E-Gold | A Digital Gold Currency

Nowadays it is possible to transform paper money to gold and silver with the help of Digital Gold Currencies (DGC). A new international giro banking system was built without the public taking notice of that. By use of that system one can transact payments on basis of gold and silver worldwide via internet. About 15 years ago, a man called Douglas Jackson, a doctor from Melbourne, Florida, was very fascinated of the idea to create an internet-based payment system which was supposed to be based on gold and silver. Therefore he sacrificed his doctor's office and sold his life insurance. After this radical change he had a sum of 900.000$ in liquid cash which he reinvested in his company e-gold. Within 15 years Douglas Jackson established an entreprise which today possesses 2.8 million accounts, returning profits of up to 2 million $ each year.
The company's daily turnover amounts to rounded 10 million $ which are backed by four tons of gold.
The gold is warehoused in London, Dubai and Zuerich. So as you can see, there truely exists a possibility to build an international payment system on basis of gold and silver.

But what exactely is e-gold?
E-gold is a closed system. In this system only one currency exists, namely gold (this is not quite correct, it only serves the purpose of a better understanding). Proceeding on the assumption that we transfer 1000$ to our e-gold account we might be surprised when we take a first look at the account balance. We are not going to see how many dollars, euros, yen or rubels our account is currently worth, but we notice that the total amounts to one gold ounce, respectively a certain information in grams of gold. This means that we are finally integrated into a whole new monetary system. The gold, which is in your possession now is indeed physically deposited. So this is not just
a hollow promise on a piece of paper! If we want to, we can directly instruct e-gold to send us as much real gold as we have in our account. Then e-gold or one of their directly affiliated sales partners will send us the metal.

No matter if we are in the United States, Japan or in Russia, gold is worth a lot of money all over the world. So if you want to transfer 100$ via e-gold, this amount gets recalculated in grams of gold and then credited to the payee's account. The payee now has some more grams in his e-gold account. The remittee can now ask e-gold to recalculate the payment into the respective national currency, correspondig to the current gold price. The only differnce for e-gold is that some grams of gold have changed their owner. As long as the currency keeps on circulating in the system, which means that the gold only goes from one e-gold account to another, it is an irrelevant piece of information for e-gold. It doesn't get interesting for e-gold until new money flows into the system or leaves it, meaning that it is "retransformed" to paper money. It's only interesting for the user how much his e-gold account is currently worth in real money, but that isn't of any importance for e-gold, because their system solely knows gold. It's in the nature of the market to make prices go up and down,and that is why there are price fluctuations in gold as well. If gold would rise 100$ overnight, everything would suddenly get cheaper to a certain percentage because the gold, which is in our possession, would have gained some more purchasing power overnight. The other way round, everything would suddenly become more expensive. The one who really does lots of transaction via e-gold doesn't take notice of these price fluctuations because fluctuations in the gold price take place slowly.

How does e-gold work in real life?
E-gold can be used anywhere in the world. All you need is a personal computer and an internet connection. From there one can do any imaginable thing as long as the counterpart owns an e-gold account as well. Originally e-gold was intended for business-to-business transactions. For example a company from China offers porcelain on the internet. A merchant from the USA orders a certain amount of porcelain via internet. The merchant, which is our middleman in this example, has just purchased this porcelain and immediately resells it to the ultimate buyer. The point is that there is no need for a bank, no direct debiting system and no waiting period to settle this kind of transaction. The only requirement for all participants is to be connected to e-gold. The merchant transfers x-grams of gold to the Chinese company. In turn, the ultimate buyer transfers x-grams of gold to the middleman. None of the involved parties has to go to the bank. The whole procedure, beginning with the first order right up to the payment happens within seconds via the internet.
It might be that every person which was involved in that deal has calculated in his respective national currency, but e-gold did the transaction solely in gold. This is the way it works in private payment transactions, too. The only presetting necessary for a smooth course of business as described above: Both parties (buyer and seller) do have to be connected to e-gold.

Here's a short summary of all the advantages of an e-gold account:

- account opening goes of absolutely anonymous
- one can transfer any desired sum worldwide (at least as much as there is in your account)
- no high fees for payment transactions,you just have to pay one percent, but 0.5$/transaction at most
- there is worldwide access to your e-gold account by use of your anonymous money card.
- furthermore one has the possibility to speculate on precious metals or hoard a treasure of gold or silver. One can easily choose between all precious metals and then switch from one to another. So,if the gold price falls due to bad news, one can simply regroup in platinum or any other metal
- account opening is free

Possible dangers of an e-gold account:

- If a global catastrophe becomes reality and all electronic systems collapse you do not have your gold with you and can't use it because there is no internet

- If it comes to a total collapse in the headquarters of the e-gold trusts you would be completely helpless as well because a protection of deposits does not exist.

Analysis of these potential dangers:

Riots or even a worse, a revolution seem to be a very unlikely event in St.Kittis and Nevis, the islands where the e-gold headquarters is located. Both islands together only have about 1000 inhabitants.
Furthermore riots would have to happen overnight, when e-gold has no chance to outsource its activities somewhere else.

A scenario which is more likely to happen is e-gold being truely some kind of life-saver: an Argentine with a well-stocked e-gold account would have come through Argentinas constitutional crisis without any major problems.

You ask "Why"?

1. He is able to order all the things he needs for life on the internet, because of the simple reason that his gold is worth a lot all over the world.

2. He could leave the country without further ado and with nobody ever taking notice of his treasure of gold. Once arrived abroad, "the poor fugitive" only needs a computer with internet connection and immediately have at command his money, respectively his precious metals.The only thing he needs to remember is his password.

To come to a conclusion one can say that local crises or even transnational crises can be mastered without any major problems or losses.
BUT: One should allways be aware of the potential dangers, something can allways happen!

The following companies offer digital precious metal currencies as well:

- Gold Money
- e-Dinar
- American Liberty Dollar

You will find further information on the website of e-gold.

www.e-gold.com