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.