(Subject-line changed, to better-reflect reality.) At 09:07 AM -0500 10/02/2001, Julian Dibbell wrote: ... >Well, now, dangit, Jim, you may be right. You usually are. But help me out >here. The reason I'm assuming the price of gold in fact has PLENTY to do >with the circulation of e-gold goes something like this: > >Let's say I want to know whether e-gold and "gold itself" are effectively >the same commodity. To know this, it would help to know if the demand for ...
Thanks for the kind words, but we're already sorta off on the wrong foot here. e-gold is a currency, and physical gold can be either a currency or a commodity. Don't get me wrong, I *love* owning e-gold and my gold is _mostly_ e-gold, but I also like physical gold. I can't FEEL an ounce of e-gold like I can a one ounce Maple, and people tend to be feeling, illogical creatures, most of us. I also happen to think that demand for physical gold coins and nuggets is good for e-gold, so I always carry physical gold around with me. I don't speak for OmniPay, so I can't comment on decisions to sell bars, but I think it's widely known that OmniPay sells and buys bars regularly. Here's Jim Ray's "exchange provider for dummies" way of trying to understand the exchange providers' business. I start out with two piles, e-gold & (whatever fiat currency, but I think in dollars). As you sell the one pile, the other pile gets bigger, and when one pile gets too big you sell some of it so that you can meet all your obligations regarding transactions involving each pile, quickly. Sometimes this makes it necessary to (bail or) redeem physical bars, and THAT is reflected in Examiner, but the dollar price of gold isn't the reason bar-selling happens, it's the size of some pile of fiat currency like dollars going too far down! A variety of things might cause it, and even if I knew them (I don't) I wouldn't be able to say them. Of course, things get more complex quickly in the real world, but I hope you can see that spikes in e-gold demand are not always related to spikes in demand for physical gold (though a graph of their actual relationship, if any, might be interesting). Thanks. JMR --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Did you know that e-metal is a wonderful holiday gift? Avoid the hassle this year!
