With the Instability of the US Economy, is E-gold a Good Investment or Not?

Gold, although a traditionally seemed good and steady investment for growth. We have been taught since young about the value of gold and many countries still use gold as part of their reserve today. Gold has always been part of the federal reserve in the US throughout its history of existence. Due to its recent changes, the US treasury has decided to monetized these gold bricks into US dollars in belief of the strength in US dollars. Since then, the gold reserve from the US has been moved into countries whom are interested in its purchase including countries in Europe and Asia.

Gold in its recent years have reached several record highs in a very unusual high percentage of growth. Like real estate, when it is growing on a steady pace it is only seen as the norm from the market. However through these unusual percentage of growth we can only suspect that it can potentially mean a bubble that is waiting to burst similar to the real estate bubble which I believe heavily on and it directly relates to e-gold.

There are many factors which provides support to my belief in attributing to my conclusion. Besides just looking at the facts of gold itself, e-gold is in short currency that is backed by the value of gold itself. E-gold is the currency is obtained through a bank or financial institution in exchange with any currencies. In its functionality, e-gold functions separately but in many ways similar to Paypal. One of the biggest difference between the two is where Paypal if proper explanation were to be provided allows the transaction to be reversed versus e-gold where it is permanent. Because e-gold is not a real bank institution, it does not provide its users FDIC security which banks would otherwise.

Whether if a person wants to obtain e-gold, exchange e-gold into actual gold, or exchanging gold into e-gold then currency, there are are always transaction fees associated with each and everyone of the transaction. Each transaction fee would range between as low as $4 all the way up to $20 on some of the bigger institutions. In another words, just to break even anyone with e-gold would have to at least make enough money just to cover these transaction fees to simply break even. To make back your original investment without losing much poses a serious challenge for small investors. That is not to mention any type of transaction that you make with your e-gold whether it is an investment or exchange that there are no shortage of of scam artists who take the advantage of the irreversible transactions system between e-gold. Since e-gold is not traceable, this is a common area misers utilizing various forms of frauds to spawn. I would recommend not jumping into e-gold investment or conversion unless you have a fairly decent knowledge or a heavy amount of e-gold in your account to make e-gold worth your time. Good luck!