Category Archives: E-Currencies

Interview With Gordon Hayes Creator Of Phoenix Dollar Pt. 1 of 2

UPDATE: Sorry but it appears Phoenix Dollar is no more!

Check out this interview conducted with the creator of Phoenix Dollar by Digital Money World.

The Phoenix Dollar was created in late 2005. The company is a silver bullion retailer offering their own brand of pure silver bars, disks and even digital silver holdings which is 100% backed by bars in a secure vault.

These accounts are free to open and the Phoenix Dollar community offers some exciting advantages and tools to those who would use the digital silver for online commerce. The digital silver is transferable between anyone operating a Phoenix Dollar Holding and there are several popular independent exchange providers who can assist you with a secondary market transaction. The digital product is exchangeable with other digital currency such as Pecunix.

Any user can easily have their silver balance (as little as one ounce) delivered right to their front door for just a few dollars over the spot price. The physical silver one ounce disks and bars are very beautiful and I happen to own several.

The bars and disks can be used as payment between any person as a method of barter. While some of these items may look like money, its important to note that The Phoenix Silver Bullion Products are NOT “legal tender” and NOT “current money” nor are they endorsed by any sovereign government, country, city or state. While the designs are great, both the silver and paper designs do not look like government issued currency. Paper designs? Yes, the company is soon offering SilverBacks® which is a series of Authentic Paper Silver Certificates. More on that below.

Today I’m interviewing Gordon Hayes designer, creator and operator of the The Phoenix Dollar.

(Q) Can you tell us your current position with the Phoenix Dollar company and how long has it been operating?

(A) I am the President. We opened to the public in October of 2005. The concept was in development for a couple years before that.

(Q) Who came up with the design for the silver bullion products? How about those new silver certificates?

(A) I have two very special artists that I collaborate with who shall remain nameless for security reasons. I create the concepts and they come up with the artwork for them. Sometimes I am able to pick a piece out of their extensive portfolio for certain things and apply them to the silver without any modifications. Having a high caliber art team has enabled us to exceed in designing silver pieces that never fail to win people over for their sheer beauty.

(Q) Out of all the successful businesses you have been involved with over the years, why did you create the Phoenix Dollar? What were your reasons for coming out with a private barter currency backed by silver?

(A) The world simply needs to know that what I am doing is possible. My ultimate goal is to create a currency that actually improves the lives of its owners. This would take a bit of explaining to get across properly, but to summarize, today we have a world that contains all sorts of fiat currencies. Not a single one of them have any real value except that which is derived from the end of a gun. I set out to build a currency that actually protects the wealth of its users, that improves how people interact and do business with one another and that creates more freedom and success in the world. This is the sort of philosophical background information that is not really necessary to know when using the currency. The results of using it speak in subtle ways.

Phoenix SilverBacks(Q) I have seen the pictures of your new SilverBacks® paper silver certificates which are now on the way. What do these certificates offer users that the bars and disks don’t already provide?

(A) This product conflicts with my personal beliefs to some extent, but its main benefits are that you can carry it in your pocket in quantity without being weighted down so much that you cannot walk. Silver bullion is very heavy and cannot easily be transported in quantity. The SilverBacks® address that problem thus enabling the currency to gain more use in the everyday over the counter market. I expect this product line to be a curiosity in the market for some time, but I am doing it anyway, just in case things rapidly change.

(Q) Your bullion products look fantastic.

(A) Thank you.

(Q) They also make fine gifts.

(A) That is right. I have a lot of feedback from customers who do use the silver items as gifts. Every time I hear a story like this, I feel very good about life. One customer was very recently married and all of the guests at the wedding received a silver bar as a gift. This shows a very distinctive respect for the guests at the wedding and I was very humbled.

Phoenix Silver(Q) Everyone I know loves to receive gold and silver. If I order some of the 1 oz. silver bullion disks or bars, do you ship them right away and are they in mint condition?

(A) Absolutely. This is what has made us successful. We have the fastest shipping times of any bullion dealer anywhere on the planet bar none. We ship within 24 hours for all orders on business days and all the silver is brand new, freshly minted and in perfect condition. I have heard horror stories of other companies who have 90 day delays. This seems to be very common. I am determined to take all their customers away from them and make them my own loyal patrons.

(Q) If I order 10 or 20 of the disks, can I have you ship them to someone as a gift?

