-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 This spot price discussion is important:
E-gold wish to give their customers the perception that they have real gold in their accounts (gold itself, circulated electronically), but then Omnipay tell you they are not willing to honour that fact, and offer to buy it back from you at less than what they themselves have told you it is worth! Robert says we should buy gold currency at spot, but only be able to sell it at spot -4% (or so), but this means that the currency is no longer worth the spot value, it is worth spot -4%... there is no way to look past this, the value of a thing is set by it's buying power, as John explained. IOW the price paid by the exchange-of-last-resort (in e-gold's case Omnipay) sets the value of the currency, not the published spot price... In e-gold's case, the spot price published by e-gold is a lie, because they do not honour that value. What I see is a gross misunderstanding here (where's JP May when you need him?). Some time ago JP had a rant on this list about spot prices... in short, he insisted there is no "spot price"... so what is spot price? We have markets, where people buy and sell gold... they offer to buy at a certain price (bid) and offer to sell at another (usually higher) price (ask). So again, where's the "spot" price? As far as I can see, "e-gold spot" is some arbitrary figure that e-gold periodically simply "choose", based (perhaps) on the movement of the international markets. It really has no meaning whatsoever except that users of the e-gold system "agree" to accept this "spot" as the value of the e-gold when they trade. Obviously to set a value on the e-gold currency like this, then not to honour that value simply does not make sense, and is misleading... this whole fiasco really illustrates the confusion at e-gold on some things (note: they also list the gold stored in the e-gold gold xxx trust as an asset of e-gold :-)). In short is seems e-gold arbitrarily choose a value for e-gold, then their own exchanger dishonours that price. It would be far more sensible (and honest) to simply set their spot price at 2% lower, and buy back for spot and charge the spread above that spot price. Goldmoney, do an equally silly thing... they use the rates from Kitco.com... Kitco publish a bid and an ask price (http://dgcsc.org/goldprices.htm) and goldmoney use the bid price as the "spot" price in their system... Note that the bid price is the "buy" price, that is the price that kitco will pay for gold, so it is correct to value your goldmoney at this level. BUT then when you try to sell your Goldmoney, they offer you 2% BELOW BID! How silly is that? The whole point is that SPOT IS AN ARBITRARY FIGURE, so to treat it as if it were some finite "ordained" value and then to base your buy and sell either side of that because "that's how everyone does it" is just silly. That is NOT how everyone does it, they have a bid and an ask rate, and at any time, the bid rate is the likely rate you will settle at if you sell... that is the true value of the currency and is what should be reflected in the account value. Note Pecunix bases it's price on the bid and it appears that e-bullion also understand this (I wonder why... experience?). Thus we at open2exchange still buy all Pecunix and e-bullion at the quoted Pecunix/e-bullion price, as do e-bullion's in house exchange. In order to help reduce the barriers to entry, Pecunix subsidises the exchangers for all larger purchases and they get their Pecunix at the Pecunix published price (spot). That is why you can still sell your Pecunix at spot and buy it for less than 3% above "spot". Ultimately I hope all will see the non-sense in doing things the way e-gold/goldmoney does, and we will again have sanity... Sidd. -----BEGIN PGP SIGNATURE----- Version: PGP 8.0.2 iQA/AwUBPvzC470kC5qj7gUjEQJDjACghnxPzYizi1wI0CM/Qc0xmMY1s2cAoNyF dMIU2FfWtP0ewrG1gXUv6Kkp =qRbW -----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.
