Who are we?
The London Gold Exchange is the World’s largest and most established trader of Digital Gold and Silver (also known as e-currency, Digital Currency or e-money). We are a reputable independent international business with offices in Europe and Asia/Pacific.

What do we do?
We are a licensed and accredited Digital Gold and Silver Exchange Provider (or Market Maker). Our service gives you a quick, easy and most importantly, safe method to get DG&S in or out of your account. We have years of e-commerce experience and pride ourselves on our superb customer service. View client testimonials

Why are we different?
We focus only on Digital Gold, Digital Silver and Digital Currency and can offer you an unrivalled experience. We supply c-gold, e-gold, e-Bullion, Pecunix, Web Money and Liberty Reserve. Our unique ‘Members Only’ secure web site is designed to be simple and easy to use. We have a proven track record for speed and reliability and our members return again and again.

Why use us?
Members benefit from our competitive rates and can easily (after verification) send funds to us via domestic Internet bank transfers, International bank wire to our multi-currency International bank, deposit cash or transfer money using Western Union and MoneyGram. We offer a simple, fast & efficient service.

We welcome International orders from all corners of the globe.

Follow our easy steps to Buy, Sell or Convert Digital Gold Currency.

This is but one example I found on the web of digital gold trading,

but I have questions like others have about digital gold. Let’s take e bullion as an example. I sat down with three leading financial advisors and they had these questions  and many others too. So don’t shoot me I’m only the piano player, Yes I’ve read the sites.

Let’s start with e bullion, It’s headquartered in Delaware that rings a bell, the associations are not good.

But maybe that isn’t an issue though.

Next question: what do some of these statements mean? This one for example.

Can I take delivery of e-Bullion^®?
Yes. You may take possession of your e-Bullion^® through the primary funding/withdrawal processor for e-Bullion^®.  Currently that is Goldfinger Coin and Bullion Inc.  There is a small fee involved for converting e-Bullion^® to physical delivery. This is known as a redemption premium and will vary according to the type and amount of metal you wish to redeem.

What does physical delivery mean? That if I want my gold bars you’ll drop them off or DHL them. I don’t think so.

My biggest question however is that my digital shares are not linked to the current market value of gold. Why?

Are ebullion trading gold? Sure they must be, but why use gold to back the digital funds if it has no relation to gold’s current market value on the commodities market.?

Every US dollar was once underwitten by gold in the days of “in gold we trust” now the dollar says “in God we trust”.So this is not a strange concept.

Why are e-Bullion^® services not offered in some areas?
Some states and jurisdictions may require the acquisition of a specialized business license under local law, in connection with some of the services we offer. Rather than bearing the administrative burden of meeting these multiple licensing requirements, we choose not to offer e-Bullion^® services in those areas.

944.09

That’s the current gold price listed on the Londongoldexchange site. I have one question, why link the actual price of real gold to digital gold? Does the investor take delivery of real gold, or shares in real gold or silver held in a vault? This is the question I and other financial brokers have about trading in e gold and others. And what is a market maker? Perhaps Benson or Mark over at DGC who have traded in digital gold, can educate us better.

Have a comment?  want to answer some of these questions from our readers. Please answer below.

Moneypenny

Jeffrey Tucker over on the Mises.org Blog (Gold and the Dollar, Nov.7) posted this great chart comparison. The Mises Blog belongs to the Ludwig von Mises Institute, a research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics.

The two charts compare the weakening US Dollar right above surging Gold prices for the past 6 months.  Where do you keep your savings?

To find out more about the most convenient and cost efficient ways to buy and sell gold online, please visit any of these webs. Crowne Gold, GoldMoney, Bullionvault, Pecunix, Webmoney (WMG), e-Bullion, Commerce Gold, e-Dinar.

Reference: blog.mises.org

Crowne Gold does not make the front page of the HYIP gazettes, and for a good reason….Crowne Gold is one of the most experienced digital gold operators in the industry (its a no scam zone).

For persons wanting to buy and sell gold bullion and digital gold, this operation is one of your best chance at happiness.

Who Is Crowne Gold and what is the Crowne Mint?

Why should all gold investors need to learn more about this digital gold company?

Well….

1. They fought the IRS allegation of being a tax evasion scheme and won

2. Fought the US Federal governments allegation of being an illegal money transmitter, and won

3. Been issued a full compliance on the operational side of issuing a currency secured by gold in the USA

4. Own a mint that will send one troy ounce gold medallions for Crowne Mint to clients who request their physical gold holdings

5. Provides secure server placement in friendly jurisdictions

6. Provides 100% of the business of brokering gold and silver as well as issuance of a digital gold medium of exchange

7. Own the Precious metal seat on the Panama commodity exchange

8. Client gold is subject to monthly audit by both U.S. certified public accountants and internationally certified accountants.

