At 10:10 AM 26/05/2002 -0500, jpm wrote:
>>Regarding your later question, e-gold do buy in advance of demand.
>
>I think you misspoke ian, you meant OMNIPAY.  e-gold doesn't buy or sell 
>anything....

Hi John Paul,

True! E-gold obtain gold bars in advance of demand from the general public, 
but this is actual demand from Omnipay (or anyone else if they could bail 
in gold) which is anticipating their customers' demand (as you explained).

(I wrote my reply before reading yours, but I figured some may benefit from 
another independent explanation.) This isn't the first time I have mixed up 
e-gold, G&SR or OmniPay in an otherwise reasonable explanation of the 
operation of the e-gold concept.

I know that you are much closer to the action than I. (Met them and had it 
all explained in person, and so on.)

What I did not understand (or remember) was that when e-gold needed another 
bar it was actually OmniPay who purchased it and then bailed it into the 
e-gold system without ever e-gold possessing national currency and 
thereupon paying someone for the gold. Strangely I was aware that e-gold 
does not have a bank account, but I did not make the logical connection 
that they never make cash transactions either!


Ian Green
http://www.107242.clicktwocents.com/
e-gold, e-silver, e-platinum, e-palladium
Elemental, my dear Watson!


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