Using Gold Money

As with e-gold you have a menu of items which, in this case are presented down the left side.
Using GoldMoney is so simple we don’t need to go through the screens. By going to
http://goldmoney.com/en/how-it-works.php you can easily see how to operate the account. These
are easy instructions to follow with a step by step guide on buying, selling, getting your holding
statement and much more.
The same principles apply as with e-gold. You select from the menu the activity you wish to
perform and then when the screen comes up you follow the directions exactly.
Logging out of Gold Money is as simple as clicking the Blue Logout button top right of the
screen.
Now to be paid in gold money by another you simply give then your GoldMoney account number
which will have been sent to you by email. Of course you do not give them your Passphase.
It is as simple as that.
Let’s now look at Pecunix.
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Gold Currencies and How to Use Them
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Pecunix
Pecunix is somewhat different but follows the same basic rules. Select the button to open an
account and fill out your details in the application form. And you will have a Pecunix Account.
The logging in is different again with Pecunix and also very security conscious. First let’s look at
opening a Pecunix Account.
Here is a screen shot of the Pecunix home page at http://pecunix.com/
You can clearly see at the bottom left where to Open a Pecunix account. click that button.
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From here you can ‘take a tutorial’, a recommended move. And you can also click the Next Step
button to start the steps to open your Pecunix account.
The following is the User Agreement which you will have to accept in order to continue.
Having accepted that you then go onto the 2nd step of your application. Here you fill out your
password and an email address as I have done below.
One more step to go!
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Here you complete filling in your details and then you select the number from the row at the
bottom that corresponds to the number in the blue square to the left and you will be almost there!
The last screen to fill in and you then select with your mouse the number in the row at the bottom
of your screen to correspond with the blue number in the square to your left of that row.
And your account is created!
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Now, as with e-gold and GoldMoney, you check your email for your account details which will
look something like this:
Congratulations, you have successfully created your new Pecunix account.
_THIS E-MAIL CONTAINS SENSITIVE INFORMATION, PLEASE KEEP IT SAFE_
Your e-mail address goldcentury@telstra.com is your "account number". Give
this e-mail address to people who wish to pay you with Pecunix.
Here is the PIN number you use to access your Pecunix account. You
should keep this PIN number a secret.
Entry PIN: XXXX
Your PIN and your password can be changed at any time by logging in
to your Pecunix account and clicking on the "Account Details" menu.
There is no need to reply to this message. Simply use the PIN and your
password to log in to the Pecunix website to view your account. If you
had received a payment it will be added to your account balance when you
log in for the first time.
_IMPORTANT SECURITY INFORMATION FOLLOWS, PLEASE READ_
Your password and PIN are valuable secret account access codes and you
should never share them with anyone else. Pecunix will never ask for
your password or PIN. You are responsible to keep them secret and safe.
We recommend that you get a good password safe for your computer
passwords. We highly recommend passwordSafe which is available for free
download at http://passwordsafe.sourceforge.net
All communication from Pecunix will be signed with the Pecunix PGP key.
PGP is a powerful free encryption tool that can greatly enhance your
security and privacy. We recommend that you learn how to use PGP with
Pecunix. You can download a free copy of PGP from
http://www.pgp.com/downloads/freeware/
Gold Currencies and How to Use Them
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Here is your initial Pecunix login screen. This is where you first put your password and then
instead of typing or copy/pasting your 4 digit PIN you simply select from the numbers in the row
in the middle.
Then, again, select a number from the bottom row that corresponds with the number in the blue
square.
Here is where there is a marked difference between e-gold and GoldMoney. The log in process is
going to be quite different and a little more complex. You will need to ensure you understand the
process and do NOT lose your log in information.
This is the screen which will come up when you have entered your log in information.
You will need to write down or make a copy of the Private Identification Keys. They are your
only means of entry into your account and to actually make a payment from the account. Pecunix
is perhaps one of the most secure systems around.
Once you have made a record of them you tick the Saved your PIKs box and then click Continue.
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You will be presented with the following screen which is your account screen:
As you can see it will be a balance of zero since you have not funded the account yet. The Menu
on the left enables to you to perform the usual functions as making a payment, getting your
account history, changing your details etc. This is a good time to explore what Pecunix has to
offer. Many merchants use Pecunix as a payments system just as they do with e-gold and
GoldMoney. All sites in addition have lists of some merchants that use their system. To fund the
account click Fund/Cashout in the menu.
This will take you through a screen to another screen which lists exchange providers who deal in
Pecunix.
The use of Pecunix is relatively easy. Although the login is a little more complex than the others,
Pecunix is one of the safest systems around and worth the extra effort.

