Topic: [BTCT.CO] BTC-GOLD: 100 shares = 1 gram gold bullion - Closing - page 3. (Read 12991 times)

Good questions odolvlobo.



This security sells shares of gold bullion. I plan to make a small profit the same way that any other bullion dealer would. A more precise answer is found in the next question.



First, I have never specified a premium or a percentage.

Like I said in my answer above, I am selling shares of gold bullion, not just gold. Buying gold bullion always cost more than the spot price of gold because bullion goes through a process. The gold is purified, it is then weighed and then minted.
This "fabrication and procurement" process always adds an additional cost on top of the spot price for gold, and is included in the price per share.

As mentioned above, operating expenses are included in the price per share as gold bullion shares are released.

Bullion Inventory:
https://docs.google.com/spreadsheet/ccc?key=0AqLxDN0JzEUNdE9vNG1zZWlrUTIwbFhrZzVtSUowc3c

FAQs

Why would I want this?
This is probably the easiest and fastest way to buy gold bullion with your BTC, especially for someone who can't afford to buy all at once.
If your goal is to buy and accumulate physical gold bullion, you can purchases shares a little at a time until you have enough to withdraw.

You can use your shares as collateral because they are always backed by physical gold bullion.

It is a quick and easy way to transfer gold bullion to either your own portfolio, or to others.


Does this pay a dividend?
No. Holding a share is the same as holding 0.01 grams of gold.


Why is you per-share price so high. It’s way over spot price.
The spot price is the going rate for a certain amount of gold. Having this gold purified, and minted in to exact weight bullion adds a extra cost.
The share prices reflects the bullion price for minting, storage and other costs.
After the shares are released to market and sold, the price per share is determined by the market itself.

Why do you buy small bars of bullion when there is less overhead with larger bars?
It's true, smaller bullion bars do have a bigger bullion cost than larger weight bars. This is why 5 grams is the smallest that can be withdrawn.  I chose this size because I feel it is the best opportunity for smaller investors to eventually withdraw a bar while keeping bullion costs manageable.
As market demand grows, larger bars will be added to the bullion stock. However I need to keep enough 5 gram bars in stock to fulfill requests to withdraw 500 shares.

Do you sell shares first and then buy bullion?
No.
No shares will never 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 see BTC-GOLD and LTC-GOLD Why are there two?
I manage two separate funds--one priced in Bitcoins and one priced in Litecoins. They both work the same way and each fund has it own stock of bullion and will never intermix.

ANNOUNCE: BTC-GOLD CLOSING

My Goal is to increase strength of Bitcoins and Litecoins, by allowing the free and simple trade between the currency and Physical Gold Bullion without all of the hassle and added expenses of procurement and sale of bullion.
Each share is equal to 0.01 grams of gold bullion.

OVERVIEW:

By investing in BTC-GOLD you are investing into Physical Gold Bullion. Various forms of Gold Bullion will be obtained by the operator (myself) ranging in brand, size, and form, but all gold is guaranteed to be at least .999 pure. The amount of shares in circulation at any time will only reflect the amount of gold I have held physically in grams at any given moment. One share is and will always be equal to 0.01 grams of physical gold bullion.

WITHDRAW OPTION AND SHIPPING:

You may request to have your shares withdrawn as physical gold bullion and shipped to you.
You must issue requests in 500 share (5 gram) increments.  To do this, please send the operator a message and I will give further instruction. I will also require that you pay a 15 share handling fee and the entire shipping expense, which will be calculated upon your request for withdrawal. Payment for shipping will be accepted in additional Shares, Bitcoins, Litecoins, BTC-E Code, and MtGox Code.
You will be responsible for the cost of all shipping features you desire, be it insurance, or the use of another shipping company. (ie UPS or Fedex) After the entire shipping expense has been paid, I will guarantee that all gold bullion withdraws requested will ship out on my end, and I will provide appropriate tracking via the carrier at no additional cost, when available. However,
although rare, the carrier can lose your packages. I am not liable these mistakes, and it is your responsibility and highly recomended to request appropriate insurance if you feel it necessary. It is also your responsibility to check all of your country's laws about bullion importation. I will be shipping from the USA, so please look into local laws, and be prepared to pay
any applicable taxes, customs or fees imposed by your country.

Exit Strategy:

If for any reason I am unable to continue my obligations here, I reserve the right to shut down operation. In that case, the first option available will be to receive your Physical Gold Bullion via the mail. The above shipping terms still apply, but the handling fee will be waived in this case. For those that do not want to receive their Physical Gold Bullion, I will liquidate the remaining bullion and pay out your share value at current Gold spot market value.

Bullion:

Your investment is 100% backed by Gold Bullion. No shares will be issued unless an equal number of grams is held in storage. In theory, your stock value should never be worth less than its weight in gold. Of course, gold has its own price fluctuation up and down, but it is your duty to make your own informed decision as to whether or not this is an investment that suits your needs. I recommend you do some research into gold economics, look at the price trends, and decide for yourself whether Gold Bullion is the best choice for you right now.


Condensed Version


This is a Gold Bullion mutual fund, operated and managed by myself.  Each share being worth 0.01 grams of Gold Bullion. I will buy .999 pure Gold bullion, and will first take pictures to prove the total asset amount, and will then release an equal amount of shares to how many total grams of gold bullion are in the fund. The gold bullion will then be placed in a secure location, and locked away until needed. Another feature that this investment has, is the option to physically withdraw from the Gold Bullion asset. In this case, I will send you your physical gold bullion in the mail, of course I will require that you pay shipping and customs/duties, and there is a small fee, but that is listed in the shipping terms above.
The best part being, since there will never be more or less shares owned and on the market than I currently have in the vault, everyone could withdraw at once if they really wanted, and no one would have to wait, and there would be no "bank run." Although, I will mention, your best deal is to just own the BTC-GOLD shares, and not have them physically shipped. The whole idea of this asset is to give a liquid Gold to currency asset, where you don't have to deal with your own country's taxes (VAT to be specific) and you don't have to deal with the shipping cost.