever, is determined by the average of all the daily trades by the exchange agents. I wrote an article in The Gold Economy last winter predicting that since e-gold and others make gold bullion more useful than a 400 oz brick in your hand, that we should see the price of e-gold and others rise several percentage points above the price of gold bullion on the commodities markets. This seems to have happened, because while market makers will sell you e-gold for a 3-10% commission ABOVE the commodity price of gold, most of them will buy your e-gold at spot price or in some cases higher. If the commission was merely a price for their service, you would expect the 7-10% charge BOTH ways. One obvious reason for this is that the market maker has virtually zero risk on converting e-gold to cash, but has high risk converting cash to e-gold. The fact that many market makers are now offering to pay YOU above spot to buy your e-gold suggests that my prediction is coming true. The price of e-gold is now higher than the price of gold, and it isn't just exchange fees. It holds its value at that price. Any comments? Ken Griffith --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