GoldMoney

GoldMoney operates somewhat differently and much simpler. We will go step by step through
the sequence to open an account with Gold Money. However the actual usage is very simple and
graphically explained on the web site. The following page gives a detailed outline of how to use
your GoldMoney account http://goldmoney.com/en/how-it-works.php
Here is the home screen of GoldMoney at http://goldmoney.com
You can open a new account here and log in to an existing account. Lets open a new account.
Select the blue Free Signup button. You will be presented with an application form to open a new
Holding Account like this.
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Then you fill out your details as I have done below. Fill out your details in the form also.
Once you have filled out your details and agreed to the User Agreement, select the Blue Open
Your Free Holding Account button.
You will be immediately logged in. In addition, like e-gold, Gold Money will send you an email
with your log in details and you will then see the following screen.
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This is your account screen. From here you can navigate to other areas of your account such as
your holding balance or statement, change your Passphase (recommended), buy and sell
GoldMoney and other activities.
Ensure you keep those details sent to you in your email safe as that is your log in and without
those details you will be unable to log in and retrieve your holding. Note that GoldMoney is dealt
in grams not dollars or currency measurements, so you will need buy and sell in grams. There is
a link on the buy and sell pages to find out how much grams or ounces you need to transact for a
specific dollar value.
Explore and read through the site which is very comprehensive and explains how to transact and
deal in GoldMoney in great detail.
You can log out using the blue logout button in the top right corner. Always log out when you
have finished using the account. Do not just close the browser!
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Operating an e-gold account

To operate your account go to: https://www.e-gold.com/acct/login.html which should be in your
Bookmarks or Favorites in your browser.
In here type in your new account number, You can either type in your Passphase (not
recommended), copy and paste it from another doc or use the SRK system:
To use the SRK system simply select the SRK icon and a pop up box will appear. Instead of
typing in your Passphase you simply select the characters in the pop up box and the system inserts
your Passphase for you. This is a secure method of preventing anyone from picking up your
Passphase or password from your keystrokes.
Then select the login button and you will be presented with your Information/Configuration
screen:
If you login from a different computer you may get this screen:
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You will then need to get the pin number sent to you by e-gold to your designated email address
and enter it in the field provided.
The e-mail will have the following information:
PIN: 262-904
Acct: 1990779
Expires: 3/20/2005 2:58:00 AM GMT
IP: xxx.xxx.xxx.xxx
--
Explanation:
The security settings on e-gold account 1990779 require new PIN entry
when a change in computer and/or location is detected.
If you did not attempt to login to e-gold account 1990779 at
3/20/2005 2:43:00 AM GMT, this suggests that somebody besides you knows the
passphrase to your e-gold account due to poor security practices on
your part! In that case you should immediately take the following
steps in the following order:
1. Login to your e-gold account
If the one-time PIN is still active (see above), your successful
login will deactivate it.
2. Change the passphrase on your e-gold account
Use e-gold's Secure Randomized Keypad (SRK) in case your computer is
infected with a keystroke logger or virus.
3. Read and implement the security recommendations published on the
e-gold website.
Don't put this step off, or you risk compromising your new passphrase
as well!
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You will then be taken to your account. The reason for this is to protect your account from
unauthorised access from another computer. More on this in the security chapter.
Information/Configuration
Is the first screen you see when you login. This contains information regarding how you access
your account and from what computer or IP address. Unless you are familiar with this type of
activity it is suggested you make no changes until you have become familiar with the
configuration, what and when changes should be made. Sufficient to know that with the current
settings you will be able to login to your account from the same computer each time, The PIN
request will only apply if you log in from another computer.
MENU
At the top of every screen within your account you will see a menu. From this menu you can log
out or go to any area of your account:
Let’s check the Balance of our account shall we? Just click on Balance and the following will
come up.

