Taking inspiration from Bitcoin, BitGold wants to make gold accessible and useful in digital payments and secure savings. It is essentially Paypal with gold. They are advancing the digital payments revolution by helping people securely acquire, store, and now spend gold with unprecedented simplicity.
BitGold provide users with a secure vault account to purchase and hold gold, the ability to make and receive instant gold payments, and a debit card for spending gold at traditional points of sale. All gold is fully redeemable as 1kg Bullion Bars or 10g GoldCubes.
Apparently investors like the idea. BitGold listed at 90 cents on May 13, and shares have since jumped to $3.77 apiece, with more than 4 million shares traded. The stock was up another 39% today, after their first day trading on the TSX Venture Exchange yesterday (CVE: XAU).
It is the culmination of several years of hard work by the founders, Roy Sebag and Josh Crumb, and is being backed by George Soros, Sprott Inc., Dundee Capital, Sandstorm Gold and other big-name financiers.
It is free to sign up for an account, free to send or receive BitGold and storage is also free. You pay a relatively small fee of 1% to buy or redeem gold, but it is insured by The Brinks Company against theft or loss.
The investor proposition is spelled out as follows:
Significant market potential exists across all geographies and all income segments for a transaction-accessible savings account based on gold as a store of value. BitGold believes that it can provide new leadership and innovation in a trillion dollar market by providing a fresh narrative, connecting securely vaulted gold to electronic payment networks that previously did not exist, and by harnessing the connectivity of a growing mobile-internet.
The BitGold Proposition is to deliver strong growth in our user base, building a global network for both savings and transactions. By empowering users, and by delivering more value to each individual than we expect to receive in return, we can build a network of lasting relationships in the world’s largest commodity-money market. We believe that investing in this relationship can deliver significant value to our shareholders over the long-term, creating a reflexive global-revenue model with a scalable internet service, while also benefiting an entire network of stakeholders.
One has to wonder if the government will simply shut down this operation as they did with e-Gold. And is certainly isn’t decentralized in the same way as Bitcoin, so lacks those benefits. Still, it is an interesting investment opportunity and has generated significant gains for investors thus far. Learn more about BitGold here.