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Dear Investor, "How will the new E-gold fees affect you?" On January 1st 2004 E-gold is changing or more precisely raising their fees! What we have investigated for you is by how much. Firstly, there is no change in the fact that only the receiver is charged fees, unlike e-bullion where the sender is charged a fixed transfer fee of $0.25. Secondly, it makes sense that the new e-gold fees are not defined in terms of USD, where as previously the maximum fee was 50 cents. The new maximum spend fee is 0.05 Grams of Gold (AUG), which is equal to $0.66 at today's exchange rate. Thirdly, they have introduced minimum spend amount of 0.0004 Grams of Gold (AUG), equal to about half a cent ($0.0053) at today's exchange rate. Fourthly and most importantly, is the increased fees for smaller spend, detailed below: For spends below the minimum amount and $1.31 the transfer fee is between 55% and 5%. For example at today's exchange rates, those systems based upon $0.01 spends, the receiver will be charged an overall fee of 0.313 cents ($0.00313), which is a much increased fee of 31.3% compared to the original 1% fee ($0.0001)! For spends between $1.31 and $6.57 the fees are between 5% and 2%. For example at today's exchange rates, a $5 spend, the receiver will be charged an overall fee of 0.11 cents ($0.112), which is an increased fee of 2.24% compared to the original 1% fee ($0.05)! For spends $6.57 and $13.15 the fees will range between 2% and 1%. For example at today's exchange rates, a $10 spend, the receiver will be charged an overall fee of 0.13 cents ($0.132), which is an increased fee of 1.31% compared to the original 1% fee ($0.10)! For spends over 1 Gram of Gold (AUG) the rate is 1% or less, equal to the maximum rate of $0.66 at today's exchange rate. Advantages: The e-gold payment system should become more responsive as users will be reluctant to pay charges of up to 55% on spends worth less than a dollar. Disadvantages: E-gold becomes a more costly medium to use. E-bullion becomes a more cost effective alternative for transfers over $25. Conclusion: A widening gap is appearing between the use of gold-based and digital-based e-currencies such as Evocash, who charge no fees for spends and can be currently purchased for very low rates of 1% or less! For information on purchasing e-gold, e-bullion and Evocash at the best rates, please check out details of our E-currency Buyers Guide in the following Just-Info News & Updates or send us a blank email entitled, "E-currency Buyers Guide". Next Week: we will report on the weakening USD, strong Euro and re-aligning/strengthening gold prices. Best regards |