Dear JP,

>Right -- I'm not sure if that makes sense though, Craig man.

Why not?

>When you pay a storage or spend fee, it's simply an :"e-gold spend".

It is an e-gold spend.  To whom is it spent?  E-gold, Ltd.

So, that storage fee goes from the accounts of each user to
the account of E-gold, Ltd.  The spend fees are more complex,
owing to the "progeny" issue.  But, spend fees in part also
go to E-gold, Ltd.

>liabilities have to balance with assets somewhere ...

No.  That isn't what a balance sheet shows us.  Liabilities
plus owners equity equals assets.  

Revenues have to go somewhere.  You are looking at a portion 
of the balance sheet of e-gold.  Changes to that balance sheet 
will reflect various events.  One of those events is revenues 
coming in.  That's what Craig has observed: the monthly change
in status of ownership of the gold, from all kinds of user
accounts to the e-gold, Ltd., account.

You aren't being offered a complete financial picture of
e-gold.  That would include a balance sheet, a cash flow
statement, and an income statement.  With those three pieces,
you could gain a fairly clear understanding of what the 
company is doing, although obfuscation in the form of off
books activities "special purpose entities" and the like can
sow enormous confusion.

All Examiner is providing is a detailed look at the gold
holdings of e-Gold.  It does not break out the amount held
by e-Gold as "liabilities" for the circulating e-currency,
as separate from the "equity" held by e-Gold itself.

Now, examiner.html shows details.  I am very impressed with
the new examiner.  It is just what I would have wanted, and
much akin to what I asked for back in February/March when
we were all wondering where one could get 400.0000 ounce
bars of gold.

As I said then, the weights of each bar are in fact known.
We can now look at a page like:
 http://e-gold.com/examinerblowup.asp?id=100&metal=1
and see not only the specific weights, but also the refiners,
serial number, and fine weights (gross weight of the bar 
times its purity) of gold in ounces and grams.  Excellent.

Well done, e-gold, well done!

This sort of detailed disclosure is excellent, I think. It
makes the price manipulation of gold that much harder. If
all the owners of bullion were willing to disclose this sort
of detail, if, for example, Congressman Ron Paul could get
the US Congress to require such disclosure by the USA
Treasury, and the other central banks were compelled by their
respective governments to make such disclosures, it would be
harder, I think, to securitize and create derivatives of
and establish short positions greater than the volume of
actual gold in hand.  

In any event, I am well pleased with this data.  I feel
much more comfortable knowing how much gold is at each
location, with specifics.

Regards,

Jim Davidson
President
Gold Barter Holdings
 http://goldbarterholdings.com/


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