What is a gold fluctuation risk?
The gold exchanger Gold-cash explains it as follows: Most digital currencies are pegged not to a national currency such as US Dollar, but to a precious metal, such as gold. The price of gold in dollar terms fluctuates every minute. Your holdings at currencies like E-gold are held in grams or ounces, not in dollars. So, as there is a time lag between the time you send us E-Gold and time we send you US Dollars or Euros, the price of gold might change slightly, and you might receive an amount that differs from your calculations. Although we strive to process transfers as fast as possible, it might take us from one to four hours to process it. To illustrate, let’s say you send us 10 grams of E-Gold at 10:00 GMT. At this time 1 gram of E-Gold costs $10. This means, that you sent us $100 of E-Gold. We will receive the E-Gold to our account and will process your order at 13:00. Let’s say the price of gold changed from $10 per gram to $11 per gram. This means that at the time of processing we
