Talk:Digital gold currency
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[edit] Concerning individual systems...
In regards to RasputinAXP's removal of 'e-grams' from the list, I wholeheartedly support that decision. A virtually unknown, brand new system is nowhere close to being noteworthy. We should continue such a policy on this page.
Oh, and thanks you guys, for doing such great work on these pages, especially with expanding the several that I initially wrote :-)
Search4Lancer
02:05, 10 May 2006 (UTC)
Well, I disagree (and it certainly was NOT spam!), but can live with it either way. Maybe a few months or a year from now when they are not in "beta testing" mode, we can add them back in. What about Loom -- http://loom.cc? I think they are notable enough for inclusion. After all it just says "The DGCs currently in circulation are:", not qualified by needing a certain number of customers. I think *any* DGC is notable for the purposes of this article simply for existing! Novel-Technology 01:12, 11 May 2006 (UTC)
[edit] Gold risk vs foreign currency risk
I'm removing the following sentence
- These risks however are not much different from having a foreign currency bank account
which talks about risks for the gold price; unlike with the overwhelming majority of today's currencies, there is no institution which attempts to keep the purchasing power of gold relatively stable - when the Euro traded in the $.80 - $.85 range, the European Central bank intervened to prevent it falling further.
I believe this does constitute a significant difference.
RandomP 14:03, 2 June 2006 (UTC)
18 months later I have put a similar line back in. Since 2006 we have seen far wilder fluctuations in national currencies against each other than against precious metals. But the issue isn't a better or worse comparison, it is structural. Holding precious metals (as digital currency or otherwise), commodities, or any foreign currency presents an exchange risk if the holder has obligations in his native currency.Cadwallader (talk) 15:26, 30 April 2008 (UTC)
[edit] Mediation
RandomP is currently engaged in Mediation regarding changes to inflation.
Carbonate 06:37, 4 June 2006 (UTC)
== WebMoney ==london rocks and you dont DAKOTA!! WebMoney is not a DGC. Electronic money - yes; digital money backed by gold - no. I deleted the reference from the table of DGC providers. nirvana2013 14:42, 9 February 2007 (UTC)
[edit] Exchange Risk & Purchasing Power
I contest 66.133.253.15's edit in which the unsupported claim was added:
Since gold has historically been the refuge of choice in times of inflation or economic hardship, the purchasing power of gold becomes stronger during times of negative sentiment in the markets. Due to this speculative interference, there are times when purchasing power has also declined. In 2007-2008, gold volatility has closely tracked the recent run-up in oil prices.
Please supply graphs, charts, or other citations that prove your claim. I think your claim is in error because, during times of negative sentiment in the markets gold's purchasing power only increases relative to securities. During bear markets in securities, there are generally bull markets in commodities, so that gold's purchasing power remains relatively stable compared to food, fuel, metals and minerals.
You could easily support your claim by providing a chart of the number of ounces of gold required to buy gold, oil, and wheat over the past 100 years along with a chart of the securities markets.
Here is a reference to an article by Adam Hamilton on the gold/oil ratio which has some charts[1]. While the gold/oil ratio (which shows the purchasing power of gold) has fluctuated as all things do, the fluctuation is not strongly linked to securities markets as you have stated.
For example, from 2000 - 2003 there was a bear market in securities, yet the purchasing power of gold against crude oil fell during that time.
My statement (that you deleted) was that the purchasing power of gold against the basic commodities required to live has remained stable over long periods of time. For the past century the average gold/oil ratio has been 15.2 barrels of crude oil to buy one ounce of gold. The deviation around that average has never been higher than double, or lower than 40% the average. So though there is fluctuation, there is nothing like the exchange risk that one sees with national currencies, like the Argentine Peso, that lost 100% of its value in a short amount of time earlier this decade.
Please revert your change. If it is unattended to I will revert it myself. Thank you. Cadwallader (talk) 19:47, 29 April 2008 (UTC)
