BitGold Lights Gold's Fire
In July of 2011 I took my niece to Colombia to visit a copper/gold project. She loved the country, found a boyfriend and started a business. The copper/gold company hired an idiot as a manager, he blew the company sky high and it faded into the sunset.
I met an interesting young man on the trip, a kid really. He was 25 and managed money for himself. His family has money. When it came time for college for him they were prepared to fund any school he could get into. I figure he’s got an IQ in excess of 150. I’m in Mensa and he’s a whole bunch smarter than I am.
He declined their offer and asked for the money in cash. He wanted to use it to trade in the market. And you may be thinking to yourself, “Yea right, 18-year-old kid starts investing in the market! And how did that work out for him?”
You don’t want to know, as I said, his IQ is in excess of 150; he did really really really well. He was on the tour in 2011 because he was a major investor in the Colombian company. He saw the handwriting on the wall and bailed out before they tanked.
We drove around the project for a couple of hours and were together in a vehicle going to and from Medellin where we were staying so we had a chance to talk. He had kind of a screwball idea for starting a company with a gold-based money system.
He would solicit customers to deposit money. It will be converted at a favorable rate to gold and they can transfer gold in and out of the account and use a debit card for purchases. Instead of having your money in an account denominated in dollars or pounds or euros, your account would be denominated in gold. It’s like PayPal but using gold as a medium.
His name was Roy Sebag. Actually it still is.
As of May 13th 2015 BitGold went live and public. Many of the things they are doing are simply brilliant. Their symbol is XAU. That’s going to be easy to remember. They have an affiliate program so you are going to see banners for them all over the web. Everyone wants in on the action. The company did a money raise in February and another in April at $.90 a share. Sprott is a big investor.
BitGold has just over 36 million shares outstanding. Roy Sebag is the majority shareholder with just over half the shares. His partner, Josh Crumb, owns 1.64 million shares. Each of them takes an annual salary of only $1. As far as I’m concerned, they are overpaid. They should make their money in stock appreciation.
The stock opened at $2.50 on May 13th, dropped a little during the day and closed at $2.70. It opened at $3 on May 14th and closed for the day at $3.77, up 50% in two days. 100% of shareholders have made a profit. They are all happy.
I always wondered about Bitcoin. I don’t know anyone who actually understood what it was other than it being the hula-hoop of the day. Bitcoin was a fad, not a real financial product that actually solved problems for people. It peaked in price in late November of 2013 and I said it was a top at the time.
It was a pseudo currency not backed by anything and about as useful for transactions as shiny beads or bags of salt. It was worth only what some fool thought it was worth. I have never wondered how fools somehow parted with their money, that’s obvious. I always wondered how fools ever get in touch with their money in the first place. Bitcoin was a great way to separate fools and money. It was such a rip-off that even the DEA was stealing Bitcoins.
Governments are each trying to outdo each other in stupidity lately. Otherwise seemingly intelligent people try to explain how you can spend yourself rich as a national policy. Austerity has been reworded into some kind of four-letter curse. The money you deposit in a bank is no longer yours; you are a creditor of the bank. With worldwide debt at $200 trillion we can be assured that there will be bank failures and bail-ins. Wave goodbye to your money when you take it to a bank.
When I was studying economics we were taught that the way to get rich was to make more money than you spend. Now even countries believe they can borrow money without limit and are somehow better off. Banks want you to pay them when you loan them money. Give me $1,000 now and I’ll pay you $990 in a year and you take all the risk. What a great scam. Sign me up. Bonds pay a negative interest rate just as if countries don’t go bust.
BitGold restores gold to it’s most real and most valuable function, that of a store of value. You deposit either money or gold. It belongs to you, you aren’t loaning it to anyone. You can take it out at any time or put it in at any time. You own it.
I’m going to do a separate piece to explain BitGold. If you are not an American, you should sign up for an account. American financial rules mean American financial accounts are no longer welcome anywhere outside the US.
If you are an investor you should consider buying the shares. BitGold Inc. is going to be the biggest thing in the financial world shortly. It is the future for both banking and gold. While the company has just over 36 million shares, the float is somewhere between 3.5 and 4 million shares so it will be volatile.
Sign up here.
I was an investor in Loma Vista in 2012 that did the RTO that became XAU. I have bought XAU shares on the open market. I am biased and you should do your own due diligence.