Crowne is an amazing success story and they have build their operation on solid granite, so this one is not likely to crumble like so many other digital operations.

In Crowne We Trust.

The concept of digital money is not new. In fact as we’ve seen in the past months, its becoming more and more refined into what could almost be called a ‘retail marketing art form’.

One digital currency cannot dominate the globe and even a dozen different types is still too small a number to predict will lead the global market. It now seems the future will offer hundreds of different private online currencies and means of asset transfer. Each of these may be used for different reasons with some mutually exclusive of others and some in direct competition with each other. Perhaps its accurate to say that different brands of digital money will circulate with the public.

Which ‘brand’ you use could be directly related to your jurisdiction or your thoughts on freedom, age group, language, religion, local currency, banking relationship or even your sexual preference. Yes, sexual preference, lifestyle or what ever you might want to call it.

While you may not find a large population of gay and lesbians Internet users in Iran, or at least that’s their party line lie, this very large and wealthy market segment is a force in any retail industry. By accident, I found this great financial blog QueerCents choked full of good personal financial information from…you guessed it gay and lesbian person’s.  As Nina words in in her Introduction to Queercents

“Money spends the same whether it is carried in a purse or a wallet.”

This got me thinking, how about an online digital currency for the gay and lesbian community? Its an already large built in market of very loyal customers…..keep watching I’ll bet we see one sometime soon.  I’d consider that a ‘brand’ of digital currency.

Clearly, digital money has expanded globally in the past several years and will continue to do so in the coming decade.

Where can we expect future growth within the digital gold industry?

What’s the next big market on the horizon for DGCers? Will this growth start from an age group, a jurisdiction or some other random variable not yet on the financial horizon?

IMHO, I think the smart money (the Webmoney) should now be looking forward to the future and where they can expand their empire. I feel its important to try and predict where future growth and income will appear and directly cater to those customers.

What drives DGC expansion?

If tomorrow, you were to start a digital currency business backed by precious metal, what would drive your growth? Who is your target user?

Since we already recognize that NOBODY operating a digital gold currency advertises in the main stream media, except GoldMoney and those are highly targeted for Kitco visitors and ‘goldbugs‘ like me, I think its safe to say that we may not be able forecast future DGC growth by tracking newspapers, magazines or billboard ads.

At least that is what I thought until I read my friend Oluniyi David Ajao’s blog.  David lives in Africa and keeps a close eye on the everyday local uses of e-gold and other digital gold currency. He has an excellent post on the growth of e-gold use in Nigeria.  In fact he says that on a recent trip he found a local Nigerian city he found many offline ads for using e-gold, which is the first time I can remember off line ads for any digital gold currency.

It seems to me that jurisdiction, local financial methods or even bank availability could create some welcome digital gold niche markets. Nigeria is a good example. Additionally, possible future integration with the very popular online virtual game reality worlds like Entropia Universe, Second Life and Eve offer even a fastest path to widespread use and success.

Where will the next growth take place in digital gold currency and why? What do you think?

Is This Proactive Move By e-gold Having The Desired Effect?

Yes! ‘Investment web site’ operators and promoters are moving OUT of e-gold and into other offshore digital currencies.

Look around and you will find dozens of posts like these from the HYIP promotional webs, known as monitors. These two posts are from the Talkgold forums:

• “…I can’t operate as a monitor - can’t receive payouts or make reinvestments because of that block. May be it is time for all to stop use Egold and find another stable processor!”
• “How do I run a monitor site if account is blocked. I can’t make payment and get payouts from anyone”

All of these also from the Talkgold forums - “…tg is one of the top hyip forums in this arena.”

• “…its time to use a good alternate! what do you think about c-gold?”*talkgold
• “…Maybe all HYIPs should start using Pecunix or any other stable service?” *talkgold
• “…what do you think about Alertpay!” *talkgold
• “…It’s time for HYIP-admins to adapt their scripts and replace e-gold to other more reliable currencies. I can live without e-gold, e-gold can’t live without us.” *talkgold
• “I think we must use another e-currency”*talkgold - This comment from HYIPs.ir touted as the “Greatest HYIP monitor in Middle east with 14 language”
• “Looks like another e-currency will have to emerge.” *Comment by the Talkgold administrator

After reading the Talkgold forums, I’m reminded of how cockroaches run for cover at night when the kitchen light comes on!

