What Is Digital Gold Currency?

September 19, 2006 | By | 4 Replies More

NewsIn this age of global on line business, a fast, efficient, secure and cost effective flow of money around the world has been developed to oil the wheels of commerce on the web.

Digital Gold Currency meets this demand by conducting worldwide transactions, irrespective of currencies, in gold simply by transferring the market value of gold by weight from buyer to seller.

The gold is not physically moved as it is stored as bullion in repositories certified by the London Bullion Market Association (LBMA).

The bullion bars are held as `certified good delivery bars` and held free of all liens, encumbrances of any sort and explicitly not allowed to be attached to any liabilities of any party.

This last applies to all recognised Digital Gold Currency providers.

Gold may not be physically moved or distributed in any way without the Gold Currency provider and an unrelated third party Escrow Agents` written authority.

This means that the Gold, on deposit to underwrite these transactions, is about as safe from misappropriation as it is possible to get.

To Sum up

All gold electronic currency issued by authorised dealers is 100% backed by certified gold bullion bars in certified repositories.

How does it work?

Whatever is spent is accounted for by the weight of gold and not by any currency unit.

The price of gold can be considered constant at any given time by whatever currency it is valued against.

The weight of gold and measurements and definitions of its’ purity are internationally recognised.

For millennia gold has, and continues to be, the ultimate store of value and has been, and still is, used as money and to underwrite currencies.

Electronic gold payment systems can be exercised in up to eight major currencies and as time passes transactions involving added national currencies will undoubtedly grow.

Electronic Gold transfer makes it possible to spend (troy) ounces and /or grams of gold, or spend an amount of gold by value in US$, GB Pounds or Euros etc.

This allows for transactions to easily and instantly take place worldwide for goods and services charged in the exact weight of gold without incurring currency exchange charges and related possible delays.

Digital Gold Currency may be spent with any other account holder with a Digital Gold Currency provider any where in the world.

Is it for me?

This is a new development and will take a while to catch on but sooner or later it is expected to be the leading system for international payments.

There are no limitations on the size of the account, all are welcome.

Digital Gold Currency account holders enjoy similar benefits as any other on line banking account, it is as easy to withdraw and transfer funds, manage the account, make online payments, etc.

The principle difference is that your account is not denominated in a currency but in gold.

An important further difference to consider is that the value of your account will fluctuate with the price of gold.

International transactions, however, will not be affected by currency exchange rate fluctuations whereas the purchasing power of DGCs may increase or diminish solely dependent upon the price of Gold ruling at the time of the transaction.

The worldwide locations of the parties involved in the transaction will have no bearing on the cost of the transaction.

The Digital Gold Currency account will show the account balance in weight of gold, i.e. 18 ounces (troy) 8 grams and is not denoted in a currency.

Under present legislation there are no required national or international financial regulations imposed upon Digital Gold Providers.

  • They are self regulated.
  • As DGC providers are not banks they do not have to comply with banking regulations.
  • The costs of transactions are competitive with traditional payment methods.

Potential account holders should satisfy themselves with the extent of reporting and prevention of money laundering and other requirements imposed by their choice of provider.

The Global Digital Currency Association acts as a regulator, without powers, on behalf of providers, merchants and users by keeping an eye on the interests of users.

Some Digital Currency providers can also offer accounts in Silver, Platinum and Palladium.

Summary

This is a new and exciting development in world wide online business.

With worldwide inflation looming its’ ugly head and with gold as the traditional hedge against devaluing the declining values of currencies, DGCs are worth investigating.

The ease, speed, cost of trading and lack of administrative restrictions and the possible tax implications of DGCs are expected to become attractive to many throughout the world.

Clearly the benefits or otherwise of DGCs are dependent upon the outlook for gold, currently in a bull market, but that can change.

I will be looking to transfer some limited funds into a provider as an expedient way of paying for on line purchases and another possibility to hedge against the GBP and US$ tanking against other currencies.

This is not a recommendation and should not be inferred as one.

It is just my personal opinion and my own wish to encourage and respect innovative thinking in the financial market place.

Some Digital Gold Currency Account providers:-

Have a look at their websites to get more detailed information.

As usual please do your own research, be very wary of recommendations and tipsters and remember we are an information site only.

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  1. bralin says:

    this is a ridiculous scam. you can’t get something from nothing.

    granted, america is built on the principle of credit… look at where it has gotten us!

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