Dear James,

Thanks for the information on MAT/Via Mat.

It would seem that there is at least an implied criticism of
e-gold's storage practices to be made here.  In particular,
from an e-gold page at
 http://www.e-gold.com/ceal-inspection-2001-02-22.htm
we have, "Inspection of gold, silver and palladium bars and 
platinum sponges held by a chartered bank in Ontario (the 
"Repository") on behalf of E-Gold Ltd."

Frankly, I find this confusing, because their page:
 http://www.e-gold.com/examiner.html
suggests that all their 400 oz. bars (which are not all
400 oz., as we know) are stored in Dubai, Zurich, or
London, as far as I can see.  So, why are there 116 bars
in a chartered bank in Ontario?  Who knows.  Two of the
bars e-gold thought it had proved not to be there, and
two other bars were there instead.  Not exactly a worry,
but not a huge comfort, either.

Could a chartered bank in Ontario be one of the bullion banks
you mention in your messages?  If so, I wonder if people are
putting excessive faith in e-gold which might not be quite
so warranted?  For some time, I've preferred both GoldMoney 
and 3PGold as rational alternatives to e-gold.

Two further clues to e-gold's gold storage situation seem
to appear at:
 http://www.e-gold.com/unsecure/thelist.htm#admin
which lists JP Morgan Chase and Transguard as repositories.
The JP Morgan Chase link reveals a contract with a London
facility operated by JP Morgan Chase, which might correspond
to some of the bars listed as being in London, I would guess.

Transguard is the Dubai facility, which has been described
in a Wired magazine article by Julian Dibbell, and on the
e-dinar site, I think.  The Dubai facility is secure storage
a the Dubai airport, which sounds a lot better to me than
anything to do with JP Morgan Chase.  It seems to me that
JP Morgan Chase is one of the big New York banks that exerts
tremendous influence over Federal Reserve system policies,
such as the interest rate (yield curve) situation you mentioned.

So, with bullion banks in New York and London and perhaps 
elsewhere technically insolvent, I wonder how we should all
react to the presence of e-gold, Ltd., bars of gold in storage
in these places?  A flight to value might be in order.

Just a thought.

Regards,

Jim
 http://www.goldbarter.com/ 
 http://www.two-cents-worth.com/?101468&EG


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