Forum Archive Index - February 2004

["Baa Baa" <baa_baa@hotmail.com>]

Russell,

There's not a whole lot of money/profit in margin on bullion sales + assay 
and fabrication + storage costs, so, there has to be another 'angle'.

I believe that the real money is made in leasing out the investors gold ... 
physically whether it exists or not, because a certificate says it exists, 
therefore it does, and that can be on-leveraged for profit. It would be 
prudent also to hedge forward buying and selling. This way new gold can be 
aquired or sold at predetermined prices. Potentially, if the contract did 
not have to be exercised but was in the money, then the contract itself can 
be traded for profit.

I'd like to see the fine print about what the online and others obligations 
are re collateralised re-investment, leasing, and derivatives.

The above is all completely aside from my previous comments related to trust 
in whether the gold actually exists in storage and whether it can be 
retrieved to ones person at anytime one chooses.

Rgds
BAA

>From: "Russell" <allanrussell90@hotmail.com>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] Goldmoney website
>Date: Sun, 1 Feb 2004 19:59:08 +1300
>
>Baa Baa,
>I think you are very wise, we had a scam in new zealand a while ago,
>identical to a previous californian scam, where you "brought" gold paid for
>its storage, and insurance, but guess what at the end of the day when
>everyone wanted their gold, it dident exist.
>I feel its a good high proffit bussiness being in, being paid to store and
>insure nothing.
>Where are all those fools and their money when I need them?
>Allan.
>----- Original Message -----
>From: "Baa Baa" <baa_baa@hotmail.com>
>To: <sharechat@sharechat.co.nz>
>Sent: Thursday, January 29, 2004 11:34 PM
>Subject: Re: [sharechat] Goldmoney website
>
>
> > Robin,
> >
> > That's an interesting stat. In context with my other posts on the 
>subject
> > the basis for me is simple. No one looks after my gold but me. Its a
> > perspective I don't like to complicate with liquidity, its about trust,
> > although partly a lack of trust, it's mainly about having fewer
> > counterparties to have to trust. I always know where my gold is and I 
>can
> > reassure myself by looking at it, holding it.
> >
> > If people are happy with someone else looking after their gold then 
>that's
> > their business.
> >
> > rgds
> > BAA
> >
> >
> >
> > -----------------
> > BAA - assume you know all about e-gold.com ?
> >
> > I was speaking to one of the founders of e-gold a while back and,
> > apparently, New Zealanders are (proportionally) over-represented in
> > terms of e-gold activity,
> >
> > Regards
> >
> > Robin
> >
> > On 28 Jan 2004, at 10:28, Baa Baa wrote:
> >
> > >Chris,
> > >
> > >Although I like the presmise behind e-transations underpinned in gold,
>I'd
> > >have to say that 1. I don't use it, and 2. I suspect few do either. 
>It's
>so
> > >-contradictory- imo. Electronic transfer of an 'entry' in an 
>'electronic
> > >database' which is -supposedly- linked to a physical -gold- deposit is,
> > >imo, strange bedfellows, at this point in time. Firstly, gold is a
>physical
> > >thing, tangible, real, intrinsic, basic. But, e-transactions are a
> > >-mechanism- to make some funds transfer, reliant on the e-regime, and
> > >e-availabiliy (of computer/network systems) to effect the transfer. The
>two
> > >don't gel imo, yet. I only own gold (and sludge) as insurance, even
> > >although my % exceeds common guidelines, so, I can't reconcile the 
>notion
> > >as yet why I would move to underpin my e-transactions in a metal when 
>the
> > >-mechanism- itself is inherently risky BUT the underlying asset is not.
> > >Frankly, there's no need to. We can prepare ourselves through 
>separatist
> > >investment in intrinsic value while maintaiing participation in daily
> > >transactions which leverage advanced technologies. Personally, I don't
>see
> > >a compelling need yet to blend the two. It may come, but until my
>employers
> > >pay me in metals, I'll be happy to daily use e-banking, Paypal, e-Bill,
> > >Billpay, ... or whatever, before I present my metal as liquidity for a
> > >day-to-day transaction.
> > >
> > >Did any of this make sense?
> > >BAA
> >
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