Now more than ever we are becoming aware of the limitations of a currency system that is not based on any real asset. Using a credit card to make a purchase is just a ‘paper’ transaction. It isn’t backed up by tangible goods. If the person who initiated the purchase doesn’t pay, the vendor is out of luck in most cases. Using e gold investment is different since all transactions are backed by the equivalent value in gold.
Think of it like this, when you make a purchase with a credit card the person you buy the product or service from doesn’t actually have anything of value backing up that purchase. They are essentially allowing you to back it up with a ‘promise to pay’.
If you don’t pay your bill, they simply won’t get paid. If that happens in a wide spread manner, such as it is in the economy right now, that means a lot of companies don’t have any money coming in.
With E gold, on the other hand. You are buying goods or services and it’s like you’re handing over the exact amount of gold to cover the purchase price.
It’s a lot like how things used to be in the past. Think of the old west where someone would go into the general store and pay for their goods with a certain number of ounces of gold. That had real, tangible value and that is the concept behind e gold.
Today’s paper currency is only as good as the government behind it. It isn’t directly tied to an actual gold reserve like it used to be. In the past when the government printed up a billion dollars in currency they had a billion dollars of gold stored away in a vault. They didn’t print more money than what they had in actual gold reserves.
It doesn’t work that way anymore, at least not in the U.S. Our current system of currency is based off of a debt mentality. The treasury can print more money when and if they think it’s necessary and they don’t have to worry about tying it to any actual gold standard.
Many people believe that it’s inevitable to move back to the gold standard method for determining the amount of currency in circulation. Part of the current economic meltdown is due to the fact that there is nothing ‘propping’ up our currency.
Investing with gold backed currency is a growing trend since virtually every country in the world recognizes the value of gold. Again, when you are investing worldwide and with the currencies of different countries being worth different amounts, it can be a challenge.
But when you are using egold to invest you are relying on a set value since there is actual gold bullion backing up that investment.
To learn more about e gold investment just go online. There you will be able to find all the information you need to explain the concept as well as explain the advantages of making investments which are backed up with actual gold reserves.