> I recently saw this new goldhedge.com site, and I wondered why they are not > offering the opposite service as well. > They offer you a fixed US$ amount for your gold, but I think there would be > at least equal interest for a service that offers a fixed amount Grams of > gold for your $. > That would be a very useful service for the market makers, because now they > are taking risk when they accept a big order for e-gold at a certain rate, > as the price of gold can easily go up by the time they get the check for the > order.
In theory this is certainly true; however, from a practical standpoint, it is more expedient for an exchange maker to wait until the customer has delivered his funds before making such a commitment. It is simply not reasonable to expect an exchange maker to assume this risk. Logic dictates that it is incumbent upon the customer to transfer his funds to the exchange maker before any transaction can occur. > > Because goldhedge is using futures position to deliver their service, they > could as easily offer fixed amount of gold for $ service. > (and why not the same services for silver, platinum and palladium ?) > We are certainly not opposed to providing hedging for the other e-metals. Silver is the most likely possibility in the future. As for platinum and palladium, these metals are not heavily traded, which means liquidity (i.e. getting your orders filled) becomes an issue. We prefer to avoid situations where we would have difficulty promptly meeting customer demand for new hedges and redemptions. > That would open a lot of possibilities. > Let's say you can do a $ investment that will give you a 20% return by the > end of the year. > Interesting, but your fear is that the dollar will drop in the meantime, > which could erase your profits. > I know I will have xxxx$ coming in by year end , and I could go to goldhedge > to fix the amount of gold I will get for these $ at near today's rates... > If the dollar drops in the meantime it is no problem because I have hedged > them against a fixed amount of gold... > > Again, this is certainly a good idea and there are many investors who do this world-wide on a daily basis; however, it is not likely be something in which we would ever become involved. Among other things, it would expose us to enormous amounts of government regulation and expense with respect to money laundering laws, CFTC registration as a commodity pool operator, etc., etc. In our current scheme of things, we are able to avoid all of these issues. We prefer it that way... :-) If someone is interested in hedging in this manner, I would suggest opening a commodities trading account and having at it! We have used Lind-Waldock in Chicago (http://www.lind-waldock.com) for many years and are very pleased with them. David Steele [EMAIL PROTECTED] --- 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.
