BitGold Update
(one year later)

Dateline: 5 August 2016

It was exactly one year ago that I posted here about BitGold... Considering BitGold: It's Not a Cryptocurrency. BitGold was only a few months old and I really liked the idea. 

Today I went to my BitGold page and it had changed completely. Now it is Goldmoney. I'm not sure what that means to me, if anything. The concept appears to be the same.

The screenshot above (from the Goldmoney web site) charts the value of gold (in grams) over the one year that I have had a BitGold account. I purchased my first grams of gold on August 5, 2015 for $35.09 a gram. The price today is $43.88. That is a 25% increase. 

I put a total of $2,500 into BitGold from August to December 2015. Then I stopped. That was all I cared to risk on a new idea like BitGold. I also stopped because I wasn't sure how to handle the tax implications. Today, my $2,500 investment is valued at $3,094.28.

There are people who remain skeptical of BitGold (or Goldmoney) because it relies on other people (the Goldmoney company) to hold the gold and be completely trustworthy. They say the best way to own precious metals is to actually have them in your possession. 

I completely understand that skepticism. I feel it too. And I agree with the saying that the best way to own precious metals is to have them in your possession. Nevertheless, I still like this BitGold/Goldmoney idea as an option for diversifying one's savings. 

So, I'll just leave my 70.443 grams of gold in the Brinks vault in Zurich, Switzerland (where I chose to keep it). Maybe it really isn't there. How would I know for sure? But that's what they tell me. And it's kind of neat to be a country hick in upstate New York, USA, with my very own Swiss bank account. 


P.S. You can watch a realtime audit of Goldmoney transactions at This Link.


Sunnybrook Farm said...

The biggest fear may be that governments start regulating and confiscating the bitgold/coin. Here is an article that I saw today about bitcoin. It seems they will try and screw up a good thing which is what governments do, so long as members of the elite prosper that is.

Herrick Kimball said...

Sunnybrook Farm—

Thanks for the link. I read Zero Hedge every day. :-)

Bitcoin operates OUTSIDE regulatory environments. BitGold works WITHIN regulatory environments. You can bet governments are going to figure out how to tap into the Bitcoin phenomenon and make sure they extract some of that wealth. But BitGold is already set up so the government gets their share of any profits.... when I cash in my gold, the IRS wants their cut.

It looks like BitGold is now history. It was a bad name anyway. The name leads people to think it is a cryptocurrency, and it isn't. It's a gold bank. So Goldmoney as a name makes more sense.

I see that as of last month Peter Schiff has merged his gold operation with the new Goldmoney operation. Schiff has quite a bit of credibility in my mind. That's a further validation of the Goldmoney platform for saving and spending outside of the traditional banking system.

Everett R Littlefield said...

I have mine buried all over the Island in lead lined boxes! SO the gobbermint will play hell trying to find them.

Herrick Kimball said...

People have been burying their valuables for centuries (because it's a good idea). Your island forbears probably did the same thing, Everett. I'll bet BI has more stashed wealth underground that what you've put there! :-)