The economic crisis of 2008 and continuous, is focusing a growing number of on precisely what financial experts call “tough cash” (precious metals) as a method of wealth defense. That the US dollar is on a downward course indicates alternative digital gold currency is getting a lot more attention.
So, if you choose to buy a digital gold currency, are you likely to lose your money? This is a good question since owning gold by doing this is entirely dependent on the financial health of the company involved. The stability of the individuals engaged in the company is probably the key to success. Having been involved with the digital gold industry from the early days as an investor, here is what I have discovered.
Gold currencies are a relatively brand-new type of investing, the increase of them entirely paralleling the growth and development of the web. E-gold is thought about the “grandaddy” of these companies, but just being around considering that 1996 shows how rapidly developing the market is. This company was extremely popular with the online high yield investment program (HYIP) individuals, which eventually caused its decline. This was due to some rather suspicious characters involved with HYIP’s that caught the attention of the United States authorities concerning cash laundering and tax evasion. Domiciled in the overseas island of Nevis, E-gold was efficiently ranged from the United States by the well respected Douglas Jackson, a reputable pioneer of the market. Sadly the absence of “Know Your Customer” controls on the owners of these accounts resulted in the US authorities clamping down on the company pending tighter account compliance.
Surprisingly, any money that you have in e-gold will have increased in worth due to the quick rise in the gold price. Keep in mind, with these accounts you own gold rather than dollars.
The interesting point is that if E-gold were not based in the USA, it would most likely be flourishing and be at the leading edge of the digital gold industry still. For Douglas Jackson, the founder, being accused and the hazard of a criminal conviction for “money laundering” in the United States sufficed for him to fold to the pressure and comply.
Safety in a digital gold currency account depends on a variety of aspects. Being based in the US does not indicate that it will survive and succeed. A comparable report to E-gold called C-gold based in Malaysia appears to be prospering, with great auditing of the gold owned simple to see on the site. The stability of its owners stays to be seen, as it is brand-new, but they are off to a great start.
The diversity of gold digital currency accounts that you mean to own is necessary.
Digital gold currency is lastly getting into the mainstream of investor attention, mainly due to the interest in gold and silver as investments on their own. Remember, with these accounts you own gold rather than dollars. Remarkably, the reality that the gold backing your account is safe and secure in Switzerland or other overseas centers does not seem to be a problem.
Security in a digital gold currency account depends on some factors. An extremely comparable report to E-gold called C-gold based in Malaysia seems to be thriving, with very great auditing of the gold owned simple to see on the site.