Hello Claude,
"Why? WHat exactly in the user agreement should be changed so
its constitutte true title. I read it many times and it seems clear."
The GM user agreement is fine, as long as they can deliver on the promises
made in the user agreement. Their current system cannot deliver on one of
those promises.
The agreement says,
I.A.ix.
1. "Holding" means the electronic record of:
2. The quantity of grams of gold HELD at a Vault BY A USER, which
quantity is expressed as GoldGrams;
3. The Users transactions on the GoldMoney payment system;
4. The fees levied for services provided to the User.
I'll beat this dead horse one last time. A custodial system must meet two
requirements:
1. Ownership must be specific: The custodian has to be able to identify
which particular gold object(s) in the vault belongs to each Holder. If it
cannot identify which piece of gold belongs to which Holder, then it is a
deposit currency system.
2. Each holder must have clear title to his gold objects. In other words,
each holder must be the sole owner of the gold objects in his holding.
There cannot be commingled ownership of gold objects by more than one
holding in a custodial system. To demonstrate this point, try calling up
VIAMAT or any other custodian and tell them you would like to bail in a half
a bar of gold. Or ask them if any of their clients want to sell you half a
bar of gold. Or tell them you want two accounts that both own the same
kilobar. The company will not allow you to have two accounts owning the
same object, because they are custodians, not bullion bankers. They might
allow one account with two signatories where both signatures are required to
withdraw the bar. But one bar cannot have two clear title holders. Clear
title means no one else has a claim on the object but me.
If those two conditions are not met, then GoldMoney is a deposit currency
and GoldGrams are someone's liabilities. (In this case the group of all
holders.)
The GoldMoney user agreement says, "The GoldMoney payment system [snip]
facilitates the CONVERSION of physical gold into GoldGrams that are then
capable of being exchanged electronically between Users of the payment
system, for the purpose of making or receiving payments."
The agreement says right in plain English that your physical gold is
CONVERTED into GoldGrams. That is because GoldGrams are deposit currency.
If GoldMoney were a true custodial system then your physical gold is your
physical gold. It wouldn't be converted INTO anything. But it wouldn't be
divisible either.
GoldMoney allows physical gold to be converted into finely divisible gold
liabilities called "GoldGrams". GoldMoney is a great deposit currency!
Their user agreement uses the language of something that they are not - a
custodial gold system. They are confused and so are their lawyers.
I think I've beat this one into the ground now. If anyone doesn't understand
that GoldMoney is just a deposit currency, then I guess I'll never persuade
them.
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