response to Campeador -

TexTex Posts: 197 Bronze ✭✭✭
So I responded to your question but it got flagged because of one edit. The flagging system is a bit annoying.

@Campeador
First part:
https://www.goldmoney.com/holding-safety-and-transparency
The whole financial world and eCommerce world is built on trust. Through knowledge trust is built. The level of trust you give them is really up to you. I believe everyone of us give GM varying levels of trust every day, just like we do with our banks, governments, restaurants, etc... The emotions of hope and fear play a big role as well.

Second part:
I live in the US and received my gold within a couple business days. It was really fast, faster than I thought it was going to be.
RocketDog said:

I feel I have to trust them to some degree, because holding all gold in physical form is inconvenient for transacting. And I think they are actually more trustworthy than modern banks. Their whole premise is to provide real value through gold holdings. Could it be a ponzi scheme? Theoretically yes, but somehow I just doubt it.
I think the only real risk in doing business with Goldmoney is the risk of the government/financial sector trying to run them out of business for providing us a value-based alternative to the US dollar, or trying to confiscate our gold after a currency crash, or taxing it, or some other form of theft like that.
I agree @rocketdog but would like to add, aren't currency banks ponzi schemes? If everyone of us went to our respected banks and requested our cash they would run out of cash to give us and would have to close. Banks work because of the service they provide to us, convenience. Because of banks our money is very fluid. Goldmoney is a brilliant idea and service because it teams up with that fluid system, doesn't mess with the debt / risk side of that system and adds a value based foundation in the form of Gold (and other metals).

Comments

  • TexTex Posts: 197 Bronze ✭✭✭
    To add, the phrase "if you don't hold it you don't own it" is catchy but not true.

    For example: I have my house but technically the bank still owns it and above them the government owns the land. I will always rent the land from the government. When I buy a car and get a loan I hold it but the bank owns it and so on.

    The rule of law gives us certain rights and protects property that is under our stewardship. (It's all under our stewardship because we can't take it when we go home)

    The only time the phrase 'if you don't hold it, you don't own it" is absolutely true is in a apocalypse situation where the rule of law has broken down and humanity is at its worse.
  • mr1mr1 Posts: 375 Silver ✭✭✭✭
    Tex said:

    I have my house but technically the bank still owns it and above them the government owns the land. I will always rent the land from the government. When I buy a car and get a loan I hold it but the bank owns it and so on.

    @Tex
    Actually the bank does not technically own your home or your car. You technically are the owner. If you have a mortgage or car loan, the bank just places a lien on your property, but you are still the rightful owner. The bank doesn't have any direct control over the property. There may be certain conditions written into the loan or mortgage (like you have to maintain insurance), but the most the bank can do to enforce the conditions is to call the loan due. If you can pay it off, they can't take the property. They own the money they lent you, not the house. Only if you don't comply with the terms of the loan can they foreclose on the house to recoup the money they lent you. So the bank is more of a figurative owner. You are technically the owner.

    I do agree about the Government acting as though it actually owns the land. They claim the right to exert control over the use of personal property and basically require rental payments through property tax. I haven't willingly pledged my property to the government as collateral for anything, yet if I don't pay property taxes, they can still take it away from me.
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