How to open and use gold currencies

Here are some practical instructions on how to open and operate gold currencies. Each currency
is different so we will take one at a time and I have included some screen shots to guide you step
by step and help you on your way.
The accounts featured will be in order:
e-gold
GoldMoney
Pecunix
And 1mdc.
1mdc is not a separate currency issuer in fact but a separate account within e-gold which one can
use as a safe area to store gold for a length of time. Specific details will be provided about 1mdc
when we come to use it.
As the oldest and probably the most popular, we will start with e-gold.
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e-gold
Here is the first page you see when you go to http://www.e-gold.com
From this screen you select Create Account from the menu on the left which will bring
you to the following screen.
Read the Terms & Conditions then select the I AGREE button. You will then be presented with
the New e-gold™ Account Creation Form on the next page.
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This is the first section of the application form. Scrolling down you will see the balance of the
form to be filled in.
This is the last part of the form.
All sections need to be completed with your details by following the instructions as designated on
the screen.
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Your application should then look something like this but with your personal details:
Second screen:
And third screen:
You then select the Open button and wait.
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You will then see the following screen:
Go to your email account and there should be an email address with your new e-gold account
Number as shown below. Ensure you read and understand the instructions contained in the email.
The next section will show you how to operate your e-gold account.
Date: Saturday, March 19, 2005 5:52 PM
From: NewAccountRobot_donotreply@e-gold.com To: goldcentury@telstra.com
Subject: Welcome new e-gold user!
Your new e-gold account number is:
1990779
Click on "Access your Account" at the e-gold site to login and begin using
your e-gold account. The e-gold site is at:
http://www.e-gold.com
--------------------------------------------------
* * * Read/Save/Print this email message * * *
--------------------------------------------------
Important information about your e-gold account:
- It's OK to tell others your e-gold account number!
Other e-gold Users need your e-gold account number in order to Spend
e-gold to you. So don't hesitate to display it on your web page,
your business cards, or your e-mail signature file.
- However, *DO NOT* reveal your passphrase to others!!!
Anybody with knowledge of both your e-gold account number and your e-gold
passphrase has complete access to your e-gold account; therefore, do not
reveal your e-gold account passphrase to others. *NEVER* enter your
passphrase on any website other than the www.e-gold.com web site.
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Other eCurrencies

eCurrencies seem to come and go. Currently there are systems such as PayPal, NetPay,
WebMoney and EZCMoney to name just a few. Doubtless there are many others and who knows
what the future holds. The purpose of each is the same of course. To provide a secure efficient
speedy method of transporting value from one person or business to another. Some do it better
than others do. Some don’t.
Many merchants accept eCurrencies as well as the traditional transactional mediums. Some of
these are good in that they may offer a sort of guarantee in the case of fraud. Not all do however
and one should study the terms and condition of those he or she proposes to accept. Bear in mind
it is a form of third party payment and as such subject to the same fraudulent problems as third
party cheques. PayPal, for example, tends to hold the merchant responsible for fraudulent funds
going through its accounts and has a track record of freezing merchant’s accounts without notice,
tying up the merchant’s PayPal account and the funds in it. Then extracting the funds they
consider fraudulently obtained. This can happen well after the event and the ‘customer’ has long
gone. The merchant has little come back in this situation. An exchange provider recently ran a
pilot using PayPal for a while and found that during that time 50% of the orders he received were
fraudulent. So be wary of using third party arrangements. I do not say don’t use them. Just be
aware of what is involved and the potential risks
Some years back the New York Times ran a story on Flooz.com, a past purveyor of online
currency using electronic gift certificates (the company is now defunct). They had come to a dead
stop apparently due to being defrauded of about $300,000 US dollars from scammers in Eastern
Europe and Russia who have a stolen credit card fraud system well set up and operating. To show
how large this operating was the company sold $25 million USD dollars of Flooz currency in
2000. There have, over the years, been a number of proposed alternatives to online credit card
transactions some of which have, like Flooz, fallen by the way side and some have achieved a
modicum of success.
Such systems, like any other, invite the criminals who see it as an excellent way to whitewash
their ill-gotten gains and it is quite likely used as such on occasion. However that applies to all
types of transactions and some of the biggest banks in the world have been embarrassed to find
themselves ‘doing the laundry’ so to speak.

