January 23, 2022

Five Ways to Buy Gold with Bitcoins


Bitcoin is often referred to as "digital gold", so it makes sense that many of its crypto fans I also like gold in its physical form. Over the past couple of years, several companies have sprung up providing opportunities to buy gold with bitcoin.

Why buy gold at all?Some choose it as a tool for savings, others as a trading asset, and there are those who hedge the risks of high volatility in cryptocurrencies with them, while being outside the fiat monetary system.

A new type of companies trading gold forbitcoins, empowers investors who want to protect their savings from inflation risks. In most of these companies, they will not require documents from you to conclude a deal with you, thus, your hard-earned money will remain out of sight of various supervisory government agencies.

Whatever your goals, the following five companies can help you buy gold with bitcoin.


The San Francisco-based company in thisyear was renamed from DigitalTangible. She has been called a pioneer in the provision of services for trading gold for bitcoins, since she appeared last year, she was the first to launch her platform.

Serica uses colored coins from Counterparty,to issue gold certificates with proof-of-custody of the underlying asset. Physically, gold is in safes in Delaware (USA) and Singapore. Serica does not require any documents issued by government agencies in order to be able to use its services.



Joshua Sigala lost some of his savings when Mt.Gox crashed. After that, he founded Vaultoro, wanting to make a completely transparent exchange for trading gold in exchange for bitcoins.

The founder of the platform shares his own experience:

When I first turned my attention to goldI saw a good opportunity and wanted to buy this asset. It took 4-5 business days to replenish the dollar account on my account as it was an international transfer. I had to pay about $ 30 in commission for it, despite the fact that the transferred amount was $ 2,000. Besides, the “entrance ticket” was rather big ... When I needed to close a position and withdraw cash, I had to go through an equally lengthy and costly process. In the case of Bitcoin, all the same can be done in an hour, while the volume of the transaction is not limited by anyone or anything, and its cost will be approximately 2 cents.

Segal was interviewed by Cointelegraph reporters. Here we will present it in a somewhat abbreviated and adapted form.

CT: Do you think Bitcoin has a chance to become a real competitor to gold as a store of value?

DS:Perhaps one day that Bitcoin finds a fair price. But today, people still find it difficult to understand the real value of bitcoins. I feel that Bitcoin is worth a lot more than it is being given today, but the high volatility means that the market still has no idea what its true value is and is trying to figure it out.

Throughout history, gold has been mostlyused to collateralize currencies. It is inconvenient to use it as an everyday means of mutual settlements, since it is too heavy and difficult to divide. Every day, more and more traders want their bitcoin funds backed by gold. Why is that? Because it is another private asset, the value of which is recognized all over the world, and like Bitcoin, gold is not limited by state borders (a rather controversial statement).

CT: What made you go into this sector and start Vaultoro?

DS:I have been following Bitcoin since the moment it reached parity with the dollar. For me personally, Bitcoin represents a peaceful evolution, a gradual movement out of the crazy global financial turmoil that our world has found itself in at some point. I instantly saw the potential and rushed down the rabbit hole.

Having lost some of their funds in the collapse of mt.Gox, I realized that the real reason is the lack of transparency of the exchange mechanisms and the incompetence of its employees. This inspired me to create the most transparent exchange in the entire industry, an exchange that would show the world how, while maintaining maximum transparency, give users a high level of privacy.

The exchange service uses three typesbitcoin wallets. These include "a hot internet wallet for daily transactions, a warm wallet for audit purposes with slightly more bitcoins than a hot wallet, and finally a multisignature cold wallet that contains the bulk of the user's funds."

Vaultoro safes are located in Switzerland, and twiceaudited by BDO International annually. To purchase gold using this service, no documents are required from government agencies, unless the volume of purchases exceeds $ 5,000 per day. Services are not provided to residents of Iran, Syria or North Korea.


Midas rezerv

Thailand-based Midas Rezerv has releasedown colored coin MRCoin. One such coin is equivalent to a gram of gold bullion stored in one of several vaults located in Dubai, Amsterdam and Hong Kong.

Midas Rezerv's inventory audit results are regularly published on the Bitcoin blockchain.

Midas Rezerv does not function as an exchange, but rather as an MRCoin provider and wallet provider. The company also does not require government documents in order to use its service.



With offices in San Francisco and Shanghai, Bitreserveacts as an intermediary between bitcoin and certain fiat currencies, including the US dollar, yuan, and euro. It provides opportunities for converting them in both directions at the request of the client, so that the latter can use the currency he needs.

The company claims that today in itsthe vaults contain various currencies worth $ 1,664,187. This figure is published through their own systems "Reservechain" and "Reserveledger". At the same time, the site does not provide information about where the company's repositories are physically located.

Bitreserve also claims ownership of some commonly used words, including bitsilver and bitgold.

A phone number is required to open an account, and documents will be required if “certain account limits are exceeded” or if you claim to be a resident of China.



This Canada-based exchange servicebitcoin for gold is apparently unaware that Bitreserve owns the word "bitgold". At the same time, the company provides its clients with a set of unique services.

Among them is the BitGold Mastercard, whichacts as a credit / debit card linked to the client's gold in the company's accounts. The company also owns its own network of BitGold ATMs, which allow customers to instantly purchase gold to their account at a price that differs from the prices on the spot market by no more than 1%.

Gold is stored in Brinks (Toronto), New York, London, Zurich, Hong Kong and Singapore. To use the services of the company, documents are required.


Golden Opportunities

Although this company is not quite suitable for ourThe list of firms that own gold directly, BitShares is still worth mentioning, as it provides services for trading gold futures. The smart futures contracts are called bitGold, just don't tell Bitreserve about it!

And for those interested in owningphysical gold, Amagi Metals has been accepting bitcoins in exchange for gold since 2012. The team of this company is so fanatical about cryptocurrencies that starting in 2016, they will no longer accept payment in fiat for their goods. Veldt Gold also buys and sells precious metals with bitcoin and has never accepted credit card payments as a matter of principle.

In conclusion, we advise you to remember one importantpoint: whenever you trust someone to hold your property (in this case gold), you assume the risks of a third party. This means that if one of the companies decides to escape under cover of the night, then you may never see your property again. This is where a company's reputation in the market and its ability to manage risk comes into play. Don't let third parties be held responsible for property that you cannot afford to lose, and make sure that you are satisfied with the physical delivery of gold, if necessary.


Adapted from: cointelegraph1, cointelegraph2

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