You are right on your part but the answer to this question is that people used to sell egold for higher prices for paypal. And many of them are legit. So this is not a proper question mate.
I wasn't trying to pick on you, I just seriously didn't understand why such a transaction would seem like a good idea to anyone of average intelligence. Then I visited the egold website and it all started to make sense. Again, no offense intended.
thanks for the alert and i request all people to think practical and beware this kind of scam. Do not fall in this trap!