June KPI

79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
edited July 2016 in About Goldmoney


This will be the last monthly key performance indicator figure reported, as going forward, management will move to quarterly reporting.


  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    Here is my analysis. Hope you find it useful to your understanding of the Company.

  • ngiyusngiyus Posts: 35 Tin ✭
    good news for investor
  • GoldIsCurrencyGoldIsCurrency Posts: 1,812 Gold ✭✭✭✭✭
    edited July 2016
    @GrandpaBrian A good read as always. Thanks. Just as an fyi, your December 2016 forecast may be somewhat reserved depending how the rest of the year plays out for Silver. I wasn't aware myself till yesterday that Goldmoney Wealth has such a large amount of silver for clients.

  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    That certainly is an Ag-ressive position in silver
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    edited July 2016
    @GrandpaBrian said, "Feedback from the platform indicates that customers spend more of their gold as gold prices go up and buy more gold when gold prices go down. It would seem that Gresham’s Law does not hold sway here."

    From Wikipedia:
    In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will disappear from circulation.

    But gold is not a commodity money (much as we all wish it were), fiat is the commodity money. Not one accepts physical gold in payment … yet.

    "Customers spend more of their gold as gold prices go up and buy more gold when gold prices go down", suggests to me that even BitGold Goldmoney Personal account holders are still treating gold like a commodity (or stock). That is "buy low / sell high".

    Discussion is welcomed. o:)
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    @79Au197 I strongly believe Goldmoney will do something related to Ag soon towards its members. :)
  • GoldIsCurrencyGoldIsCurrency Posts: 1,812 Gold ✭✭✭✭✭
    edited July 2016
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    edited July 2016
    @GoldIsCurrency yes I saw that video

    The last thing that I want to do is get into a flame war with @Roy Sebag , but in this very specific context I disagree. Gresham’s Law came into being when both gold coins and other coins (silver, base metal, coins with clipped corners, etc.) freely circulated.

    From Wikipedia
    The law was named in 1860 by Henry Dunning Macleod, after Sir Thomas Gresham (1519–1579), who was an English financier during the Tudor dynasty. However, there are numerous predecessors. The law had been stated earlier by Nicolaus Copernicus; for this reason, it is occasionally known as the Copernicus Law.[3][4] It was also stated in the 14th century, by Nicole Oresme c.1350,[5] in his treatise On the Origin, Nature, Law, and Alterations of Money, [6] and by jurist and historian Al-Maqrizi (1364–1442) in the Mamluk Empire;[7] and noted by Aristophanes in his play The Frogs, which dates from around the end of the 5th century BC.

    When many types of money are in circulation people tend to hoard the "good money". A perfect example of this is if you received a pre-1963 silver dime, quarter, or half dollar in your change. Would you spend it? Of course not. Yet they are still legal tender. Back in the fifteen, sixteen, seventeen, and eighteen hundreds people would preferential hord coins of value and (try to) spend the debased coins.

    Gold is nowhere today in circulation as hard currency (coinage). Gresham’s Law does not apply to bullion vaulted (or hidden) away somewhere. All of the gold today - bars or coins - is bullion. Would you use a 1oz Silver Canadian Maple Leaf or 1/10 oz Gold Canadian Maple Leaf coin - both of which are legal tender of CAD $5 - to buy five dollars worth of merchandise? Of course not. If you got one in your change would you hold on to it. You betcha. Gresham's Law is alive and well or at the very least in hibernation.

    People redeeming gold to fiat when the price of gold is high and depositing fiat to gold when the price of gold is low sounds like "buy low / sell high" to me. Ergo - people continue to treat gold like a commodity.
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    There was a fear in some quarters that customers would buy gold via the platform but never spend it. Hence the idea that fiat would drive gold out of circulation (a form of Gresham's Law if you will). But that has not proven to be the case - many people do use their goldmoney. My wife, for example, accumulated a decent amount of gold and never touched it UNTIL she travelled to Ireland where she used her Euro denominated Goldmoney Mastercard extensively.

    As for buying low and selling high, that is something people instinctively tend to try to do. But I only wanted to ooint out that people are transacting via the platform more and more and that is a good thing.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    edited July 2016
    @GrandpaBrian in the context above I agree that high transaction volume is a good thing. I myself buy gold when I can and sell when I must which as luck would have it appears to have been buy low / sell high. Perhaps others are like me and just so happened to buy in when gold was low earlier this year and now they see a chance to "take profits" or they need the money for some reason.

    I suspect we are in for a period of buy high / sell higher B)

    Another aspect is that Goldmoney is a global platform and may be the only account in which many people store their value. In this case people may time their buys and sells if possible or do so only as needed.
  • UvasUvas Posts: 680 Silver ✭✭✭✭
    I think Roy may be comparing two moneys, gold and fed notes. (or whatever flavor fiat notes your country uses)

    Popular contention being that people will simply hoard gold and use their fiat. Roy points out from company data that this isn't necessarily the case...

    A bit of a stretch for Gresham's Law? Perhaps... B)
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    Just me being pedantic again as usual :o
  • KlausKlaus Posts: 102 Copper ✭✭
    Talking about Gresham's Law, I would say it only applies when comparing two forms of money. Historically speaking, when gold and silver coexisted as money.

    Unfortunately, gold is not yet perceived as money, so I don't think Gresham's Law would apply when comparing fiat money and gold. Gresham's Law is today better seen in countries where two forms of money coexist (for example, in Argentina or in so many Latinamerican countries where the dollar is commonly used as well as the local form of money)

    However, you could build a case that when gold price rises and Goldmoney clients increase their use of gold as money for transaction purposes, the rise in gold price makes them instinctively view gold as "softer" money and therefore "hoard" the fiat money.

    Inversely, yoy may see a building "breaking point" in viewing gold as money when people precisely start increasingly spending fiat money when gold price rises
  • GrandpaBrianGrandpaBrian Posts: 679 Silver ✭✭✭✭
    If we had ham
    We could have ham n eggs
    If we had eggs!

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