Gold since its discovery is not like any other metals such as iron, lead or copper. It’s rarer and it has a little practical uses. So, what makes it so special? It is the world de facto currency, the standard for trading and bartering. It is the most loved metal by man. They use it as the most valued ornaments and they make their prizes and symbols from gold. It has been in every language as synonymous for great value, wealth and power.
Lately, after the huge development in Information Technology and Communications, a new form of gold has emerged, E-gold.
This new “gold”, how can we describe it? It’s a little bit different than paper gold, although they have so much in common. Both are not real gold, they are promises of delivering gold in exchange for a predetermined amount of money. So, basically, both are just numbers on an online platform or paper certificates of you owning gold.
But some e-gold (Forex) doesn’t include the delivery thing. You are not expected to ask for the physical gold delivery. Another thing is that the e-gold depends almost entirely on the internet and communication system.
I can’t see any differences between e-gold and any e-currency, Silkroad Online virtual currency Silk, Facebook Credits and Hi5 Coins for example or any other online virtual currency if it doesn’t include gold delivery.
Even if there is a promise of gold delivery, they may not happen. One of European Banks, ABN Amro, refused to settle gold bullion contracts with physical gold, and the bank offered only fiat money. As if the bank forgot that their clients bought gold in the first place because they don’t trust paper money.
On the other hand, gold coins and jewelry, if you have any, can be sold in a matter of hours. Just do your homework and spot the best deal. Pawnshops, local jewelry stores in the high-street, even some neighbors would buy it in a matter of minutes. You can store your gold safe and sound, with your own hands.
Remember that either way, if you have e-gold, physical gold, or even any amount of money, you can’t eat it. People in time of emergencies and crisis trade their gold watches with cigarettes and few gallons of fuel. But what can be more widely accepted and have the best stable value? The answer has been always the shiny-old-gold, not the transaction you make to a virtual entity overseas.