(A) Yes we can. We do this as a courtesy for our trusted customers. There are some cases where we will not do that such as for people trying to launder money. It helps if you know us and it especially helps if you take the time to go through our verification process. We place a huge premium on customers who take the time to establish a personal trust based relationship with us. I can’t emphasize that enough.

(Q) Do you have a blog or a forum where readers can keep up with the progress of the Phoenix Dollar?

(A) We have a discussion forum here:

(Q) Regarding, the digital silver holdings, where is the silver bullion kept?

We used to think it was useful to disclose that data and did for some time, but we have since come to the conclusion that it serves no purpose to our customers to tell the world about our storage services. We have since changed things around a lot behind the scenes. Our current policy is non disclosure.

(Q) Is the Phoenix Dollar associated with the city Phoenix, Arizona?

(A) No, we are not endorsed by any sovereign government, country, state, or city at this time. The Phoenix is representative of the mythical Phoenix bird which is actually a hybrid of 3 animals and is metaphorically representative of the death of the old currency and birth of the new. Wikipedia has this to say:

The phoenix is a mythical sacred firebird in ancient Egyptian mythology, and in myths derived from it. Said to live for 500 or 1461 years (depending on the source), the phoenix is a bird with beautiful gold and red plumage. At the end of its life-cycle the phoenix builds itself a nest of cinnamon twigs that it then ignites; both nest and bird burn fiercely and are reduced to ashes, from which a new, young phoenix arises. The new phoenix is destined to live, usually, as long as the old one. In some cases of mythology, however, this is not true. The new phoenix embalms the ashes of the old phoenix in an egg made of myrrh and deposits it in the Egyptian city of Heliopolis (”the city of the sun” in Greek). The bird was also said to regenerate when hurt or wounded by a foe, thus being almost immortal and invincible — a symbol of fire and divinity. Tears from a phoenix can heal wounds.

The same properties found in this mythical creature are also found in silver bullion itself. It is a known fact now that silver ions contain disinfectant and healing properties. All this talk in the news about paper and metal coin currency carrying germs and such would be immediately rendered moot of we actually used silver in commerce.

(Q) What do you see as the most important difference between fiat money and silver backed Phoenix Dollars (barter money)?

(A) Where do I begin? Well you asked for the most important so personally I feel that the most important thing is that silver currency limits governments in their ability to create wars and act as an empire. If all the currency were based on silver and/or gold bullion, the idea of creating aggressive wars against non threatening nations would be over because to do so would immediately shrink the wealth of the attacker until they either gave up or became extinct. With the current fiat money, governments can just print it and keep printing it for as long as the people “believe” in its value. Thus, they can print enough to go to war. Silver currency would put a stop to that immediately and literally usher in a time of peace, but this is a world wide issue and it cannot be practiced on an island alone.

(Q) What are the benefits your silver products could bring to everyday brick and mortar commerce?

(A) If you have the choice to tell the truth and gain a prize, or tell a lie and buy some time which do you chose? Everything that is wrong with fiat money is solved by using commodity money. This idea spans so many things, but one simple example is purchasing power. When you use commodity money, its ability to buy something cannot be inflated away through the use of the printing press. If you print more fiat money, the prior existing money is reduced in its ability to make purchases over time and the people who are inclined to save and do the right things for their families are penalized. Commodity money, like silver and gold, maintain their purchasing power over long periods of time. I can illustrate this in a chart:

The 200 year long line in this chart illustrates your purchasing power when using silver and gold as money. In the early 1970’s the government removed the silver backing from money and the people are now literally in trouble, in debt and in what amounts to a crisis that is slowly emerging.

(Q) Is there any type of audit, either monthly or quarterly that you show your holding holders?

(A) We have redefined the concept of the conventional audit. We are audited by our customers on a continuous basis on about a 3 day delay. Since we ship and redeem physical silver within 24 hours on all orders, our customers are learning to trust that the silver is real and of the highest quality simply by continuously receiving it as ordered at their doorstep. I cannot conceive of any auditing system that would be more trustworthy that that. If we ever failed to deliver on a redemption or bullion order it would become a big deal real quick in the community.

(Q) I know that Phoenix Silver has become very popular with my friends and associates. Has the business grown as rapidly as you projected? More rapidly?

(A) The physical bullion aspect of the business has taken off faster than expected and the digital side is just as expected which is very slow and steady growth as we work to educate people about using this type of currency. Since we do not allow any grey/black market or investment type programs to use the currency the growth is slower that it otherwise would be. We believe that long term slow growth and a solid reputation are vastly superior to allowing just anyone to come in and use the digital currency system. As a result, we have a stable digital currency that people can trust and that has zero fraud.

