"The second item of concern for me was that because some people equate TGC shares with e-gold there is an inherent potential of perceived inflationary tendencies."
But they do so mistakenly; even in the context of private exchanges I am not sure how such inflation is possible (see below.) "Imagine there were 20 ventures listed with a combined market cap of USD 2,000,000.00 imagine further that people are keen on getting their hands on these shares. First there is a run on e-gold, 2,000,000.00 dollars' worth. Once the shares are bought and the sellers cash out there is a 2,000,000 dollar worth of e-gold surplus. Great times for exchangers. But, during the run and the subsequent oversupply e-gold Ltd would need to ensure enough flow of first e-gold and later cash." I see little problem here and positively massive profit potential for both OmniPay and whatever lucky market maker gets this hypothetical order ... because e-gold is a fully-backed, fully redeemable digital gold currency there can be no inflation in the sense of mysterious increases in e-gold circulation not directly correlated to an increase in the pysical gold stored in e-gold's assorted contracted storage facilities (audit pending.) I could offer a sale of one TGC share for 1,579,000 grams of e-gold, but because this represents a greater sum of gold than all e-gold currently in existence (1,578,274.17 according to http://e-gold.com/examiner.html [audit pending]) I would not likely find a buyer (not to mention the TGC shareholders who would no doubt gladly accept a scant 1,250,000 grams or other such relatively competitive prices for their own shares.) "Of course, there is OmniPay to ensure that flow. But, how long would they need to add $2,000,000 worth of gold to the storage and later to sell the same amount?" It is certainly possible that OmniPay would not simply sit on that $ 2,000,000.00 in case someone needed it; I consider it highly unlikely that they maintain a liquid cash reserve in excess of $ 20 million on the off-chance that all of the four e-metal currencies maintained by G&SR were suddenly out-exchanged en masse. It is not neccessary for them to do so; after all, e-gold is fully backed by and fully redeemable for physical metal, so it is no particularly difficult task for them to simply liquidate the underlying metal in order to gain adequate cash to facilitate the out-exchange. Anyone attempting a $ 2,000,000.00 e-gold out-exchange might find himself subject to the law of supply and demand (i.e., demand for the service of exchanging e-gold for cash); however the transaction would be easily-enough handled by the parties involved, if perhaps at a somewhat slower pace and more expensive rate as most of us have come to take for granted with all of the established market makers. Frank --- 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.