Read more

It now appears that Dr. Jackson and the team over at e-gold Ltd. are making some bold due diligence moves in order to stop their digital gold currency from being used by HYIPs, Ponzi scams and AutoSurf programs.

These preventative measure will certainly not create an easy road ahead for the e-gold administration and their previous ponzi customers and I can’t image the mountain of paperwork now being created, but e-gold’s new actions seem to be exiting the HYIPs and driving them away from e-gold.

Three cheers for e-gold!

The e-gold tool being used in this crack down is termed the ‘value limited account’. Also known as a ‘blocked account’, it is quickly becoming the Ponzi’s worst enemy.

What does it mean when your e-gold account gets a value limit? Here is what might show up in your email:

“Your account has been blocked under our Rights of Association clause in the account user agreement.”

e-gold Account User Agreement: 4.6. Right of Association - Issuer reserves the right to refuse service to particular individuals or entities, at its sole discretion, with or without cause.

Unless the problem is corrected, a value limited account is 100% useless for any future business. Blocked accounts cannot accept any incoming funds. Read more

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What does it take to become a digital currency exchange agent in the US?

Currently, the financial rules and regulations are unclear. Digital currency and digital gold, like the Internet, are only about ten years old and there are no specific laws on the books yet regarding whether this stuff is currency, gold bullion, digital money or something else.

I’m reminded of that Monty Python Flying Circus line, “and now for something completely different!” Welcome to the world of digital currency exchange agents.

The operation of an exchange provider is a financial go between in the middle of money transactions and the public. Since there are no strict regulations for becoming an exchange provider, the industry players are considered ’self regulated’ and most of today’s exchange business is built on trust and reputation. Or as some may say…the inmates are running the asylum!

The digital currency ‘exchange provider’ or ‘independent exchange agent’ also functions as a temporary market for the retail public and the digital currency issuers. An agent is responsible for receiving national currency (dollars) from individual users and exchanging those funds for digital currency units deposited into a customer’s online account.

As examples: PayPal acts as their own agent, you send your money directly to PayPal.com. E-gold and Pecunix, do not accept funds directly from customers, they require the use of independent outside exchange providers. These exchange providers are NOT working for or affiliated with the currency issuers, they are completely independent operations.

This business can be both profitable and risky. In 2006, an estimated several billion dollars worth of ‘digital currency to national currency  transactions’ took place and for each dollar that changed hands there was an exchange agent in the middle capturing a fee.

The independent agent has a daily routine of sending and receiving money. Those transfers might include bank wires, money orders, Western Union transfers or even cash. Similar to a check cashing store or a bill paying location, exchange providers are used to handling a variety of payment methods. I might even venture to say this job is a cross between an accountant and a banker. Some might call it a Money Service Business and I think a few agents even voluntarily follow those strict guidelines. However, I don’t believe that it is widely recognized that an exchange provider needs to be an MSB.

The ‘exchange provider’ job carries with it a position of public trust. Without strict licensing or regulation one must be very careful when handling customers’ funds. That is why I was surprised to find that one popular exchange agent, Rocky Spencer from Instant Gold Exchange is also a convicted felon. I was even more shocked to find that his conviction was for felony charges including conspiracy, wire fraud, money laundering and illegally structuring financial transactions to avoid bank reporting laws.

In July of 1994, Rocky was sentenced to seven years in prison for scamming almost $2,000,000 million dollars from the federal government through his tax-preparation firm Dominion Financial Services. Surprisingly, Rocky’s mother, Margaret Spencer and his sister, Teresa Spencer both of whom were involved in the scam were also placed on five years probation and 180 days of home detention.

How is it possible that someone who served prison time for these crimes is operating a money business and handling consumer funds? Shouldn’t this type of criminal history be reported or disclosed somewhere? I would want to know if my bank manager had been in prison for financial related crimes….do customers of Instant Gold Exchange know who they are sending their money to…..??

The InstantGold.net web site shows a plaque linking to the Better Business Bureau Online and they are currently listing his business as a ‘money service’ and they give it their BBB seal of approval:

….this company is a member of the Better Business Bureau, and meets all BBB membership standards.

Description of Product & Services Offered: Internet currency exchange, money services.

BBBOnLine Reliability Participation Confirmed For Instant Gold Exchange, Inc. Instant Gold Exchange, Inc. meets all BBBOnLine Reliability participation and Better Business Bureau membership standards and is authorized to display the BBBOnLine Reliability seal.

It is labeled as a ‘money services’ business, but there is no mention of the previous MONEY LAUNDERING or WIRE FRAUD convictions, hmmmm. Since they are endorsing this online business as meeting their standards, I’m guessing something as minor as money laundering and wire fraud is not considered THAT important to the BBBOnline.[sarcasm] Well that’s the Internet!