Why use gold currencies?

Bank transfers, especially between different countries, can be expensive. Many digital currencies
have come and gone. Some with the best of intentions, some with not so good intentions at all.
Basically the idea is to transfer funds or value of some sort for good or services rendered or
expected.
Traditionally this was done through banks credit cards, letters of credit and such systems as
Western Union for example. With the advent of the internet and the speed and advances in
communications digital currencies came into the fore. Currently millions of dollars are transacted
each day through digital currencies. Such companies as PayPal, NetPay, Web Money, Paymate
and many others all vie for your few cents to complete a transaction.
As useful as these apparently are there is an inherent risk with their
use as none of these have any measure of guarantee and if the
company fails or, worst, was set up as a scam, then any funds in the
accounts are usually lost. Standard Reserve was such a company that
failed with a director taking with him thousands of dollars still
unrecovered after some years. OSGold, set up as a scam, as it was
later revealed, cost thousands of people millions of dollars. PayPal,
although, now having over 50 million customers, still applies strict
rules that, if broken, can cost a merchant thousands in tied up funds
frozen for an indeterminate amount of time.
What about the currency issuers, such as e-gold for example, you might ask?
Gold Currencies are different. The currency supplier does NOT own the gold and is only the
custodian. They simply administer the change of ownership and records of the accounts and
invariably employ an accounting firm to verify the gold deposits and do audits. And take a slice of
gold for doing so in transaction and/or storage fees
Here are 5 good reasons for owning gold:
• INDEPENDENCE. The security offered by gold is provided by its very independence.
Gold is independent of states, currencies, productivity and credit worthiness. Some
economic or political influences may affect the price of gold, but its value and its
acceptability remain independent of them.
• RESERVE ASSET. Many experts advise private investors to hold between 5 and 10% of
their wealth, in the long term in precious metals. Experience has shown that the regular
purchase of gold coins helps to protect the smaller investor against price fluctuations.
• SECURITY. Gold has always been prized as precious and valuable. Over the years gold
has proven itself to be one of the most reliable stores of value.
• STABILITY. Despite possible price fluctuations on the open market, the value of gold
has remained remarkably stable and has shown repeatedly the tendency to rise.
• LIQUIDITY. Gold is traded around the globe 24 hours a day. With gold you possess an
international currency which can always be sold around the world at any time.
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So with a gold account you actually have something substantial rather than just a paper record of
funds. In the event of any economic ‘disturbance in the force’ where currency gets devalued and
digital currency companies may be subject to various pressures, economic crises and currency
fluctuations, your gold, safely tucked away in a bank vault, usually can be counted upon to hold
its own. In any economic crisis, such as a recession, depression, war or any other highly
disturbing influence, gold continues to maintain its value and even sometime increases.
As a transactional medium for merchants it has additional advantages.
• The merchant gets his money up front. No waiting for the funds to be transferred. The
transfer of gold in this instance is instantaneous.
• There is no chargeback for the merchant. Once that gold is in his account it cannot be forcibly
extracted.
• The cost is considerably cheaper. There are no running costs involved. Just a nominal storage
fee and small spend fee of no more than 50 cents and usually less.
This is truly a ‘house’ built of gold … and gives new meaning to the term, ‘Safe as houses’.