Digital Gold

 
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Digital Gold Information


Digital Gold


Meeting the Demands of Online Trading and Marketing:


With the evolution of the modern computer age and the emergence of the internet as we know it today, the popularity and growth of online trading and/or marketing plus the increasing demand for immediate settlement, has proven the previous methods of payment to be outdated and impratical.

While many internet transactions have been settled using credit cards as a means of payment, this method has the disadvantage for the merchant that the payment can be reversed sometimes months after the actual date of the transaction. The use of credit cards for internet payments has also given rise to an ever increasing problem of internet fraud, with the number of stolen cards or card numbers increasingly being traded quite openly.

The need for a convenient method of online payment has lead to the creation of several new methods of exchange all of which are commonly referred to as Digital Currency which is, a means of currency that can be spent by either an online commodity trader or purchaser of other goods or services, providing an immediate settlement with a guaranteed non reversible payment being received by an online trader or marketer.

Digital Gold

Digital Currency

There are several providers of Digital Currency and this page principally describes those providers that back their currency with physical gold, usually gold bullion.

What is a DGC?

DGC is a Digital Gold Currency and is a broad term often used when talking about e-Gold, Gold Money, or 1MDC. Some of the digital currencies are backed by real gold bullion stored in vaults, while others are only backed by a fiat paper currency.

What is bullion?

Bullion is one of the oldest forms of money on earth. Bullion is money in the form of bars, coin, wafer or ingots. The bar form carries a serial number and stamp of a recognized Hallmark Grade refiner.

What is e-gold or e-Bullion®?

e-gold or e-Bullion® is electronic bullion: international electronic currency fully backed by physical precious metals stored on behalf of account holders in Treasury Grade bullion storage facilities.

Fee Comparison Chart for Digital Gold & Digital Currency



e-gold

Pecunix

e-Bullion

PayPal

Liberty Reserve

e-Currency

WebMoney

Digital Form

Gold

Gold

Gold

Currency

Currency

Currency

Currency

Location

USA*

Panama

USA*

USA*

Costa Rica

USA*

Russia

Backed with actual gold?

Yes

Yes

Yes

No

No

No

No

Transaction Fee

1%-5%

0.15%-0.50%

0%

2.4%-3.4% + $0.30

0%

0%

0.8%

Minimum Fee

~$0.01

~$1.18

$0.00

$0.30

$0.00

$0.00

$0.01

Maximum Fee

~$1.18

~$70.80

$0.00

$1000+

$0.00

$0.00

$50.00

Monthly Fee

1% of total

$0.00

~$7.86

$0.00

$0.00

~$7.86

$0.00

Optional Privacy Fee

Not Offered

Not Offered

Not Offered

Not Offered

$0.75

Not Offered

Not Offered

Cost of a $1000 Transfer

~$1.18

$2.33

$0.00

$34.30

$0.00

$0.00

$8.0

* — Administration and bank accounts are under US jurisdiction.

Digital Gold

Digital Gold

What is Digital Gold?

The answer is simple just ask yourself:-

Is it backed 100% by physically existing gold that is securely stored and is independently audited?
– OR –
Is it backed by a fiat paper?


Digital gold has several advantages over actually physically owning and/or holding gold bullion. With gold bullion you have to pay a bullion company to safely store your gold which is more expensive than it is to store digital gold. Should you decide to take delivery of your gold bullion to avoid the bullion dealers storage charges, you firstly have the concern of security, and secondly when you want to convert any portion of it to cash currency, you will then have to have it re-assayed which normally takes approximately seven days and you will also have to pay the assay costs.

At the time of compiling this page there are five current providers of storage for Digital Gold:- e-gold (the conceptual pioneer) - e-Bullion:- (who trade in both Gold & Paper) - GoldMoney:- (trading since 2001) - Pecunix:- (a recent provider) - c-gold (started operatig early July 2007)

These companies only supply storage and accountability of gold; you cannot buy gold from them or sell gold to them (it would seem that the new statup c-gold intends change this). To load or draw from your digital gold account you use another entity to exchange currency to gold or gold back to currency, about which more will follow later.

Digital Gold can be a very safe way to store your money, because gold, unlike paper money does not run the risk of inflation. If you want to save and/or invest your money in gold, whilst also enabling yourself to be able to make instant and secure (much more secure than credit cards, for instance) internet payments, digital gold is an ideal means. All you need is a computer with an internet connection, and once your account is loaded (funded) you can trade your digital gold with any other account holder in the world without the complications of foreign exchange.

Digital Gold


The Original Concept

The orininator of the Digital Gold concept was e-gold which first started trading in 1996, and they have retained the original format to this very day, whereby a customer account is created within the e-gold computer database, and which once established, may then be "loaded" with a holding of "virtual gold/silver/platinium or paladium".

The value of a clients current precious metal holding is not specified as a value of currency but rather as a value in grams and/or troy ounces, and is backed 100% at all times by a corresponding amount of actual physical gold/silver/platinium and/or paladium that is held in trust for the client within a secure vault.

Once egold has established an account for a client this account may then receive gold as payment from any other account holder but the account must have gold "loaded" before being able to spend. Seeing as e-gold does not buy or sell gold but only transfer title from one account holder to another, when an account holder does not have sufficient gold credit in the account for a particular purchase, then gold must be purchased from an independant merchant who exchanges currency for gold, which is then deposited with e-gold to the purchasers account.

The independant auditing of the current client account holdings and the matching gold held in trust is quite transparent, and is available for viewing from the e-gold site at all times.

Since e-gold commenced trading there have been others that have followed their lead with some adding their own additions or changes to the original comcept.

e-gold Milestone: Ten Years Online

Digital Gold

Digital Gold Account Providers

There are currently (August 2007) five companies active on the WWW offering on line gold storage facilites, their conceptual models and the terms and conditions that they offer to prospective clients may differ from the well established e-gold concept. We have provided a listing of these companies below so that any of our viewers that are interested in the Digital Gold concept may form their own opinions.

e-gold


e-Bullion


Goldmoney


Pecunix


C-gold



Digital Gold

The Currency/Gold Exchangers

The merchants who specialise in the exchange of currency to gold and/or gold to currency are the other important link in the Digital Gold process. While some of the more recent Digital Gold Storage Providers (DGSP) above do also provide the facility to exchange gold for currency or currency for gold, not all have adopted this procedure. The DGSP usually have a link from their website to the Currency Exchange Merchants that will accept or change their gold, and as the rates of exchange do vary from merchant to merchant, it may be wise to compare the rates on offer.

 

Digital Gold



 


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