Bob Moriarty discusses a new Canadian Public Company called Bitgold
BitGold Explained (Full disclosure, Bob does own shares in this company.)
Bob Moriarty
Archives
May 15, 2015
BitGold Inc. went public a couple of days ago on May 13, 2015. BitGold is their only product. BitGold is a Canadian company based in Toronto. You can sign up for an account here.
Here are some answers you need to know to understand BitGold.
- BitGold is a financial platform where your money is denominated in gold. It’s like any other bank account in that you can deposit money that is converted at the current rate for gold and you can spend it in any currency or transfer it as gold.
- BitGold is not a pseudo currency or cloud currency. It is real gold stored in insured Brink’s depositories located in Zurich, Hong Kong, London, Singapore, Toronto or Dubai. It is 100% insured.
- The gold belongs to you. BitGold does not rehypothecate or otherwise pledge your gold for any reason at any time. BitGold does not hedge. It’s your gold.
- Think of BitGold as PayPal but denominated in grams of gold. You can transfer or receive BitGold with any other BitGold user. You can spend it anywhere.
- Due to American financial regulations, BitGold is not currently available to US residents.
- BitGold will be issuing Debit cards for BitGold account holders in the near future. While your account is in gold, you can spend money anywhere in the world in the local currency with the card.
- BitGold maintains a stock of gold in their own account. When a BitGold account holder wants to buy or sell gold, they buy or sell it to BitGold at the current price of gold. BitGold charges a 1% fee for either buying or selling gold. That’s how they make their money. For the account holder BitGold offers the lowest price to buy gold and the highest price to sell gold and 100% liquidity.
- BitGold account holders may deposit money into their account via Bank Wire transfers, credit card or debit cards, China Union Pay, Interac or SEPA.
- BitGold account holders may transfer money out of their account at any time based on the current price of gold. Should account holders want physical gold, they can take delivery in either 10-gram cubes or 1-kilo bars. There is a small, about $25 CAD redemption and mail fee for either the 10-gram cubes or 1-kilo bars.
- BitGold has no counterparty risk. You own it. It’s yours.
- There are no storage fees.
- There are no fees other than the 1% in and out fee and the $25 CAD fee for physical delivery.
- When the banking system crashes, your gold is safe. No bail-in possible.
- The safest way to own gold is to hold it in your greedy little mitts. BitGold is the 2nd safest way to own gold.
- Governments around the world have declared a war on cash. You have the benefit of having access to your money in the form of gold. You effectively have cash without having cash.
You can sign up for an account here.
BitGold
XAU-V $3.77 (May 14, 2015)
36.6 million shares
BitGold website
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Bob Moriarty
President: 321gold
Archives
321gold Ltd
It will truly be interesting, Shad!
PEOPLE FIRST
I’ll be researching who runs this outfit.
This is of utmost importance.
Thanks for posting – most interesting.
Let us know what you come up with Irwin.
Thanks, my friend.
Founder & CEO – BitGold Inc
“Roy Sebag is the Founder and Chief Executive Officer of BitGold Inc. an online financial platform providing free global payments and secure savings in physical redeemable gold bullion. Mr. Sebag founded the company in 2014 along with Joshua Crumb. He also serves as the Founder and Managing Principal of Braavos Capital, an international private investment organization engaged in value-oriented investments across a variety of asset classes and industries. Mr. Sebag also serves as the Founder and Chief Executive Officer of Natural Resource Holdings, an investment company engaged in the acquisition, development and ownership of natural resource assets with favorable long-term fundamentals. Mr. Sebag also serves as the Founder and Chief Executive Officer of Loma Vista Capital a Toronto Stock Exchange listed special purpose acquisition vehicle (SPAC).
“Mr. Sebag previously served as founder and portfolio manager of Essentia Equity Ltd. an investment partnership founded in 2004 that engaged in fundamental long and short equity investing in distressed, event-driven, and natural resource related opportunities. At Essentia, Mr. Sebag developed a successful track record analyzing highly charged binary events including bankruptcies, reorganizations, and geopolitical uncertainties. From 2004-2010 Essentia Equity delivered superior risk-adjusted returns and was quoted in financial media publications including: Barrons, Bloomberg, Globes, The Marker, and Sum Zero.
