Transparency & The e-gold Ltd. Audit, A Global E-commerce Innovation
About a month ago, e-gold Ltd. released an audit report detailing their exact amounts of precious metal stored in London and Dubai. The important information to note in this report is that every digital unit of e-metal circulating on the Internet including e-silver, e-platinum and e-palladium is 100% backed up by that amount value of precious metal in secure vaults.
This is enlightening to understand and here is why…
If tomorrow, every e-metal account holder decided to sell his or her digital currency, there is a corresponding amount of actual precious metal available to immediately liquidate and ensure those digital dollars quickly and easily convert into national currency.
A document called the e-gold Bullion Reserve Special Purpose Trust, guarantees at all times that there is physical metal backing the digital units. Here is a slice of that Trust Agreement:
PURPOSES OF THE TRUST
purpose of holding precious metal bullion on behalf of and for the exclusive benefit of all e-metal account holders collectively, pursuant to the e-gold, e-silver, e-platinum, and e-palladium currency contracts, all of which explicitly require 100% physical reserves backing all e-metal in circulation. The physical assets shall be held in allocated storage by secure third party repositories with each individual bullion bar uniquely and explicitly identified and catalogued. All precious metal shall be held free and clear of all liens and encumbrances whatsoever. The safekeeping arrangements with secure repositories shall require dual signature (i.e., authorization by both e-gold Ltd. and by the designated third party contracted to serve as Escrow Agent) before any bullion may be removed for any purpose;
In their report the independent auditing firm also details, over about a dozen pages, the actual precious metal bar numbers, their purity and issuer. If this was not enough, a quick visit to the e-gold web site ‘Examiner‘ page again shows how much precious metal is on hand at any time and their ‘Stats’ page shows all transactions and account balances for the previous 24 hour period!
It no secret how much precious metal e-gold Ltd. has in circulation. Its no mystery as to where its held. The exact weight of all bullion is recorded, audited and displayed at all times along with the entire activity for all accounts. That is pretty amazing for any financial company to openly disclose each day. I’ll give you a buffalo nickel if you can show me any other financial company on the Net that even comes close to this type of disclosure.
This practice is known as ‘being transparent’. Transparency means disclosing to the world all available assets and at all times guaranteeing that the digital currency, which so easily zaps around the globe, never gets issued without 100% backing. This financial transparency is very rare to find on the world today except in publicly traded companies. Virtually no one, volunteers these item and especially take the time and effort to update them daily for users and visitors to view.
e-gold Ltd. offers an extreme level of confidence & security for its account holders and that’s a reason why I consider today’s e-gold Ltd. to be one of the world’s greatest e-commerce innovations.
This article is pure rhetoric. It is as ‘transparent’ as the claimed auditing and bookkeeping itself. You prove nothing with this article except that e-words, phrases, sentences, etc. are just that – e-claims. They prove nothing. I can write anything I want on the net but it doesn’t mean it has credence just because it appeared in print as one mans say so. I am actually astounded that you would put forth such a juvenille claim, backed by nothing but claim, to an intelligent public. One is forced also to wonder the motive beind such a piece. The only way to know for sure that there is, indeed, sufficient precious metals backing all the various electronic claims to gold ownership being sold to an unsuspecting and blindly trusting public today is to have them all lay claim to personal possession at the same time. (Personally I doubt everyone would get their metals and I know many others suspect the same. The historical tonnage mined does NOT equal the current tonnage claimed owned globally. Something IS amiss.) Then, and only then, will it be known for sure either way if there is a huge scam being perpetrated on e-gold ‘holders’ or not. The very fact that it was deemed necessary by someone to print this very type of piece gives this man cause to wonder, indeed, its very timing makes one suspect. Now I wonder if there will be enough transparency here to publish my opinion. We wouldn’t want the ‘masses’ to start thinking deeply, would we.
Sincerely,
L. Z.
Dear L.Z.,
Of course I’ll publish your comments. Its not a bad question, “Is e-gold Ltd. falsifying all their financial data ?”
I’m just not sure how to answer it, are you asking if the Auditor, is a phony, or the numbers they publish are fakes?
Are you saying the bar count and serial numbers from their examiner page are all made up?
Are you telling us that even with the US government’s close supervision at this time, e-gold Ltd is trying to con its declining market share of users?
Hmmmm, I find all of these a bit hard to believe, but hey anything is possible I suppose, let’s check it out with a bit of closer investigation, OK?
If you can be more specific, I’d be happy to track down some info, facts or contact items for you and other readers. Just let us know exactly what you are claiming is phony so I can check it out too! Thanks for your comments, I look forward to hearing from you soon.
Mark
As far as I know, when the USGov indictement against e-gold was made public, there was a huge rush to redeem the gold supposedly in the coffers. And again, as far as I know, e-gold was able to meet the redemptions without any problems. I think it was in the order of half a tonne of the metal or more. Take that for what it’s worth.
Most of the gold is stored at Brinks. Their inventory service is the most secure in the world.
Faking that would require a major conspiracy involving auditors, the IRS and the SEC.
Even if this was somehow managed, the Arabs in Dubai would probably make a fuss.
Just tell people what the dang transparency of gold!