PeterB

It seams to me that whenever large amounts of gold are needed there is always a short supply... case in point, Trader-jack and ST. Is there a limited supply in the HYIP world? can someone explain where the exchangers get the gold and do they really hold it or what, can't they get more and get things a little more liquid? If this is really the case then the HYIP's are not totally to blame for the delays, rather it's the gold merchants who are responsible for the short supply.

For example, whenever we want to buy gold we have to wait for the guys like london gold to get some first from gold that they purchase from us, when we cash out... why not just buy more and get it into the system. Which leads me to my next question, If there is not enough gold then why do we bother with it, why not just use cash?

Hippie

In the HYIP world it is not gold that is in short supply: it is e-Gold the artificial gold, it is hard to imagine it being legal tender anywhere on earth except places like HYIP.

The artificial high demand is generated by the demand for its use as a medium of exchange, zapping it from one account to another to make e-Gold the company rich.

Why not use cash? It can't be zapped from one part of the earth to another without incurring high charges.

In terms of the real gold (not e-Gold) it has been the de facto medium of exchange since ancient times, which is acceptable by many nations. The validity of cash on the other hand depends on that currency's government honouring its debts, that the nation continues to prosper, if it doesn't: that currency not acceptable, worthless, kaput.

jambutty

As I understand it allegedly for every gram of E-Gold in E-Gold members’ accounts there is real gold stored in a vault that belongs to the payment processor named E-Gold. It isn’t an actual vault that they own but the gold is held in various banks around the world. It is the same with your pound or dollar – it is backed by real gold held at the Royal Mint in the UK and Fort Knox in the US. In theory you could go to the Bank of England or America hand over your paper cash and come out with real gold. I said in theory!

So no matter whom you buy your e-currency (E-Gold) from they get it from E-Gold if there is any e-currency to spare. E-Gold do not sell direct to their account holders but will sell to registered brokers.

Basically there will always be enough e-currency available but it takes time for brokers to do the deal with E-Gold.

I’m not absolutely sure how it works but I should imagine that a broker would pay E-Gold in hard cash for an amount of real gold. E-Gold will then buy real gold for that cash and issue e-currency E-Gold to that value.

I hope that makes some sort of sense.

PeterB

hmmm. i see, however as i see it (and i stand to be corrected) the value of our currencies used to be based on gold then toward the end of the 70's currencies were allowed to "free float", with it's value being based on the supply and demand principal... Which paved the way for other forces in the market to have an influence in it. ie. GDP, GNP, jobs growth, oil, manufacturing, and a host of other influences... even the weather.

If you look at many (if not all) African countries, their currency values have fallen off the planet, yet some of them have the richest gold and diamond reserves in the world, and even oil. So, if the strength of a currency is based on gold then something is wrong. But I must agree that the gold stocks do influence the value of a currency, but then so does tourism.

Any way, this could probably turn into a book... so back to the point, If any one knows how they purchase the gold and convert it to an e-currency... I'd really like to know.

Sofaking

wow, Jambutty, you must know EVERYTHING

jambutty

As you say PeterB a country’s currency value is based on more than just the actual gold held in the country’s vaults but that’s the way that it used to be. But if it every came to a total world recession the like of which we have never seen before then gold held in vaults will be king. Silly really because you can’t eat gold.

I’ve had 68 years to accumulate knowledge notlohreg but it is a long way off EVERYTHING.

Trinary

e-gold also sells gold to users if they want to use omnipay.com, but requires at least $1000 or so. They store actual gold, so it's not owning 'virtual gold', but you own ACTUAL gold.

Anyway, hyips running out of gold just means they're out of money... and exchangers doesn't always store that much excess gold. I personally go straight to omnipay if i want more gold, but I'm only withdrawing from e-gold from now on, mostly.

Many stores completely unrelated to hyips accepts e-gold as well. I bought some really nice jewelries from http://www.treasuredfinds.com for example with e-gold (but you have to contact the owners first, they don't currently have e-gold shopping cart available anymore because last year e-gold weren't that popular).