From: "SnowDog" <[EMAIL PROTECTED]>
> If we were to do it the GoldMoney way, then there would be NO > liabilities listed for E-Gold LTD, and the balance sheet would be only ONE > sheet, indicating the total amount of gold in the system. There would be NO > liability column. Interesting that you bring up GoldMoney. They accumulate their storage fees into AN ACCOUNT (40-00-12-G). One might guess that transaction fees go into an account, too. So any "equity" accumulation would be in specific accounts, not as a free-floating stash of gold outside of the account system. That sounds nice and clean to me. > When they say "These are our assets, in gold", and "These are our > liabilities in gold", they are SAYING implicitly, that they have no other > assets and liabilities with regard to their operational accounts. It does sort of look that way, yes. But maybe they're just listing the liabilities to account holders, and leaving the stuff that's none of our business out of the picture. As that Jim Davidson fellow pointed out, it would be understandable to lump extra gold into the Trust because it would be unwieldy and impractical to lump it anywhere else. You can't "open up a new Trust" just to store 1.5 more 400 oz. bars. The Trust can simply keep a general ledger entry for the extra gold. As JP said, this is most probably a liability to another party, not equity of the Trust itself. Remember, section 3.1.2 of the User Agreement says: "Under no circumstances will Issuer abrogate its obligation to back all e-metal with (at least) 100% reserve of physical metal." Note the key phrase "at least." That means there is a way to have MORE metal in the Trust than grams in circulation. The "Issuer" is e-gold, Ltd. So maybe e-gold, Ltd. simply has 19,106.19 more grams of metal than grams in circulation, giving them a backing ratio of roughly 101% (1,952,954.93 / 1,933,848.74). If that's the case, then the extra 19,106.19 grams of gold would be a liability of the Trust, to E-gold, Ltd. -- Patrick --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.