odolvlobo (OP)
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August 05, 2012, 03:49:11 AM |
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I am considering creating a gold fund whose value is the value of the gold that it holds. This is not the same as the fund started by Btc4Domains. In that fund, the gold is just the collateral for the fund. This fund would be similar to the GLD and PHYS funds, traded on the NYSE. Here are some details. I appreciate comments and questions. - The purpose of the fund is to provide a way in invest in gold though bitcoin without the inconvenience of holding physical gold bullion.
- With the exception of cash held to pay expenses and facilitate operations, the fund will invest exclusively in physical gold bullion. The gold will be unencumbered, fully allocated, and will never be borrowed, lent, or used as collateral. It will be stored in a vault at Wells Fargo and will be audited periodically.
- The fund intends to maintain a nominal share value of 1/100th of a troy oz. of gold, though shares can trade at a premium or a discount to that value. At current prices and exchange rates, a share would have a value of approximately 1.5BTC or $16.
- Shares in the fund will be priced in BTC and traded on GLBSE.
- The fund does not intend to pay dividends or cash distributions.
- In addition to trading on GLBSE, the fund will also provide a way for shareholders to redeem shares for physical gold (with some restrictions).
- The size of the initial offering will vary depending on interest, but my goal is an initial offering of 1000 shares, or 10 troy oz. of gold.
What do you think? Anyone interested? |
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Tim Johnson
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August 05, 2012, 05:42:55 AM |
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The US dollar is 20 years overdue for collapse. Gold will be up for confiscation one of these days.
Keep the authorities from knowing you are storing gold and I might invest. A Wells Fargo vault is not going to make me confident my Gold will always be available. I rather you keep it in your closet.
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puffn
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August 05, 2012, 06:04:24 AM |
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The US dollar is 20 years overdue for collapse.
lolwut? Monetary policy and stimulus are obviously not your thing. If you ever want to make a long term bet on the dollar hyperinflating, send me a message. |
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Tim Johnson
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August 05, 2012, 06:24:00 AM |
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The US dollar is 20 years overdue for collapse.
lolwut? Monetary policy and stimulus are obviously not your thing. If you ever want to make a long term bet on the dollar hyperinflating, send me a message. The average life expectancy of a fiat currency is 27 years out of hundreds of currencies. The US Dollar left the Gold standard 47 or so years ago. I'm already betting on it by longing Bitcoins which are worth more than contract paper between you and me. |
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odolvlobo (OP)
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August 05, 2012, 09:00:23 PM |
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This fund is not just for people that believe the economy is going to collapse. This is an opportunity to buy (well, control) convenient amounts of gold, and also to take advantage of the liquidity of a fund over the lack of liquidity of physical gold.
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byronbb
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HODL OR DIE
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August 10, 2012, 05:42:18 AM |
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I was thinking of this today, but then I asked myself, "How do I profit by offering a GLBSE contract that mirrors the gold price?".
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odolvlobo (OP)
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August 10, 2012, 05:54:55 AM |
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I was thinking of this today, but then I asked myself, "How do I profit by offering a GLBSE contract that mirrors the gold price?".
I am considering creating and managing the fund for 4 reasons: - I own physical gold and I would like to improve its liquidity
- hedge my bitcoin risk
- 3% management fee
- fun
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RandomQ
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August 10, 2012, 08:29:10 AM |
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The US dollar is 20 years overdue for collapse. Gold will be up for confiscation one of these days.
Keep the authorities from knowing you are storing gold and I might invest. A Wells Fargo vault is not going to make me confident my Gold will always be available. I rather you keep it in your closet.
+1 I agree with this statement 100% I would love to see a Gold added to the exchange!
Also I'll be first to ask do you plan on getting verification? |
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odolvlobo (OP)
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August 11, 2012, 06:10:17 AM |
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The US dollar is 20 years overdue for collapse. Gold will be up for confiscation one of these days.
Keep the authorities from knowing you are storing gold and I might invest. A Wells Fargo vault is not going to make me confident my Gold will always be available. I rather you keep it in your closet.
I think the risk of loss due to government confiscation is much less than the risk of storing many $1000's of gold in my closet. I would love to see a Gold added to the exchange!
Also I'll be first to ask do you plan on getting verification?
Yes. Though I value my anonymity highly, it would not be possible to do this legitimately while remaining anonymous. BTW, that would be a good reason for not storing the gold in my closet. So, to any would-be burglars -- I have no gold at home. |
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Otoh
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August 11, 2012, 06:30:51 PM |
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Between 2007 & 2011 I used www.bullionvault.com & found them to be excellent in every respect, I believe in Bitcoin but to put two random extra parties between me & the physical PM (yourself & GLBSE) doesn't make much sense, on BV there is instant liquidity for physical gold & much more trust, but I wish you well, for a few grams or ounces of physical I'd advise anyone to just look after that themselves or for kilos then go the BV route. |
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odolvlobo (OP)
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August 11, 2012, 09:02:14 PM |
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There are many ways to invest in gold with dollars -- GLD is the easiest. However, this fund would be allow people to invest their BTC in gold without having to convert to dollars. |
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BoardGameCoin
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August 11, 2012, 09:44:58 PM |
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Two words: physical delivery
The only way to buy gold.
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I'm selling great Minion Games like The Manhattan Project, Kingdom of Solomon and Venture Forth at 4% off retail starting June 2012. PM me or go to my thread in the Marketplace if you're interested. For Settlers/Dominion/Carcassone etc., I do email gift cards on Amazon for a 5% fee. PM if you're interested. |
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Otoh
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August 11, 2012, 11:42:27 PM |
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There are many ways to invest in gold with dollars -- GLD is the easiest. However, this fund would be allow people to invest their BTC in gold without having to convert to dollars. it costs far less than your proposed 3% management fee to covert BTC to $ & vv so I fail to see how your scheme adds anything but additional 3rd parties risk, sry - though I still wish it well & if one day it built to the lvl of trust, openness & professionalism of BV then that would be great re BGC comment - holding physical personally for PM atm, that's the way I went for the half of my holdings that I didn't convert to BTC |
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