(Q) Where do you see the price of silver going in the next twelve months?

(A) I see it catching a low at the end of August 2007 and never looking back for the next 5 years. I expect it to dip slightly under $11/oz USD and then its anyone’s guess. Personally I think $200/oz or even $2000/oz would not be surprising in the next decade. It all depends on how the US Dollar devalues. This can be done slowly over a decade or the fed could lose control over it and it could be a sudden worldwide collapse. For now, they are doing us a favor by manipulating the silver and gold markets and keeping the prices down while slow landing the US Dollar. This cannot last forever though. The time bomb is ticking on the US Dollar and they know it.

(Q) I read the mission statement as listed on the Phoenix Dollar web site. Here it is again for readers:

* To protect wealth through quality bullion products.
* To provide the fastest bullion services and design beautiful bullion products that people will be proud to own.
* To promote and teach freedom in the course of our business

How can owning Phoenix Silver bullion protect my wealth from being eroded?

(A) The value of silver bullion is not based on fiat dollars. It is based on some weight in ounces of a commodity that has had a steady and low supply rate in the market for a very long time. Thousands of years. Once you convert to silver, your wealth cannot change since it becomes based in weight and not fiat dollars which is not an accurate measurement of anything. So once you store your wealth in a commodity the only way to reduce it is to physically shave or cut off slivers of the metal. What people perceive as a change in value in the market price of silver is actually an illusion. What is changing in reality is the value of a dollar against the weight of silver. Over time, the fiat dollar value always trends toward zero at your expense.

to be continued…

New kid on the Digital Gold Currency block: c-gold

Attention digital gold currency fans. There is a new kid on the block, and it goes by the name of “c-gold”(Commerce Gold). A Malaysian start up digital gold currency, quietly entered the marketplace and now just a few days old it is rapidly gaining acceptance. The thing that troubles me is just how similar it is to e-gold. Their website has the exact same layout and to be honest on first sight it reeks of “copy cat” and “unoriginal”.

C-gold is a new ‘digital’ gold currency platform which not only operates online, but also will soon work offline through brick and mortar global locations. The management is forecasting that soon it will launch additional shop fronts, mobile wallets and integration for handheld devices.

Some other successful companies management is associated with include: CyberFrontier Corporation, CyFroCA$H Incorporated, Cyberica.NET Limited (,,CyberGoldBank.NET and is also responsible for the Private Gold Equities Exchange Limited which is being developed as a privately operated alternative to public stock exchanges.

C-gold will eventually offer over-the-counter bailment’s and redemptions. This operation is handled at brick and mortar locations. Verified, account holders simply drop off a bar and pick up a bar when funding or redeeming their digital account. There is NO surcharge or extra fees for this operation. Bars are also shipped worldwide and the service is fast Nice! (shipping, handling, insurance charges will apply) On further though, I am not sure how they cannot have a surcharge – the economics just doesn’t make sense.

Anyways, the minimum bailment in or out is 1,000 grams (999 fine, marked and certified bars only) They predict that smaller denominations and bullion coins will be added as that part of the business grows. Today, which is about 4 days into their new operation, 5200 grams are already on deposit. You can see their daily holdings right down to the bar mark and number from the c-gold holdings page.

“Any user with an active and verified User Holdings Account can visit a shop of the Commerce Gold Network and add gold to his or her account by bailing in a gold bar (type conditions apply).”

Verified accounts require ID, utility bills and other personal information. Why? The c-gold operators understand that the ‘The Know Your Customer’ (KYC) rules/regulations/laws spanning multiple jurisdictions around the globe are very important in today’s digital economy in order to combat terrorist funding, money laundering, child pornography, copyright infringements and to help eliminate attempts to abuse the c-gold system.

The first retail location for this operation is now being prepared in Penang, Malaysia. Negotiations with interested and qualified parties are also underway including franchise shops, ’shoplets’ and strategic global locations.

So how do you fund your account? Yes, I found myself asking the same question, and the answer is that you can either bail in a gold bar or purchase c-gold from someone who has already done that. So far I see no “exchange agents” that accept c-gold and bailing in a 1 kilo gold bullion bar is not exactly within my reach, if you know what I mean.

Conclusion: As you can probably tell I am not impressed with c-gold, but in the end either it will be “the next big thing” in the digital gold currency arena or it will be a colossal failure. We shall have to wait and see.

