-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 - ----- Original Message ----- From: "Danny Van den Berghe" <[EMAIL PROTECTED]>
: I don't mean the ETF will replace the paper currencies. : But somebody can build a DGC with the gold ETF as a backing, and thus avoid : the storage costs that normally come with setting up a gold backed currency. Hello Danny, I think that many people are under the misapprehension that the storage component in a digital currency system is a significant cost. This is simply not the case. The storage costs are miniscule in comparison to other normal operating costs. For example, e-gold currently store 1,702,593.19 grams of gold... the value of this is approximately 19.5 million dollars... storage runs at about 0.5% per annum on stored value (much better rates are available by negotiation)... thus the total storage costs for e-gold for a year are approximately $100,000 (max). To put this into perspective, e-gold stats page shows 40,000 spend's in the past 24 hours... multiply by 365 days to annualise this and we get 14.6 million spends... The total storage cost per spend works out at $0.007 per spend! IOW the cost of storage is entirely insignificant! This is why it is ridiculous (as some have done) to claim that a system that does not charge storage fees (such as Pecunix) has no gold. Obviously, the spend fees can be easily modified to take into account the storage, without the customer even noticing the difference... If you are looking for ways to make IG more economical, the storage component is not the place to look... Security and good governance at dramatically more expensive, and they are the essential part of the equation IMO. The ETF raises some serious questions in this regard. Sidd. -----BEGIN PGP SIGNATURE----- Version: PGP 8.0.2 iQA/AwUBPvYYg70kC5qj7gUjEQKlcACeKx0WbSHb/exvz/mrMrCjZSFPdOAAn2jZ mXgkq2Ar4Xtk3w8iLxbmbQ/Q =E2Y7 -----END PGP SIGNATURE----- --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