“In 2012 Roy and Haley Sebag established the Braavos Foundation which makes philanthropic investments supporting exceptional organizations that tackle important social issues. Braavos Foundation has supported organizations including: Gordon Parks Foundation, Global Witness, Seeds of Africa Fund, Pencils of Promise, Foundational Questions Institute, and several others.
“Mr. Joshua Dale Crumb, also known as Josh, is the Co-founder of BitGold Inc. and LEC Minerals Inc. Mr. Crumb serves as Chief Strategy Officer of BitGold Inc. He serves as a Secretary of LEC Minerals Inc.
His career has included roles in project/construction management, engineering design, corporate development, and metals market research and strategy. Mr. Dale served as the Chief Operating Officer of Loma Vista Capital Inc. from August 2014-December -2014. He served as Director of Corporate Development at Lundin Mining Corporation and served as its and Senior Business Analyst.
Mr. Crumb served as Senior Metals Strategist at Goldman Sachs, where he analyzed commodity market dynamics, investment strategies, and corporate risk management programs in the Global Economics, Commodities and Strategies research division in London. He served as Research Analyst at Goldman Sachs Group Inc., Research Division. He served in various positions within Lundin group of companies and served as Special Project Analyst for group chairman Lukas Lundin.
He is an engineer and mineral economist with a wide range of executive experience in the mining industry.
He was an Executive Director at Goldman Sachs International, working for the Global Economics, Commodities and Strategies research division in London, England.
He has been a Director of Loma Vista Capital Inc. since June 21, 2012.
He has been an Independent Director of Zazu Metals Corporation since July 21, 2011.
He has been an Independent Director of Silver Bull Resources Inc. since February 22, 2012.
He has been an Independent Non-Executive Director of Tengri Resources since April 14, 2015. He serves as a Director of Natural Resource Holdings, Ltd.
He served as a Director of Astur Gold Corp. from May 2011 to March 2014.
Mr. Crumb holds a Bachelor of Science degree in Civil Engineering and Master of Science in Mineral Economics from the Colorado School of Mines.
http://www.bloomberg.com/research/stocks/people/person.asp?personId=58765875&ticker=LUN:CN
CoinDesk.com Jan 28/15
“Toronto-based gold and bitcoin startup BitGold has gone public following a reverse merger with mineral exploration company Loma Vista Capital.
“BitGold will retain its name, but halt trading on the Canadian National Stock Exchange as it migrates to the Toronto Stock Exchange. As part of the deal, the company said it will raise C$6m in subscription receipt private placement, with an additional C$5m worth of warrants to be exercised later.
“The pending C$6m subscription receipt sale includes commitments from Canaccord Genuity Corp, Clarus Securities, Dundee Securities and GMP Securities. However, perhaps most notably, the lead order on the round was completed by Sprott Inc and its individual directors, the $7bn asset management company formerly helmed by famed portfolio manager Eric Sprott.
http://www.coindesk.com/sprott-bitgold-public-stock-market-deal/
I also find this very interesting, DT.
I would like to hear Bob interviewed on this subject.
ditto
There’s this, but I need more convincing.
http://www.321gold.com/editorials/moriarty/moriarty051515.html
A fee of 1% every time the debit card is used?
I have to ask why would someone use a card where they are charged?
Do doubt that will be a major stumbling block? I do not really get the concept. Sure are less complicated ways to secure your money with metal. Seems like a bunch of smoke and mirrors. Systems seems administratively complex.
Al: For every real product and company, there has to be some way for them to make money. Since they aren’t hedging or leasing or loaning the gold, all of which create counterparty risk, they make their money on a 1% fee for buying and selling. If you use a credit card overseas, you spend more on the bad conversion rate and bank fee.
This is the future of banking, no smoke and mirrors, just a real business plan and they offer something of real value.
Do you really want to keep your money in a bank and risk a bail in? What’s that going to cost?
Al, you are charged every time you use any credit card. Don’t think for a moment that the fees the merchant has to pay aren’t passed on to the consumer.
It’s a racket and the clueless masses actually get upset with stores that don’t accept credit cards.
Yes
I guess the ipo was @ .90 cents, started trading publicly yesterday at 2.50.
I bought some, bitcoin went to $1000? about that anyway, and in an article I read goldbugs are not the people most interested. A gold backed bitcoin, this one will be interesting to watch and see what people actually think of gold tansactions.
My guess is this goes thru the roof, if the gold doesn’t get confiscated that is.lol
It has nothing in common with bitcoin. There is no reason to expect the share price to behave the way bitcoin prices did. If Bitgold shares do well, it will be because it is a good business -something BC was not.
