How c-gold works
c-gold.com is a gold-backed (and redeemable), electronic book-entry system that serves as a platform of free and voluntary commerce and exchange between users, denominated in grams of gold (G).
Initially c-gold.com is being established as an online presence, with gold being stored for the users at premises owned by the company and/or at convenient locations provided by third-party contractors.
Anyone who is of legal age in his country of residence can open a c-gold account and operate it to receive and make payments to any other user.
To obtain a balance of gold (G) into their respective c-gold accounts, users can either receive payments from other users who already have gold in their accounts, or they can deposit bullion bars with c-gold. The minimum bullion deposit will initially be set at one kilogram of 999.99 fine, hallmarked bars, but with a growing user base, smaller minimum weights and also several specific types of bullion coins will be accepted.
Another way for users to obtain c-gold is to use the services of independent, third-party exchangers, who will pay c-gold into user accounts in return for fiat currency payments.
Users can use their c-gold account balances to make payments to each other by using the web-based interface to login their account and pay c-gold (G) to another account.
To withdraw a balance of gold (G) from their respective c-gold accounts, users have the choice of obtaining gold bullion in person at participating outlets (see Expansion & Franchising), or to have bullion shipped to their individual address on record (fees and charges apply).
Third party exchangers are also offering a means for users to convert their c-gold (G) holdings into fiat currencies, independent of c-gold, by paying a balance of gold from their respective accounts into the account of an exchanger and receiving an amount of fiat currency by means of bank wire, cheque, money order, or other financial instruments, unrelated to c-gold.
c-gold.com itself, will at no time offer exchange services itself. This means it is impossible to buy gold from, or sell gold to c-gold.com, and c-gold.com will not handle cash, nor will it maintain accounts with any financial institution whatsoever.
As such, c-gold.com's main function is to own, operate and maintain the online book-entry system, as well as to accept bullion deposits added to c-gold user accounts and manage redemption orders when users are un-bailing / redeeming bars from their accounts.