Hello Jim, I was wondering what kept you :o)
In fact I was not speaking out against shares - or didn't mean to - at least initialy. I was trying to set the stage for what my latter post was meant to achieve namely warn about *possible* inflationary tendencies of e-gold derivatives, for lack of a better word. In private conversations with several clients of ours I realized that they believed that TGC shares were good as gold, NOT because of good and sound business practices and NOT because of dividend payments in gold, BUT because they paid gold for them and because they are traded in gold. Essentially many people appeared to be mistaking DBourse for 1MDC and seemed to think that they could 'outexchange' their shares. I was as flabbergasted about the thought as you are likely to be when you read my posts and mistook them for lashing out against stock or comments about what people should do with their money. Even some of those who are seemingly aware that outexchanges are not possible appear to have some weird concept about the mere fact of trading a share in gold gives the share an inherent value beyond mere bid and ask. As Danny pointed out, we could decide to trade Microsoft shares in gold and it would be no different. In fact we could swap shares for eggs or preused chewing gum if we wanted and found someone to trade with on that premise. 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. The more shares are listed on private exchanges (which I am very much FOR, of course) the higher the volume of instruments of perceived value without enough 'currency' to support the perception. In a scenario plan one could envision that the demand for e-gold itself could be influenced through lively trading in shares on a market that only allows e-gold to be used as a means of exchange. 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. 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? Points to ponder. Of course, I still believe that companies, just like partnerships should have to allow for avenues to let shareholders leave the partnership without needing a voting majority and winding up the company. Which by the way is how companies still are obliged to redeem their own shares, by being wound up and paying out all shareholders their cut from the sale of the company's assets. I feel that as the e-gold denominated equity markets are just in their infancy, the operators of the exchanges could set a new standard (which would actually be only taking a hint from history) and (re-)introduce a system where shares can be sold back to the company, with say, three months notice, based not on the share price, but on the actual value of the company's assets. This is likely to do wonders for accounting practices and assets valuations. After all, who would inflate their asset value if they did risk shareholders showing up calling their bluff? On a different note, how could you possibly benefit from dividend payments from TGC a dozen times? I know that we got our share of the loot twice and I don't believe that they issued unschedule dividends or anything? Or am I missing something? Cheers, Robert. budget & privacy website hosting http://www.cyberica.net start a profitable online business http://www.cyberfrontier.biz budget domain registrations http://www.u2planet.com --- 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.