I understand your point, first thing in common they have is their digital, second thing is “bit”, will any bitcoin buyers look beyond that? Why did bitcoin go to $1000?
Remember phot? w how much that go up when medicinal pot happened? Why not other pot companies? because people don’t inform themselves.
Another way to look at bitgold is what ultimately happens to gold, if nobody cares about gold, bitgold should go to about zero.
If people still think gold really is “good as gold” there should be real demand for the shares, which there are less than 40 million at his point.
lol, the way I see it, if I don’t have a grand to roll the dice on something that could pay what 4 hundred thousand? 400 shares at 2.50, what am I doing in the market? lol
BC was not a share in a business because BC was not a business. There is no reason for BG shares to act anything like BC because BC’s price was not driven by profitability it was driven by gullibility.
I think the concept is good but hardly revolutionary. If the powers that be don’t have a problem with it like they did with Turk’s GoldMoney, then it might be lacking something.
WMK: I suspect the PTB may indeed have a problem with it. It’s a simple choice. Do you want to keep your money in a bank with counterparty risk and currency risk or do you want to keep your money in gold without counterparty risk but with currency risk?
I think that’s real easy choice and it will be getting easier as Greece tanks the Euro.
Thanks. I have to admit that its credibility went up when I found out that they don’t take U.S. residents.
If nothing else, it looks like an appealing and competitive way to diversify one’s gold holdings.
I still need to take a closer look at it.
Well WMK, we all gamble on what looks like a pay off to us.
If you don’t think it will “hit” I guess you don’t buy it. I think it might, so, I bought some.
I think it is possible people decide to do business in gold, heck, people decided on doing business with bitcoin didn’t they? lol
I didn’t say that the business won’t be a success. Just don’t expect the share price to move in quite as an absurd fashion as BC did.
Thanks bb
I agree with you wocsom morf knarF
I do have a few questions. The main one is why take an anonymous asset and turn it into something else?
Al:
What do you mean “anonymous asset”? I don’t understand the question.
Maybe Al means gold buried in the flowerbed versus gold held where there’s a record of it tied to a name.
That would make him a marigold lover…………
OK, I’ve got it now, thanks. I think you are right. Al is saying it’s nice to know you have an asset that no one else knows about and I have to agree.
But having the alternative of buying and selling gold with a 1% premium that is 100% insured can also be attractive. If you buy physical gold and shove it under the mattress only you know about but you are going to pay a 5 to 10% premium going in and going out and if you are in the US there will be a record of all sales and purchases.
Bob, Al,
We do not live in a world where any level of privacy exists. Bob I know you know this, Big Al stills believes that Leave it to Beaver exists. He needs more time and theirs not enough of that to ever convince him otherwise.
Metals will never again be completely private because you have to buy them from a business that is hooked into the matrix of modern finance and they keep records of all sales and buys.
Additionally, if your like most rational people that understands gold/silver is an asset that will be bought and sold at some point in the future the clarity comes into view quickly.
You or your kids/grand kids at some point if handed down, when time or circumstances dictate will 90% of the time sell those same physical holding to a business that maintain records of those sales.
You may have an element of privacy from your family members, or the deranged idiot that lives next door to you from knowing about your stash, etc., but in that realm of anonymity from a big brother stand-point, that’s a ridiculous pipe dream.
If anyone thinks they will ever be able to transact in these metals privately is a dream built upon a ship fools guided by a Captain that is a fool and drunk.
The introduction of a new option like Bitgold if found to be safe and affordable and not destroyed by government intervention will revolutionize the gold holding and transacting industry. The world will adopt this effect option of side-stepping banks and their monopoly crap.
I happen to agree with Matthew 1,000 %. The fact that these guys who created this gold product using real physical gold, excluding the Nazi, tyrannical leviathan known as the United States and its markets and going as far as excluded Americans from even opening an account or having anything to do with it gives it a stunning and monumental level of authenticity and seriousness that speaks volumes even as a new start-up.
Since I have a stupid government that is attached to my name that no one likes or trusts anymore, I can’t use bitgolds services as of today.
So I’ll just have to buy the stock in Canada which is exactly what I plan to do.
V
V, you get the feeling I get about this? it could be big?
important maybe too.
bb, if this lasts a year or two, which it will, and overcomes the typical growing pains and really gains traction. Big won’t even begin to do justice.