–update– it has come to my attention that you can now fund your account by using these two exchangers: or

To open up an account visit:


see this link for exchangers that offer c-gold as an in/out exchange option

GoldMoney: An economical and convenient way to own gold

I thought I’d take a break from posting about e-gold’s legal problems and focus on reviewing another way you can economically and conveniently own gold. What I am going to review is a company called GoldMoney. It was founded by James Turk who is a prominent proponent and supporter of gold.

“GoldMoney is easy to use and inexpensive, plus you have the convenience of transacting online. Your precious metal is secure because it is:

  • safely stored for you in a specialised bullion vault, and
  • insured through a policy underwritten at Lloyd’s of London.

You have 24/7 online access to your precious metal, which you can sell at any time. Also, your gold can be used as online currency and transferred instantly to anyone with a GoldMoney account.

GoldMoney was founded by gold industry leaders who understand gold’s usefulness as a financial asset and value its worldwide role as money. Investors and shareholders of GoldMoney include two publicly traded gold mining companies, DRDGOLD (South Africa) and IAMGOLD (Canada).

GoldMoney’s main office is located in Jersey, one of the British Channel Islands situated in the English Channel near the north-western tip of France. Our website and database servers, also located in Jersey, are housed in a secure, state-of-the-art data centre.

Office Address
Net Transactions Limited
ASL House
12-14 David Place
St Helier, Jersey
British Channel Islands (about)

Tel: +44-1534-760-133
Fax: +44-1534-760-125″

As you can see GoldMoney is 100% offshore based so your gold is protected from potential government seizures.

Opening up an account was fairly easy for me, BUT you are required to provide IDENTIFICATIOON. Yes, you’ve heard right, this is not e-gold where you could open up an account with 100% false information and go on about your merry business doing whatever activity you please – be it legal or otherwise – so please bear this in mind. I think overall this is a positive point.

A bit of info about GoldMoney and how it works:

“GoldMoney is like online banking, but your account is denominated in goldgrams and mils, not dollars and cents. Each GoldMoney goldgram® you own is safely stored for you in allocated storage in a specialised bullion vault near London, England, and is insured through a policy underwritten at Lloyd’s of London. When you buy goldgrams, you own pure gold in a secure vault.”

“Just like shares of stock represent your fractional ownership of a company, your goldgrams represent your ownership of a portion of the gold held for GoldMoney customers in the secure vault.

GoldMoney’s website and database servers keep track of your ownership of goldgrams and mils (1000 mils equal one goldgram, expressed as 1gg) and provide secure, 24/7 online access to your account.”

“GoldMoney allows you to send gold to anyone with an account at GoldMoney. Unlike most online payment systems that only work in some countries, anyone anywhere in the world with Internet access can open an account and begin using GoldMoney to make and receive instantaneous, non-repudiable payments, anytime day or night.”

Ok, now for the all important fees:

Account fee – 100 mils (about US$2.15) per month
The account fee is charged only if there are goldgrams in your Holding. You pay only 100 mils per month, regardless how many goldgrams you own. The account fee may vary for large accounts.

Payment fee –
Min: 10 mils (about US$0.21)
Max: 100 mils (about US$2.15)

A payment fee is charged when you transfer goldgrams to another Holding. It is 1% of the payment amount, with a minimum fee of 10 mils and a maximum fee of 100 mils. For example, a payment valued at $20 costs 20 cents, whereas a payment valued at $20,000 costs only $2.15.

Service fee – 10 mils to 10gg
Charged only if you request a special service. The exact fee depends upon the time required by GoldMoney staff to complete your request.

Silver Storage fee – 0.986% per annum, which is 0.0825% per month, with a minimum fee of 0.2oz per month. Charged only when you own silver, it is deducted monthly from your Holding.

Current Fees for Bank Wire Transfers

CAD – Canadian Dollars
No wire fee until 1 January 2007, after which C$55 per wire transfer.

EUR – Euros
€45 per wire transfer.

GBP – British Pounds
No charge for 3-day BACS transfers within the UK.
£20 per one-day CHAPS transfer to accounts within the UK, £30 for international wire transfers.

USD – US Dollars
No charge for electronic check transfers within the USA.
US$12 for wire transfers to accounts within the USA, US$50 for international wire transfers.

Look at the above! You can purchase gold and the money will be take directly from your bank account! Very convenient. They used to offer the same service to Canadian clients, but sadly for whatever reason they’ve stopped that service :( That is too bad as I wanted to use GoldMoney to keep 25% of my assets in gold.

