market makers
defined
how they work
picking one
issues
What is a 'market maker'
A market maker is someone who trades e-gold for other kinds of money.

It's the person who sells e-gold and buys e-gold from you if you want cash or another e-currency.

E-gold LTD, who run www.e-gold.com, exist to store and transfer gold. They don't sell it.
How do market makers do business?
Most (or all) market makers run websites where they offer to sell you e-gold. Most business is done online, either through forms on the website or by email. Some offer the ability to communicate by fax. Very few let you contact them by telephone.
Picking a market maker
The things to consider are:

1. What's the easiest way to pay? The usual options are by cash deposit into a bank account, money transfers and occassionally credit card.
  • Cash deposit: usually no charge for this. Can be convenient if the bank is close to you. No record kept of who really paid into the account. Very quick - the money is usually transferred instantly.
  • Bank transfer: usually a small charge by your bank. Convenient if you have on-line or telebanking, or your bank is close by. Record kept of transfer. Usually quick.
  • Western Union: a small charge. Can be bought at local western Union agent or by credit card over the phone. Record kept of your real details. Quick.
  • Money order, cheque or cash: the slowest option, depending on post. Cash can be totally anonymous. Risk of money getting lost in post. Checks can be very slow to process.
2. What's the charge? Each market maker charges a different amount in commission. The cost depends mostly on how you pay for your gold. Cash deposit is usually cheapest and credit card transfer are the most expensive. Rates start at around 2% ($2 to buy $100 gold) for cash deposit up to 25% for credit card payments ($25 to buy $100 gold!). Expect a minimum commission of around $5 even for small amounts.

3. How long until you get your gold. Varies from 1 hour to 3 days. Most market makers are small companies and don't work 24 hours a day. Expect to wait up to 24 hours until your gold is ready.

Issues to consider
Finding the right market maker can be tricky at first. Most people would like to pay by credit, a quick payment. However, most market makers insist of having proof of identity faxed from credit card cistomers. A copy of your passport, credit card and a utility bill is a common requirement. Also, it's an expensive way to buy gold, usually $20 or more for even small purchases.

Many market makers accept payment by Western Union. Since Western Union accept credit card payments over the phone in most countries, this might be the cheapest way of making quick purchase from your home.

Cash deposits are cheap and quick. If you don't put your real name on the deposit slip, it's very discrete. Similarly, sending cash or a money order by post doesn't give your real name. This is perfect for keeping your purchases private.

E-gold isn't intended as a totally anonymous system. It's great for making sure nosy people don't invade your privacy. Don't expect any digital currency to provide 100% anonymity even if it claims it will.