I perfectly understand the arguments.

The only issue is to guarantee that bitgold units are really backed, and that is a line of business.

Example: people wanting to get bitgold would use a goldmoney account transfer to the issuer goldmoney account and that would create a bitgold. A bitgold owner would at any time be able to exchange bitgold for gold (in a goldmoney account) although that is not the point. The point is that bitgolds could now easily transferable or spent. 

In the end the bitcoin exchanges would be able to trade gold and yes, there would be arbitrage that would attract professional market makers.

But the point is the usability of a gold certificate. I am just not sure that the issuer is able to replicate bitcoin concepts for issuing bitgolds.

In fact issuing could be descentralized.

The entity managing it just certifies that the owner of gold made a deposit of X ounces of gold in a gold physical account receiving X bitgolds that he will be able to use.

At any time, a bitgold owner is able to redeem the bitgold for physical  through a gold account (kitco or goldmoney), but this is not the point.

BTC technology would allow a flow of bitgolds (and in fact not centralized gold Exchanges) the same way as bitcoins.


In a more general sense Bitcoin concept probably has many more aplications. 

Think you are right about the Bitcoin strong side.

The thing is that gold has demand and there are alreay many ways of opening gold physical accounts, but the problem is at transaction level.

Not easy to spend or transfer gold accoount units, so there is a limited circulation. And that is a strong pont in Bitcoin technology.

With so much physicall gold already present and used internationally and locally, but more as storing value, the potential of providing a much more easy way to transfer it instantly could be a game changer.

Yes,there is the issuer thing, and the issuer would have probably to provide a real time auditing process, maybe using third party services as goldmoney.com,.

The thing here is that there is probably a business to be explored for more hard currency types.

Bitcoin technology where 1 Bitgold would be backed by 0.1 ouce of gold.

The issuers would sell new Bitgolds backed by a pool account of gold (using a Kitco or Goldmoney account).