Check out GoldMoney’s website at:

Looking to buy e-gold or pecunix with paypal?

Greetings dear readers. I’ve been selling my e-gold in exchange for paypal to a select group of people, and it’s been going pretty good so far, so I’ve decided to enlarge my “customer base” as they say in marketing lingo.

If you want e-gold or pecunix and have paypal to give, then let me know and we can arrange to do business.

Here are my business terms:

1) All business will be conducted via e-mail communication

2) You must have a verified paypal account

3) I only accept paypal payments funded via bank transfer or from other paypal accounts

4) NO credit card funded payments (only by special request, but my fees will be substantially higher – see below for details)

5) My fee for this service is 10% (paypal to e-gold involved substantial risk on my part!)

6) I accept payments in Canadian (CAD) & United States (USD) Dollars

7) Buyer pays first (no exceptions)

So for example let’s say you want $100 USD worth of e-gold. You will have to send me a payment of $110 USD because 10% of $100 is equal to $10. If you need help figuring this out just go to and type in the following “10% of “. So you would then send me a paypal payment for the amount you want PLUS 10% of that.

There really aren’t many people who would be willing to do this, so I’m taking a substantial risk; hence the higher fees.

I CAN do credit card funded paypal payments, but only by special request. You will have to provide me with the following pieces of information before I will accept your business.

I will need the following (besides the obvious credit card info):

1) Your credit card company’s toll free phone number
2) A scanned copy of a national ID card (ie. Driver’s License, Passport) that matches the info on your credit card obviously – don’t try any funny business! :)

No I will NOT steal your personal info! I only require this so as to make the transaction safe for both of us. You will find that I am an honest man who doesn’t really need to rip you off to survive. There are almost no major exchangers that will accept paypal payments, and I don’t blame them; PayPal is risky! I’m willing to bear this risk provided that I can trust you.


e-gold: 100% gold backed digital currency

Greetings! This time I am not here to tell you about any opportunities, but instead I’m going to rave about e-gold. E-gold is a digital-currency 100% backed by gold, or as some people prefer to say it, a Digital Gold Currency (DGC). So why am I telling you about a supposed “digital currency”, and what exactly are “digital currencies”, and why is e-gold important. OK, OK, I know you have a lot of questions, so I’ll try to address as many as I can.

First of all, I am a big fan of digital-currencies, but I am an even bigger fan of what I consider to be the best digital-currencies; those backed by precious metals. E-gold is such a digital-currency, which guarantees that your money is backed by pure gold. Why is this important? Well, e-gold is free-market money, and therefore it cannot be manipulated by any government. E-gold is also a truly international currency, as it is nothing more than gold circulated electronically. What you are truly doing when you purchasing e-gold (more about this later) is you are taking ownership of pure gold. Gold cannot be inflated, and therefore cannot be devalued by inflation as often happens to fiat currencies.

So what are the advantages of e-gold? Here is all that you need to know:

Immediate payment no waiting for checks to clear or credits to be made.

No chargebacks “Get paid, stay paid” unlike credit card payments.

Secure, user friendly access to your account

Easy shopping cart interface anyone can accept e-gold on their web site.

Low fees lower than credit cards or competing payment services. (they really mean this! e-gold has the LOWEST FEES of any payment processor – lower than paypal!)

Refer accounts, make money using the e-gold Incentive program.

Buy or sell e-gold from/to the independent exchange service who best meets your needs.

Note: The above statement is very important! Since e-gold is a true currency, you cannot just purchase it from the e-gold company directly. Someone who already has e-gold in his/her account must send it to your account. Some people/companies are willing to exchange their e-gold for fiat currencies (US Dollar, etc) for a small fee of course. Althought e-gold has a subsidiary company called Omnipay which will sell you gold in exchange for US dollar, there numerous other companies (e-gold calls them “market makers”) who will provide you with the same service – sometimes with lower service fees than e-gold’s Omnipay.

Available Worldwide the world’s first truly global payment option.

Since e-gold is a true digital currency, you can send money to anyone in the world, as long as they have access to a computer and an internet connection. There are even DEBIT CARDS you can purchase from some companies which will allow you to instantly withdraw your e-gold in the form of fiat currency at any ATM machine in the world – pretty convenient if you ask me.

Ok, I think I’ve got you convinced! So click this link to open up an e-gold account today!: