> >It's not a prediction, it's a simple mathematical deduction. > > > hilarious... at any event, let's put it in the "predictions" file.
You can put it in your 'predictions' file, most people have it in the 'basic economics' file. What I am describing is just the same like what any company experiences when they do business with a foreign country. They are affected by changes in the foreign currency, just like TGC is affected by changes in the value of the dollar (or yen, yuan, ..) against gold. Basic economics , dear jpm. > It raises an interesting question -- how are IG systems affected by > moves in the gold price? Just in the same way like McDonalds is affected by a decline of the euro against the dollar. If the euro declines 10% against the dollar, the people in Europe are not going to eat any less hamburgers for it, but when McDonalds comes out with their quarterly numbers you will see that revenues and profits from Europe are 10% less in dollar terms. If the Euro has gone up 10%, their revenues and profits from Europe will be 10% more in dollar terms. Companies based in "e-gold country" are facing the same phenomenon. They are selling to people who earn their incomes mostly in dollars, yens,... Those who offer goods and services for e-gold, more than 90% state their prices in "xxx $ worth of e-gold" So, when the price of gold doubles, the amount of gold that flows in the system in exchange for goods and services simply halves. Example: a website hosted by cyberica. Let's say they ask $38 a year. At current gold rates I pay them 0.1 ounce If next year the pog has doubled, I will only pay 0.05 ounce for the same webhosting. So, their revenues in gold terms are cut in half if the same amount of business is done. TGC functions under the same economics. > Will there be an effect > along the lines of Danny's discussion that peple will say "hmm, I had > $10,000 of egold, but now I have $15,000 - I really only want $10,000 > so I better sell some"? If the price plummets will people just get > sick of it and sell bars? There is always a buyer for every seller. So, yes there are people who decide now to sell some gold because it has gone up. And there are other people who just start buying now because it is going up.. They are always in equal numbers. If the price plummets some people just sell, and others wait till the price plummets to buy at that lower price. Then too, the buyers and sellers are equal in number. Danny --- 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.
