January 14th, 2007
The Top Of The Pyramid Is Digital Gold Currency
(4) ‘Digital Gold Currency’
All of these accounts are free and simple to open!
‘Digital Gold Currency’ or DGC, as it is commonly known, is different than most other privately issued Internet units of value. These well seasoned companies, their hardware servers, banks and business offices are almost exclusively domiciled offshore outside of the United States.
Value held in a ‘DGC’ account is 100% backed by pure gold bullion bars or even other precious metals which are allocated in a secure and insured vaulted storage location.
At no time are there more digital dollars issued than there is value of pure gold held in the vaults. Please some of the following information statements from the DGC operators.
The e-gold Account User Agreement specifies that:
“All e-metal in circulation shall be backed 100% at all times with unencumbered metal in allocated storage”. Examiner is a real-time report of Issuer’s compliance with this definitive provision.
Pecunix
The lynchpin of Pecunix security is the “one to one” rule: every unit of value present in the Pecunix database has, at all times, a corresponding value of gold stored in an internationally approved vault. Pecunix is not a paper currency backed by the vagaries of national interests; it is a currency with actual weight behind it - the weight of real, solid gold. More details…
For every single goldgram and silver ounce recorded within GoldMoney, there exists an identical quantity of grams of pure gold and ounces of pure silver in allocated storage at insured vaults. All of the gold and silver bullion owned by our customers and recorded in their Holding is stored free and clear from any creditors’ claims against GoldMoney or the operator of the Vault. Title to the gold and silver bars in allocated storage at the Vault at all times vests only in the GoldMoney users. The operator of each and every vault maintains insurance coverage at least equal to 100% of the value of the gold and silver owned by GoldMoney’s customers.
What Makes A DGC Different Than Any System Lower On The Pyramid?
Money in DGC accounts is not pegged to any world currency and it is in fact pure gold which is considered safe from all previous manners of inflation, deflation and ‘regime change’ which is a phrase that has recently become popular with the media. When you make a purchase of a ‘Digital Gold Currency’ from a company such as e-gold, GoldMoney or Pecunix, you are actually purchasing a part of stored pure gold bar. Your DGC account is denominated by weight.
When you log on to your e-gold account you will see your balance displayed in weight showing ‘grams’ or ‘troy ounces’ which are being held on your behalf. Add money to your account the weight balance shown will rise. If the price of gold increases as it recently did from $480 to $600 the value of your account would have also increased accordingly. However, this does work in reverse, if you held a gram in your account months back it may have been showing an account value worth $21.50 but that same gram today may only be worth around $18.50. The balance of all DGC accounts will fluctuate daily with the movement of the precious metal held in that account.
Gold is always a liquid commodity. It cannot be destroyed and it cannot be created. Basically, anyone can buy or sell any amount of gold, plus the markets for trading precious metals such as gold are quoted globally and open year round.
This is truly the Internet’s perfect form of digital commerce. No currency changes, no border restrictions, no credit card chargeback’s, no worry over wars, weather or illness — gold will always be there and always be used as money just as it has for thousands of years. The growth of the internet has just set in motion the the next thousand years of digital gold commerce making it simple to instantly do business from your PC anywhere in the world and with anyone else. Transactions are not reversible, accounts are free to open and transaction fees are some of the cheapest on the Internet. (much less than credit cards) There is NO distinction between a merchant account or a personal account and no application forms.
The value of all DGC accounts can change with the rise or fall in that metal’s price. However, account holders may at any time find the exact cash value of their account. Simply log in and select your preferred currency from the dropdown list (21 different world currencies) and instantly the cash value, worth or sale price at that moment in time will be shown on the screen. This is the amount value you can exchange for cash at that time.
Last year e-gold completed over a billion US dollars worth of transfers for their clients. In addition, all DGC companies have experienced very good growth in the past several years. However, e-gold remains the most popular and most active of all DGCs. To compare, if you remember PayPal now has over 113 million accounts and today e-gold has around 3.6 million.
All ‘Digital Gold Currencies’ are traded by third party agents just like regular ‘Digital Currency’. However, some of the gold currencies can be purchased from the actual issuer such as GoldMoney and e-Bullion also holds a very close relationship with their bullion sales.
The actual accounting of all DGC transactions takes place by weight. Here are some quick examples:
- If you are selling $100 of Pecunix, your account will show the transfer of 5.158grams (AUG) at today’s price of $19.387 per gram of gold.
- Now if you lived in the US and were sending $100 USD of e-gold to your friend in Germany, his e-gold account would show received 5.158grams (AUG) but as he checks the local cash value of the account in euro he would see the worth of his account has grown by €78.64 euro.
- Then your Japanese friend received his $100 USD or 5.158grams(AUG) and his Yen account is now showing a plus of ¥11,757.66
In all of these transactions and in any one of 21 different currencies — the movement of value from one account to another is denominated by weight. Gram to gram. Troy ounce to troy ounce. Plus, don’t forget, all transactions are final, no chargeback’s.
It is this principal which allows the DGC parent company to live up to its promise of 100% backed by gold. Your online account today shows a kilo of pure gold and the vault is holding that kilo of pure gold on your behalf. No matter what local currency you are using or in what country the weight of your kilo will never change. Also don’t forget, if the world value price of gold changes up or down so will your account value.
This is by far a superior method of transacting business over the Internet. There are several popular main digital gold currencies:
All ‘Digital Gold Currency’ transactions are non reversible and final. To an online merchant, this means no chargeback’s or CC fraud. As the e-gold slogan says, “Get paid and stay paid”. Unlike some ‘Online Payment Systems’ (PayPal) all DGCs can be used by anyone in any country the world over, they are truly a tool of global commerce.
Additionally, unlike credit card transactions, all DGC sales are instant. Once you are paid your funds are available in your account that very moment. You can literally take it out the cash just seconds later.
DGC accounts do not differentiate between merchant, business or personal. All accounts are basically the same so if you wanted to begin accepting a ‘Digital Gold Currency’ as an Internet merchant selling goods, your new DG-COMMERCE account is just moments away. There are no lengthy applications or credit checks and since chargeback’s are impossible, there is no reserve account for fraudulent credit card transactions.
If you understand that 3/4 of the world does not own a credit card, then you should see the global benefits of accepting DGC. If you currently accept credit cards or PayPal, the addition of a ‘Digital Gold Currency’ is sure to interest a more international crowd of buyers with the potential to increase your sales.
Third party independent exchange agents generally will all accept the purchase, sale or exchange of any popular ‘Digital Gold Currency’. From an agent’s point of view, one gram of e-gold - is one gram of GoldMoney - is one gram or Pecunix and so on….however, just remember all agents change a fee for their services and and risk. Low fees and agents can be found here at Gold-Rates.net.
Opening accounts is free, transactions fees are very low. Micro or mini transactions such as one penny are easy and inexpensive. If you require mass payments a DGC will nicely accommodate your business.
DGC companies are privately owned and almost all are domiciled outside of the US (except e-gold’s servers and business offices are in Florida) Restrictions on usage and regulations for DGC payments are less than their US counterparts listed lower on the currency pyramid. Companies such as e-gold, Pecunix and 1MDC provide excellent shopping cart integration, documentation and support information to add a DGC to your web checkout.
This completes our currency pyramid. I welcome your questions, input and opinions.
Mark Herpel
Panama@cryptoheaven.com
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