Topic: [BTCT.CO] BTC-GOLD: 100 shares = 1 gram gold bullion - Closing - page 2. (Read 12991 times)

On grams/oz.

Isn't there an obvious basis to decide which to use - what the gold you buy is measured in.  If you're buying 5g bars then use grams.  If 1oz bars then use oz.  The gold you buy needs to ideally be an exact multiple of the value of a share - so anyone wanting to trade in knows a round number of shares they need (not 500 shares + an extra payment equivalen to 0.31 of a share or whatever).

Or is that putting the cart before the horse?

Thank you.



Absolutely. This is addressed in the FAQs section (second post). The BTC and LTC assets will maintain separate bullion deposits and will never intermix.

The BTC-GOLD bullion deposit and shares released spreadsheet is maintained here:
https://docs.google.com/spreadsheet/ccc?key=0AqLxDN0JzEUNdE9vNG1zZWlrUTIwbFhrZzVtSUowc3c


This was a tough decision to make. One of the goals of this fund is to make owning gold bullion affordable to the masses. I had to find out a way to make share prices that are easy enough for the "average" person to afford, while at the same time maintaining a unit that is easy to figure out exactly how much bullion you own according to the share you have.

Making a share affordable:
With the price of gold so high, dividing one troy ounce even by a factor of 100 makes the individual share price higher than I was planning for.
With each share being .01 grams, each share price is about 31 times less expensive (or 31 times more affordable, if that's how you look at it).

Less confusing:
Troy ounces are the world's standard in precious metals. But like imperial measurements, ounces are just weird to people unfamiliar with it. And troy ounces are different from the avoirdupois ounce (which is used in the USA) just to make things more confusing.

However, I would like to hear more opinions on this issue. If you (yes you! anyone reading this post) find this fund intriguing, but would rather have ounces over grams; please reply and voice your thoughts.
There is still time to change the asset contract.

Congrats! Good luck on the launch! You stated you were waiting for receipt of PM, can an investor be assured then that you won't double sell AU denominated in LTC and BTC?

I too wish you'd define shares around fractions of an Ozt rather than bringing grams into it, as it gets rather messy, but it's a minor concern. You get my vote.

After months of glbse garbage. I am finally able to release this asset on btct.co.

After approval and shipment of the first bar of gold bullion, shares will be released.

Correct all shares are based on the weight in grams. ( 100 shares = 1 gram gold bullion )


A gram is a standard measurement of weight in most of the world, but not usually when dealing with precious metals.
For reference there are 31.1034768 grams in one troy ounce.

Who said anything about ounces? I see measurements in grams.

I'll get in on the LTC-GOLD side.  Thanks for setting this up!

It's important to define this as troy ounces or we are going to have issues.

There will be no set upper limit to the amount of bullion held. The actual amount of bullion will depend on market activity. If there is a large number of people willing to buy, but little to no sales, this would indicate more bullion (and shares) would be needed.

The gold bullion would be stored in a safe in my home.
If the amount of bullion becomes significant, I will look into insurance and other safety measures at that time.
A motion would be raised to determine how to cover the cost of these additional measures.

There are only two times the assest will deal directly with shares:
When new bullion is added, a sell wall will be created for the new shares.
When a bullion withdraw is made, the corresponding shares are also removed from the market.
After that, the share price is determined directly by the market.
Please remember each share is gold bullion, which is always at a higher price than the spot price of gold.

The only time a buyback would ever occur, is if the asset were to shut down. In this case, shareholders would be given the chance to withdraw bullion (if they have enough shares), and the rest of the bullion would be liquidated and paid out to the remaining shares.

Do you have an upper limit to the amount of gold you will hold?

How secure are your gold holding arrangements?

Will you be running a bot on the GLBSE market to keep the shares following the BTC/XAU price ratio? Will you be buying back shares? If so, what will the spread be?

No shares will ever be sold unless I have the actual gold bullion in my reserves to back them up.
When shares are redeemed for a bullion withdraw, those shares are removed from the market.

I am using my personal funds to purchase the gold bullion upfront. When it arrives, the shares will be issued. When the shares are sold, my personal funds are paid back.


More and more gold bullion will be kept in my reserves and more shares issued as market demand increases.

So is your plan to buy the gold and then sell it as shares, or sell the shares and then use the proceeds to buy the gold? (Your statement sounds like the first one, but I am just checking to make sure everybody is on the same page.)

Will you start to purchase more gold as soon as you sell the first batch of shares?

Yes, I will post photos of the gold bullion.


I have one 5 gram bar being delivered. I expect it to come in next week. And pending Nefario's approval the shares will go live on Oct 1.

he is gettin to run away with your gold when he got enaugh

I believe the auditing here will be done through redeeming your shares for gold in the mail.

I don't think pictures of gold will do any good considering they can be easily forged.

Will you post pictures of the physical gold you are holding?

Thanks.

Waiting on Nefario to approve the asset on GLBSE.

This will be a good method of speculating on Gold through BTC. I wish you luck, OP.

I don't want to have the most expensive shares on GLBSE.

With 1 share = 0.01 grams, it is very easy to:

• buy a few here and there (for smaller investors)
• know exactly how many grams you own

Why are shares 0.01 g instead of 1 g? Or since the smallest incriment is 5 g, why not have shares represent 5 g?