Well Jim, you see, we have borrowed against our shares to buy more shares to borrow against and we then traded some gold puts and ended up with almost twice the fiat we had started with and get to keep a cut of the dividends as well. We then bought e-gold from our own subsidiary at no surcharge, stored at 1MDC and threw a party from the profits.
Just imagine what we could do if there were 20 companies listed and a bit more of activity. Now, as both Frank and you stated, OmniPay would have no problem to buy and later sell gold for $2,000,000.00 in my scenario. What both of you seemed to ignore is that this world of ours is far from perfect. Hence the 2,000,000 needed volume is likely to be spread over 200 exchangers who are bying from 20 exchangers who are trading with each other and in the end with OmniPay. In the meantime exchangers will increase fees fro in-exchange and drop fees for outexchange to make a quick buck, as they should. Next people who habitualy spend $100 a month at TGC and pay us $7.50 for a hosting account are struggling to get their hands on e-gold this month. Of course, as you suggested, some people have e-gold in stock to buy shares, but I could hold the internal trade stats of CF$x accounts at the time of the TGC casino against your argument. Basically there was quite a spike. And TGC didn't even sell out for months and JPM cornered 10% of the market. Based on that scenario, if there was 20 types of shares, and some were being bid up just before dividend time, ther *would* be a run on e-gold. And then there is the variable called spot rate. Imagine between OmniPay securing 2,000,000 worth and making the spends to the exchangers the market drops $8 per ounze. Of course, in gold terms that doesn't make a difference, but when the shares are sold and the sellers want to outexchange... All the while exchangers recall your posts and don't increase the fees on outexchanges because 'just yesterday everyone wanted to buy', and then the market drops some more... We are talking unprecendented volumes here. Sure there is a lot of e-gold in circulation and holding more or less steady. But if there was a healthy share market with lots of volume spikes during IPOs the amounts involved are not easily absorbed by a market (as in goods and services commonly traded everyday) that has reached equilibrium. And the there is the option that IPO revenue goes straight to the former owners who have little personal use for e-gold in the real world and are likely to outexchange large chunks as soon as they receive them... So, no it is not all well when suddenly there is more gold being used for share trades than for the 'normal' day to day dealings. And yes, it will influence the smoothness of transactions. I suppose time will tell, but I can almost see people exchanging shares instead of e-gold because at times it's so darn difficult to get e-gold. And I am basing this on experience as well. We were actually offered 2 TGC share as payment for something... In the end, I am throwing these things up for people to ponder not to defend them as gospel. Cheers, Robert. budget & privacy website hosting http://www.cyberica.net start a profitable online business http://www.cyberfrontier.biz budget domain registrations http://www.u2planet.com --- 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.
