>Tristan, this is pure speculation.

Dear JP,

It, in fact, may be. But here are the numbers.

Yesterday:
The e-gold trust owns (assets) 1,952,954.93 grams of gold
The e-gold trust owes (liabilities) 1,933,833.44 grams of gold

Today:
The e-gold trust owns (assets) 1,952,954.93 grams of gold
The e-gold trust owes (liabilities) 1,933,846.62 grams of gold

Notice how the assets are the same. Notice how the liabilities have changed.
Thus, the assets have covered the increase in liabilities.

Thus, this supports my assertion that e-gold purchases gold ahead of
demand, to account for future demand.

Now, I conceed I don't know for absolutely sure - this just seems to make
sense to me. At least this is how I would do it if I were running a
private currency backed 100% by gold.

JP - if one were running a rather large currency issuer like e-gold, one
would not scrape off gold from the bars each time a new liability is
exposed (when someone purchases e-gold from OmniPay). One would deal in
what is more efficient. In this case, it's bailing in 400oz bars at a
time, even though someone may have only purchased 40oz of that bar. The
rest of the 400oz bar is still in the system, ready to be purchased by
other customers.

Regards,
Tristan


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