Another virtual way to pay, or rather, to raise real capital.
May 26, 2008 by moneypenny
Filed under Personal Finance
A warm wish to all those on b5media, and of course our readers, remembering the fallen on this Memorial Day 2008. May all those who served and are serving, be remembered. Here’s the link to participate http://www.nationalmemorialdayparade.com Last week I wrote on web money http://www.bizzia.com/webmoney-online-payments/ and it seems that every month, there’s a new way to pay on-line. Are these virtual companies using our money held-on-line to trade with? Are they using customers online funds to raise capital to trade with. Ask some finance wizzes or a group of investment bankers, and they will tell you that for the small benefit of giving customers an alternative to using credit cards on line, these payments companies get to hold real money on behalf of the customer, and trade with it? The gold-related payment setups must be doing this. The sites tell you that the gold value is not linked to the current price of gold, but you can bet your bottom dollar, that they care about the fluctuations in the price of the commodity. A clever scheme, e bullion, and others, convince the public you can create a monetary system outside of the mainstream, and apart from the normal US dollar currency, and they will come. Those who use them swear by the safety, legality. etc. But the facts behind the incorporation, the location in Delaware, the gold vault stores, all open up many a can of worms. What’s the point of basing the investment on gold, if the investment its not linked to the commodities value? These are the questions I, and others very trained in financial instruments, are asking? Maybe we can because we are not invested and can still see the woods for the trees, or maybe we have just missed something. But I smell a rat, a big rat. Mark Herpel wrote on these gold payment companies like e bullion, a lot, and now writes DGC mag http://www.dgcmagazine.com So perhaps he would agree to answer some pertinent questions. Are you up for the challenge Mark? Moneypenny
These gold money companies are are going to run into legal problems, sonner or later. Theres a reason why they hold onto your money and make it difficult to close an account. Yeah, they are using clients money to make money, with bigger risks than banks.
They also rely on the fact, that you’ll start buying “gold” strat trading, and get sucked in too deep.
Indeed,there are many scammers using E-gold.But,I think it’s better to catch
cheaters and then,punish them than make
life of honest users (using E-currencies) harder by introduction of various restrictions.