Gold is the ultimate store of value. It is both timeless and precious. Many people appreciate these properties and hold gold in their investment portfolio to hedge against market volatility and uncertainty. And many economists and analysts predict that the importance of gold being held in your investment portfolio is only set to increase due to Quantitative Easing (QE). QE has the effect of reducing the purchasing power of paper currencies and will eventually lead to inflation. Thus investors feel it is more important to hold gold now than ever before as gold prices are only set to increase in the coming years.
But many sceptics say that whilst gold is a good store of value, it is a non-productive asset. It cannot be used in the modern world to purchase everyday items as the modern world works on paper currency.
But the digital currency revolution with Bitcoin leading the way changed all this. Alternative forms of non paper currency are quickly becoming mainstream and a popular way to transact as opposed to the traditional paper currency. The problem with paper currency is that central bank policies such as Quantitative Easing is making these paper currencies worth less by the day. If there was only a form of money that would not only hold its value but increase in value over time. Oh wait, there is – Gold!
BitGold allows people who are seeing their money constantly being eroded by central bank policy to hold their savings in Gold. Whilst this has been done by many companies before, BitGold goes a step further by allowing users to use these ‘gold savings’ for transaction purposes i.e. to make mortgage or car payments.
BitGold aims to make saving, investing and transacting in gold easy and accessible to all people.
*Although Bitgold was not made for you to invest in gold in the traditional sense but for you to instead save your money and transact in gold, it can still be used as an investing platform due to its ease of use and structure.
At a Glance
What is BitGold?
Bitgold is an online financial technology company that is striving to make saving and investing in gold easy for all people.
BitGold pairs together the ease and convenience of digital payments and online savings with the integrity and stability of gold. Their mission is to make physical gold accessible to everyone by minimising or removing fees wherever possible.
The platform offers people the ability to deposit gold in their BitGold accounts, and then use those funds (or their value in their local currency) to make mortgage or car payments – or simply to pay for a coffee. You can say its a bit like Bitcoin but offers actual backup to the money in terms of physical gold.
Essentially, BitGold aims to make saving and transacting in gold easy, cost-effective, transparent and accessible to all people.
Putting your savings in gold is important to many investors for many different reasons. Some reasons are:
- Gold is the only form off money that has not been destroyed through 5,000 years of history.
- Gold is becoming money again.
- Gold is currently undervalued
- Gold has proven during centuries its capacity to gold value and to protect against inflation.
In what countries is Bitgold available?
- Free to open an account.
- Free to store your gold.
- Free insurance protection for your gold.
- When buying or selling gold, a 1% transaction fee applies.
- Physical gold redemption fees are $25 + any additional shipping, handling and insurance costs.
How is gold priced?
Gold at BitGold will always be priced within 1% of the official spot price. Gold’s ‘spot price’ is regarded as the explicit value of gold at any given time in the marketplace. We do this using our proprietary Aurum Technology. In real-time Aurum obtains pricing feeds from precious metals dealers, bullion banks, and mining companies that quote bid/ask spreads in various vaults around the world. Aurum ensures you get the most accurate price available.
Where is your gold stored?
Once you purchase your gold online you will have the option to store your gold at any of BitGolds partnered BRINKS vaults. BRINKS is one of the most trusted names in vault security with roots tracing back to 1859 and is fully approved by LBMA (London Bullion Market Association) and COMEX (New York Mercantile Exchange division Commodity Exchange, Inc.). The vaults are located all over the world, including Toronto, Singapore, Zurich, Hong Kong and London.
What most people find difficult when they want to buy gold is transparency. How do they know they are getting the right price?
BitGold Inc state that they aim to take transparency and accountability seriously. All aspects of their technological architecture are designed to protect the security of a physical and permanent asset, we are simply an operating system for your vaulted gold.
How safe is Bit Gold. How legit is it?
You can find plenty of scam or fake websites on the internet that claim to invest in or hold gold on your behalf. So what makes Bit gold any different?
BitGold in my opinion has the required credibility to be considered a genuine gold investing platform. Here are some reasons why I think it is safe to buy gold from BitGold:
- It is supervised by the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) as a Dealer in Precious Metals and Stones.
- The company is listed on the Toronto Stock Exchange
- The company is audited by PriceWaterHouseCoopers, one of the worlds biggest and ost respected accountancy firms
- Legal requirement for .995 (99.5%) pure gold -Their Corporate By-Laws require that we must buy or sell assayed and stamped .995 pure (99.5%) or better bullion-grade gold for the benefit of customers from an approved list of Refiners and Assayers whose gold meet the minimum specification set by the London Bullion Market Association (“LBMA”) or New York Mercantile Exchange division Commodity Exchange, Inc. (“COMEX”).
- 100% insurance coverage on gold.
- Real time audit of gold – this insurers they do not run some type of Ponzi scheme.
- Military Grade Encryption -The BitGold Platform uses military grade encryption (RSA 4096 and AES 256) to secure your account and personal information.
- Backed by Credible Investors – As well as being listed on the Toronto stock exchange, BitGold is backed by leading investors including Dundee Capital Markets, GMP Securities and Clarus securities.
Who is BitGold good for (Advantages):
- People that want to use an alternative currency (gold) for transactions.
- People wanting to put their savings in gold as opposed to paper currencies which are being devalued by the day.
- Investors looking for a hassle free way to invest in gold.
- People looking to buy and store gold in a secure location.
- Investors wanting to buy gold in a cost-effective and efficient manner. Unlike other Gold dealers who charge money to store your gold, gold storage is free with BitGold which makes this a very cost effective way for long term investors to buy gold.
Who is Bitgold not good for (Disadvantages):
- The price is not the best for those wanting to buy physical gold in small quantities. This is because the fee together physical gold delivered is $25 + any additional shipping, handling and insurance costs. This is feasible for a large gold order of say over £1000 but not very good for a smaller order
- People wanting to invest in a range of precious metals. As Bit Gold only deals in gold, it is off putting for people who want to invest in other precious metals which hold value like silver.
My Experience so far
I have been wanting to invest in physical gold for some time now and once i heard about BitGold, I thought it was worth signing up as account opening is free.
The sign up process is relatively simple and straightforward. Its is a 3 step process:
- email verification – once you enter your email address, you will get an email which has a link you need to click onto verify your email address.
- mobile verification – enter your mobile number and a 4 number pin is sent to your phone.
- enter basic info – like your name, date of birth, address and currency you want to use.
Once you do the above, your account will be set up. This is how the BitGold dashboard looks like. (click on picture to get a clearer version)
Buying gold with Bitgold is easy. All you do is click on the deposit button on the top right hand corner of the dashboard. You next have to chose which location you want your deposit to be stored at and then you chose what payment method you want to use as below.
You are able to send payments to people as seen below:
If you have gold in your account, you can redeem it by bank wire, credit card or by obtaining physical gold.
What struck me about about Bitgold is the ease of use of the whole website and the simplicity of buying, selling and transacting in gold.
You are able to keep track of your gold holdings in real time online which is an added benefit.
I personally see BitGold going from strength to strength in the coming years. Many people including top economists are losing faith in fiat or paper currency. This will lead to them demanding a currency that is backed by something, that something being gold. In my opinion, BitGold is ahead of its time but it has seen the future and it will become popular over time.