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BitGold Review, is the gold-based debit card service all it’s cracked up to be?

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There have been a number of valiant attempts in the past to turn gold into a full-fledged tangible tradable currency. These have all failed so far, most spectacularly with e-gold that resulted in an enormous money laundering case, in fact the largest single digital money laundering case ever. Yet another attempt to establish gold as a fully legitimate, tradable, and exchangeable currency has been established in recent years. This is called BitGold.

What is BitGold all about?

Unfortunately, for the sake of the confusion and lack of clarity the name has caused, BitGold has no connection whatsoever to BitCoin. The only similarity between the two of them is the close name proximity. BitGold is actually an online platform that allows account holders to save, store, trade, pay with, and give to others gold in the form of a currency. The BitGold program operates similarly to a bank account. Individuals with accounts can make deposits from their own national currency, and then their money is changed into gold and denominated and valued as such.

The technology involved is pushing the limits of the digital payments processing system as it assists individuals with securely buying, holding in secure storage, and also spending their gold with uncharacteristic ease. A BitGold account may be opened up in a matter of minutes, and it is totally free to both open and maintain.

Account holders benefit from a number of conveniences, such as:

• A secure and individually segregated vault and electronic account in which to buy and store gold.
• The capability of receiving and making instantaneous payments in gold.
• A prepaid credit card that allows holders to spend their gold at any place that accepts credit cards.
• The ability to redeem in physical gold owner’s electronic gold currency for 10 gram GoldCubes or 1 kilogram gold bars.
• The capability of funding the account through a network of proprietary ATM’s or via ACH payments from 9 of the 10 biggest US banks as well as by credit card payments.
• A means for foreign users of BitGold to deposit funds to their accounts via international wire transfer, Interac for Canadians and China Union pay for Chinese customers.

A simpler way to understand BitGold is to compare it with a similar means of payments and transfers known affectionately as PayPal, called the most beloved way to pay and be paid. Imagine if PayPal were denominated in gold grams instead of U.S. dollars or Euros. Much like with PayPal, BitGold account holders are allowed to receive or transfer with other users of the BitGold system, and to spend it at any merchant that accepts credit cards using the BitGold Prepaid Card, very similar in its operation to the PayPal Debit MasterCard.

A new feature of BitGold is the ability of account holders to use their mobile app to trade, store, and purchase with the best performing currency of the 21st century in the palm of users’ hands. This mobile platform represents the only app available for purchasing gold online simply, for receiving and sending payments in it at no charge, and for rewarding users who bring their family and friends into the family to enjoy the BitGold experience.

BitGold CEO, Founders and Management Team

The management team of BitGold is no secret. Their website publishes names, profiles, and pictures on each one of them. Their board is made up of individuals who possess literally decades of hands on experience with investment management, financial services, legal, economics, software engineering, compliance, security, cryptography, design, and marketing.

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Among their officers are CEO Darrell MacMullin (former head of PayPal Canada), Founder Roy Sebag, Co-Founder and Chief Strategy Officer Josh Crumb, and Chief Technology Officer Alessandro Premoli.

How Does BitGold Work?

BitGold works from start to finish with unusually easy to follow step by step instructions and no sneaky hidden charges. Setting up an account is always at no charge. The company provides the most advantageous gold prices in the business at the most competitive rates for selling and buying gold. BitGold claims to be the only existing platform that permits individuals to spend the gold they amass within their gold account, making it truly a working currency.

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Once users open their accounts up, they make deposits to the account via credit card deposit, ACH deposit, bank wire transfer, a deposit to one of the BitGold ATM’s, or one of several other specialized services. Gold is then purchased for the locally denominated currency amount of the account holder’s deposit. The gold is guaranteed to be within a 1 price range of the official gold price on world markets. The gold is then stored for the customer for free. Now that the customers have money denominated in gold and backed up by deliverable on-demand gold in a secure and audited vault, they can send money transfers, buy things with their BitGold pre-paid credit card, do automated payments, and make online payments all from the convenience of any secure Internet connection or via their mobile phone on their new app.

BitGold now also offers their Recurring Savings Plan. This permits account holders to set up a pre-planned and -set amount that BitGold will draft from their accounts at whichever time interval they wish. The money then goes directly into the owners’ BitGold accounts, where it is transferred immediately into gold. These savings deposits can be arranged to be contributed by day, week, or month via the owners’ favorite deposit means.

About BitGold Fees

There are never any commissions or fees for any of these transfer or payment services. This table will show the fees for withdrawing physical gold:

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How Does Gold Storage Work?

bitgold storageThis is a major concern for anyone who has been burned by Bitcoin’s colossal failure Mt. Gox, the e-currency’s largest broker that spectacularly collapsed, costing its account holders over $500 million in losses. With BitGold, the major difference in storage is that the company actually holds segregated and physical gold holdings in secure third party vaults for every one of its customers. The gold is actually stored in Brink’s depositories found in major gold-holding centers around the world— London, Zurich, Hong Kong, Toronto, Singapore, New York City, and Dubai.

Should owners determine that they want to take physical possession of the gold they own in the account, BitGold will happily oblige them. This works by BitGold simply shipping the owners their gold in the form of 10 gram GoldCubes or 1 kilogram gold bullion bars. The physical vault redemption involves a cost of $25 handling plus the cost of shipping and providing insurance to the mailing address of the customer.

Does BitGold Offer Both Debit and Credit Cards?

The BitGold prepaid cards work anywhere credit cards are accepted. They also have a feature that allows users to withdraw their funds from ATM machines in local currencies. This makes their cards as practical and functional as debit cards and credit cards.

Is BitGold Potentially a Scam or Fraud?

As for the question of whether BitGold is a scam or not, prospective users of the platform can consider the leading investors and companies that are backing it. Among these well-known names in the investing and security industries are such firms as Soros Brothers Investments LLC, Sprott Inc., Clarus Securities Inc., Sandstorm Gold, GMP Securities, Dundee Capital Markets, and GMP Security.

The company also touts a number of legitimizing factors and characteristics on its website. They are a Canadian Company that is supervised by FINTRAC. They are audited by Big Four accounting firm PriceWaterhouseCoopers, store all their gold at Brinks’ Secure Gold Depositories, and maintain 100% insurance coverage on all of their gold holdings which are independently audited on a regular basis. BitGold also maintains a legal segregation of its customer’s accounts and assets, has a daily audit of all transactions and electronic holdings, and performs separate real time auditing of its gold.

BitGold and GoldMoney Inc Merger

On July 20th, BitGold announced that it had successfully completed its $60 million GoldMoney acquisition and created the world’s first global platform with a gold-based financial service operations and gold reserves. This new combined company is building out the world’s first global, gold backed-reserve financial services network and increasing its global share of markets in international remittances, transfers, payments, wealth management, and cross-border and cross-income savings.

BitGold 2015 Promotion

To encourage new account holders, BitGold offers its new users a first deposit 5% bonus. This is worth as much as 2.5 grams of gold or US dollar equivalent of approximately $100. To be eligible, visitors have to make their initial deposit in ten minutes or less of opening their account.