From their site: http://www.e-gold.com/letter3.html

This does, however, create an interesting arbitrage opportunity which we have been taking advantage of. The normal market rate for an e-gold OutExchange (converting one of our customer's e-gold to wire transfer or Western Union) is 3-5% plus processing fees.

The general panic surrounding this announcement has enabled us to adjust this rate to 8% + $50.00, plus processing fees and still attract substantial business.

Certainly there is risk involved but it should be kept in mind that all of the gold bullion backing e-gold is kept offshore and that in a worst case scenario the company would fall into receivership with assets fully backed.

The main issue right now is maintaining consumer confidence which we and a couple of others are doing by maintaining unrestricted In/OutExchange services. I would like to call on others who are interested in accepting risk for an arbitrage opportunity to launch similar operations or to get in touch with me to see where there may be partnership opportunities.

Very interisting statement/news.

Sooner or later, E-gold fanatics may realize that E-gold is not an offshore company.

It is just a haven for pyramid schemes. You know, the people who say their pyramid is not a pyramid and everyone will get rich. These are the same who say E-gold is bullet proof, etc. Not so. Never has been so.

This does, however, create an interesting arbitrage opportunity which we have been taking advantage of. The normal market rate for an e-gold OutExchange (converting one of our customer's e-gold to wire transfer or Western Union) is 3-5% plus processing fees.

The general panic surrounding this announcement has enabled us to adjust this rate to 8% + $50.00, plus processing fees and still attract substantial business.


Over the last 2 weeks we've seen a significant jump in the number of people paying for domains and hosting by egold, presumably in an effort to "use it up" just in case.

At the moment we're not too worried about the future of the e-ccy, its been round this loop a few times now, but from a business point-of-view, may have to start limiting our exposure.

So are you actively "playing" the egold exchange market Jeff ?

Yes, I am. At first I was concerned that a lack of companies doing so would create a tremendous strain on our operations but that seems to have leveled off into a nice comfortable stream of business :)

interesting...

I also noticed that payments with e-gold are getting more and more since May. People are trying to get rid of the e-gold coz its future is not clear. e-currency exchangers will charge you 20% to 50% to buy your e-gold! It was 2% to 3% in the past.