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.
Gold Currencies and How to Use Them
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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’.