On Sun, 26 Aug 2001, Viking Coder wrote:
> > The point I was emphasizing was that it appears that someone is bailing in
> > bars, into the GoldMoney system, other than FideliTrade, which seems to have
> > given up.
>
> FideliTrade is no longer listed as a cambio on GoldMoney's site. Doesn't
> it seem a little odd that GoldMoney's only original exchange provider has
> stopped providing that service after only 6 months?
>
>
> On the matter of exchange fees...
>
> The main reasons for an avg. 5% fee have very little, if anything, to do
> with the inabillity to bail in bars? (right?)
>
I'm afraid this is wrong, Viking!
I am the only e-gold wholesaler other than Omnipay, so I would think I
know this scene. In fact what you are talking about is our stock in trade
every single day.
Every single day, numerous times, an MM write s me saying "gee, can I get
any gold under 2-3% from you today JP? If only I could pay less than 2-3%
wholesale I could charge less at retail"
This is an obviosity: the price civillians pay at retail is either
(a) what omnipay charges wholesale (2 to 4%, depending on which MM it
is) plus what the retailer charges
or
(b) what I charge wholesale (!) plus the retailer's percentage.
If the wholesale part, me or omnipay, decreases by say "2.4%", the retail
price will go down by that percentage.
Fact!
> Large amounts (10's of kg) of e-gold can be obtained without ever
> bothering with bailing in metal bars.
Not sure how that is relevant..
> Merchants ..
You must be talking about Bananagold, which I own, or TheGoldCasino -- and
Coconutgold has the exclusive contract to buy gold from TGC! (Am I an
insider or what? :) )
> receive e-gold without
> paying more than a 1% fee (while paying much larger fees to receive
> national currency with credit cards). They then, usually, must exchange
> said e-gold for their national currency.
Yup, thats what bananagold and indirecly TGC do, both through Coconut!
> It is therefore possible for
> exchange providers to inexpensively obtain large amounts of e-gold without
> bailing in bars.
>
This is absolutely correct, but competelty wrong in practice, because it
only amounts to a trivial amount of gold.
It's not complicated -- all you're saying is "sometimes MMs get gold
directly from people selling gold to the MMs"
It amounts to nothing, though. ie, MMs are always buying
gold at wholesale from Omnipay (and a trivial amount from me)
Anyway, GoldMOney is now available, right now, do it, at virtually-nothing
over SPOT (send me an email) whereas e-gold is only available at 2-3% over
spot.
If you can be bothered organizing it with GoldMoney and a bullion dealer
etc, GoldMOney is availabel right now at EXACTLTY spot, although, GM would
probably suggest you just deal with me and pay a few hundred buck fee, and
avoid the hassle.
Yes, as you say Viking, occasionally MMs get some gold directly fropm
people selling it, but it amounts to no volume, sadly.
JP!
>
> Viking Coder
> ________________
> Worth Two Cents?
> http://www.two-cents-worth.com/?VikingCoder
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