These smart young guys if allowed to operate in a free market type environment and not be infected by the destructive nature of over regulation by the State will never have to enter the US markets.
The rest of the global population will turn them into a multi-billion dollar behemoth with-in just a few years.
V
Vortex:
You understand BitGold perfectly and 100% of your comments are true. The only private gold/silver you will ever own will have been bought years ago. Every transaction you ever make from here is known.
We have knowledgeable folks on both sides of the gold price & some are going to be very wrong. Bob Moriarty, Doug Casey, Rick Rule, Erick Sprott say the lows were put in last Fall. Harry Dent, Gary Savage & others I can’t remember say sub-$1000 coming before the lows are in. Gary in particular has said on this site for over two years price points of 1030, 1070 and now sub-$1000…….ya gotta respect his not waffling as others do.(You know the type, gold is going up for sure but it might go down or even stay the same…..useless commentary)
This little read I got from Casey Research lays out the two points of view fairly well.
http://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/sr_pdf/GoldDeadorAliveSR.pdf
I agree with those guys but have made it clear that I am more certain that silver and the miners have bottomed. I’m sure many are playing short gold, long silver and the miners.
I agree with you wocsom. I think Silver is bottomed and more reflective of supply and demand fundamentals. Gold will be the geopolitical/economic pawn of choice.
You forgot the most important people. Goldman et al. saying a $1050 or there abouts. Sprott et al are the equivalent of fruit flies to Goldman. The only hope it doesn’t dive to $1050 is China/India/Russia. They have the ability to stomp out Goldman et al. but their timing for wanting to see a serious climb in the gold price may not be here yet but they be happy to see it range bound where it is at for a while longer.
And of course you follow Goldman and their recommendations because you know they have your interests at heart?
Would you like a really good deal on a bridge?
Hard to ignore Goldman. Analysts don’t control the market. Banks do. No offense intended.
None taken, Peter R!
Peter R:
Banks don’t control the markets either. They may massage prices both up and down for their own account as they do with every financial asset but supply and demand always win in the end.
Analysts don’t even claim to control the market, they just make their predictions. I predicted a low in November and so far, so good.
Goldman would be the last people I would listen to. You know they are talking their book all the time.
massage – control (potatoes – potaatoes). Hard to ignore Goldman. I completely agree with talking their own book and at some point they will be very wrong to their own benefit.
Ditto Bob M ……on the last people to listen to..(Goldman Slaker)
Peter has a point…….
There will be more inflation short term…….ie. increase real estate taxes , insurance increase , food, increase in rent, increase in student debt………items that” normal” humans require in the “system”. Plus the desire of the FED to want inflation. Deflation is not going to happen this year….. jmho
Max Keiser talked about Camerons statement that following the law is not enough.
It really is looking to me that those fema camps will be used at some point.
Man, I hope you are wrong, and I think that you are.
They didn’t build them for no reason Al.
We may have civil disorder yet.
Going cashless,raiding pension plans, controlled markes, civil forfeiture,ndaa, on and on
We follow the same route of the fascist of the 40s, they used their camps, why wouldn’t we use ours?
Heck, ask our Japanese citizens that were around in the 40s if we use camps. lol
Those that study history get to watch those that don’t study it, repeat it. lol
I really don’t like to think of my grandkids future. Sad, they wont even notice anything.
There are places around the USA which fit the description of the fema camps…..you just have to know what you are looking at……some are converted AMTRAC facilities and some are VA Hosp…..Check for the barb wire facing in….is the key. The barbed wire does not face in to keep you out, but , keep you in.
BUT, do your own homework………..OOTB
Competition already there ?
http://karatbarsmoney.com/karatbars-debit-cards-with-account.html
Thanks Gabriel.
Seems like a pretty expensive way to transact personal business!
Seems like there is competition already. If you purchase the stock, you’re just buying another company with a chance that people will gravitate toward gold backing transactions along with protection against some currency fluctuations. It appears the stock has got ahead of itself.
interesting, someone left a karatbars flyer in my mailbox today.
There does appear to be a difference between the business plan of karatbars and bitgold.
Maybe you could get someone from the company to appear on an upcoming weekend show ?
Interesting concept. I think they were getting some attention at PDAC this year and were camped out at the Sandstorm Gold booth.
It will be fascinating to watch to see how the idea takes hold. Thanks for posting Bob’s thoughts on it.
Cheers!