Does anyone else find this strange, that a retail money business dealing with consumer funds each day is operated by this convicted felon? Perhaps his customers should know this before risking their hard earned money? Does the Commonwealth of Virginia, the State where his business is operating know?

I also see on the Instant Gold web site, convicted felon Rocky Spencer’s business is an accredited senior member of the of the Global Digital Currency Association, the GDCA. No mention there of any previous money laundering convictions. It would seem that the online world does not set their standards very high.

What is even more disturbing is that in May of 2005, the Securities and Exchange Commission filed litigation naming Rocky Spencer, his mother Margaret Spencer and others as principals in a fraudulent Ponzi investor scam. (Civil Action No. 05-4057-SAC, (United States District Court; District of Kansas; Topeka Division)

…defendants, using the name CEC, are engaged in an ongoing fraudulent Internet-based high yield investment scheme that raised at least $15 million in the last six months, most of which was sent offshore.

Spencer, a convicted felon, controls at least one bank account, held in Marroc’s name, in which more than $5 million of investor funds was deposited. In reality, the CEC’s “international trading program” does not exist, investors are not told about the backgrounds of Spencer and Kringen, and Spencer has misappropriated more than $1.5 million for personal expenses and Ponzi payments. *sec.gov

What does it take to become a US exchange provider for digital currency? Apparently, not much!

“HYIPs have doomed us all”….is the quote from the e-gold list. The digital currency HYIP ponzi schemes are causing grief for legitimate e-gold users. Today Google has taken the bold step to prevent any future Adwords advertising which includes e-gold.

This is the e-mail letter from Google today.

Dear AdWords Advertiser,

We are writing to inform you of a change to Google’s advertising policies that may affect your AdWords account.

In the coming weeks, we will no longer accept AdWords ads that promote e-gold.

Ads and websites are also not accepted for related content which includes, but is not limited to, e-gold exchange, e-gold investment, and e-gold accounts.

When we make this change, Google will suspend all ads identified as being in violation of this policy. If your account is affected by this policy change, please remove any e-gold content from your ad text and website. Current e-gold advertisers are encouraged to instead advertise other products or services that comply with our policies.

As a business, Google must make decisions regarding the advertising that we accept. We apologize for any inconvenience this policy change may cause you.

Sincerely,

The Google AdWords Team

** As noted in our advertising Terms and Conditions, Google may refuse any ads or terminate ad campaigns at any time, for any reason. Please note that the decisions we make concerning advertising in no way affect the search results we deliver. Google offers broad access to content across the web without censoring search results.

——–

e-gold is in my opinion one of the most exciting creations ever thought up for online commerce. I’m sorry to see it getting pulled down by these HYIP crooks. Its about time for a big policy change at e-gold I think. Let’s see some positive mainstream changes so we can all continue to use your great invention for legitimate business. I’ve written about this issue several times before:

HYIP/e-gold ‘Ads by Google’ Facilitate Online Investment Scams

Unlicensed Internet Financial Services?

*as copied from the e-gold list. Thanks to Amr for posting it.

A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns (”profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. This type of scam is named after Charles Ponzi. wikipedia

About a month ago I asked a friend to name one of the more popular HYIPs on the Internet and he responded, “A3Union its a pure ponzi“. Shortly after looking over the A3Union web site, I mentioned it to several other friends and during that chat I called it a ponzi scam. Much to my surprise they said, “Prove it”!

I’m taking a closer look A3Union and some other popular Ponzi Scams I’ve seen in recent years, all of which used digital currency to rake in victim’s money.

From a document on the A3Union web site remarkably labeled an ‘Investment Statement and Prospectus‘ the operators now claim to have taken in over $3 million dollars from ‘investors’ and even more money is coming in each day funneled through e-gold, Pecunix and e-Bullion.

“A3Union Advisors continue to attract new funds under management. These have now passed the $3 million mark (up from $500,000 at December 2006).”

An HYIP can be considered a ‘ponzi’ if it is taking in more money from victims than the business is generating from any day to day operations. The new investors’ money pays off the original investors. Right now, A3Union old members are being paid with new member’s money. If the incoming flow of funds stopped today, no one would be paid essentially from today forward because the business does not generate any income. When the incoming flow of funds slows or stops, this signals the end.

A3Union is a shiny new Internet spin on the old classic 1920’s Ponzi scheme. Here are some other classic ponzi scams that financially raped a few hundred thousand ignorant people over the past few years.

OSGold

Section (1) The OSGold Ponzi went belly up mid 2002

Read more