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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (63602)	2/9/2001 2:19:19 PM
From: Claude Cormier	Respond to of 116796

<I think this is potentially the biggest potential "flaw" in the e-gold/goldmoney concept. The exchange brokers may not have the financial security, reputation, bonding, etc.. that is required. > Certainly true and very important. That is why GoldMoney first master Cambio is Fidelitrade <A failure of an exchange broker could unfairly taint the entire e-gold/goldmoney system.> Well... not more than the failure of a Thomas Cook (or other well known fiat currencies brokers) would affect the Bank of Canada, Bank Of Japan or US fed, if they would go under. But, even if it is hard to fail in this kind of business...(you exchange money for money at a small spread...all you need to do is to control your inventory). <Brokers also add an intermediate transaction layer, which increases costs due to commisssions. > It is true also in the paper currency world. DO you frquently exchange USD for other currencies, my friend ? The spreads will become very similar around 2.5 - 3% I do. CAD for USD and vice versa, very frequently. I know what it is to pay the spread on exchange rates. <It also seem counter to the "Internet revolution" of disintermediation, where the middle man gets completely eliminated (i.e B-to-B exchanges, auctions, etc..) > Well you can eleiminate the middle man in gold currencies. There is a bearer instrument named Digigold that does that. But there are other risks associated with that. Claude.