> From: "Robert S.Z." <[EMAIL PROTECTED]> > Date: Wed, 25 Jun 2003 11:42:17 -0400 > To: "e-gold Discussion" <[EMAIL PROTECTED]> > Subject: [e-gold-list] Re: Speaking of cutting loosses
>> > Hi Goerge, > > Omni claims to have never had wholesale rates all of a sudden. It's > starting to look as if nobody trades at Spot anymore, even for larger > chunks. But thanks for the suggestion. When Omnipay instituted their new "straddled spread" pricing policy (meaning they charged on both inexchange and outexchange instead of selling at spot + x% and buying back at spot) I wrote a letter to Doug Jackson and others at e-gold/Omnipay recommending that they not follow this policy, and that it was more important to e-gold's circulation to support a policy to buy at spot. It used to be that $1,000 worth of e-gold would get you $1,000 US from anyone, but now it gets $990 or $980 depending on if you use a regular provider or Omnipay. That has some users, like your customer, wondering. Back in November I also predicted that eventually exchangers would migrate to -1% outexchange fees, and they would also have to lower their inexchange fees, although some companies pledged to continue accepting e-gold at spot and charging 4%+ on inexchanges because their customers valued their service that much. Instead, most exchangers have lowered their inexchange rates and now only buy back e-gold at -1%. The new policy also put the squeeze on exchangers because when Omnipay lowered their rate from 5% to 2% they not only forced lower rates, but they kept the wholesale e-gold rate at 1%. This means that to match Omnipay's prices your margin went from 4% (5%-1%) to 1% (2%-1%). I think due to this in part several exchangers have closed their business or sold their business, and I hear a few other exchangers are wanting to sell out. I haven't ordered straight from Omnipay for a little while, but if they no longer offer a wholesale rate, that puts additional pressure on providers. I said last year the new pricing structure would force many providers out of the market, and maybe that was Omnipay and e-gold's goal, I don't know. I never got any response to the issues I raised in my letters. I think e-gold needs a vibrant exchange provider network for worldwide coverage and for providing a wide variety of ancillary services. I will also say that Omnipay's pricing methodology isn't exactly transparent on how many percent you are paying on outexchanges unless you work out their rates compared to spot with a calculator. - John --- http://cambist.net --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] 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.
