Digital Gold Currencies (or e-money) are world wide currencies for the world wide web. They are online payment systems that combine money, gold or other precious metals with Internet based technology to provide a safe, easy and inexpensive way for anyone to transact business 24 hours a day. It is the future for online transactions.
Many proponents of the system claim that DGC offers a truly global and borderless currency system which is independent of exchange rate variations. Gold, silver, platinum and palladium are internationally recognised as forms of currency under ISO 4217.
Digital gold currencies are issued by a number of providers. Each competing provider issues independent currency, which normally carries the same name as their company. The DGCs currently in circulation are:
e-gold - the first digital gold currency provider, founded 1996
e-Bullion - founded 2000
e-dinar - founded 2000
GoldMoney - founded 2001
1mdc - founded 2001
Pecunix - founded 2002
Crowne Gold - founded 2002
e-grams  - founded 2006
In terms of the total quantity of gold reserves in storage, e-gold and GoldMoney are the most popular DGC providers. Unlike fractional-reserve banking, DGCs (such as e-gold and GoldMoney) hold 100% of clients' funds in reserves with a store of value. Proponents of DGC systems contend that deposits are protected against inflation, devaluation and other possible economic risks inherent in fiat currencies. These risks include the monetary policy of countries or territories, which are perceived by proponents to be harmful to the value of paper currency.
Digital currencies backed by gold are the most popular, although e-gold, e-Bullion, e-dinar, GoldMoney and Crowne Gold also provide silver backed currency or storage. Other digital silver currencies include the eLibertyDollar and Phoenix Silver. In addition to gold and silver, e-gold supply platinum and palladium backed digital currency.
Digital gold currency exchangers (DGCEs or digital gold exchange providers) are market makers which buy and sell digital gold currency in exchange for fiat currency and a transaction fee. Many can also convert one type of digital gold currency into another, such as e-gold into e-Bullion. Some DGC accounts, such as e-gold, do not provide an in-house service to purchase their private currency so it is necessary to use a third-party digital gold currency exchanger.
The London Gold Exchange is one of the World's largest traders of e-gold currency and other Digital Gold Currencies.
To be able to purchase from the London Gold Exchange and use Digital Gold Currency, you first need a free Digital Gold Currency account and a free London Gold Exchange Membership.
The advantages of using Digital Gold Currency on the web are that it is instant, cheaper and easier to trade internationally. Funds in a gold backed Digital Gold Currency account are based on the value of the price of gold itself and your holding is stored in weight (grams or ounces), but for convenience you can have it's value associated to a major fiat currency. The transfer of digital gold takes seconds from one Digital Gold Currency account to another.