A direct question to Roy Sebag concerning physical gold redemption

79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
@Roy Sebag

As you know, I am among your greatest supporters. I applaud your vision for BitGold and GoldMoney. I am one of the earliest US adopters. I am also one of this board's leaders and a recent shareholder by way of BTGDF.

However, I am confused by recent events concerning comments made by you and Katie Sokalsky at the Toronto Town Hall (Time = 1:08), comments made by you in rebuttal to Peter Schiff, and comments made during the Stockholm Town Hall.

At issue is the question of redemption of physical gold via Dillion Gage (BitGold 10g Cubes & Coins | Ship 10g BitGold Cubes to your door). During the Toronto Town Hall you and Katie Sokalsky went into great detail how a physical redemption was in fact the sale of gold in the vault and a repurchase of product from Dillon Gage. Then in the rebuttal to Peter Schiff and in the Stockholm Town Hall you appear to reverse this position.

Perhaps there are two questions:

1) does redemption of physical gold involve the sale of gold in the vault?

2) if the answer to the above is yes, is this a taxable sale?

I realize that BitGold does not provide legal advice. But as you are probably aware, this question has raised a lot of debate on this site and all of us are just looking for answers. We would all very much like for you to respond to this issue, here on the BitGold Community site. Your response would do much to end our confusion.

Comments

  • GoldmattersGoldmatters Posts: 3,551 Admin
    @Roy Sebag will definitely address this. It's an important question and you are an important member, I think we will get an answer soon.
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    @79Au197 is highlighting a good questions for American members in BitGold.

    As for all Malaysian members, don't worry as the above does not related what so ever to any Malaysian. Malaysian don't have any issue on taxable sale or gold whether come from the vault or vice versa.

    As long we received our order to our home address, it's consider accomplished.

    If there is any tax issue like silver coin, we will pay on the spot and still UPS will advance the payment and collect from us upon delivering the said order to us.

    So Malaysian, take the above opportunity to keep more gold and silver.B)
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @Roy Sebag thank you so much for responding so rapidly. I realize that you have a very busy schedule.

    You have provided the key piece of information that contradicts my understanding and explains much. I was of the understanding that ONLY 1kg bars were stored in the vaults. With 10g cubes (and 400oz bars) also in the vault, I can readily accept that 10g cubes and 1kg bars would be a transfer - NOT a sale.

    I have just reread the Terms Of Service and the only reference to 10g cubes being used in the vault is an oblique reference to "grams" as shown below.

    "BitGold accounting units of Gold, in accordance with standard bullion-market practice, are expressed in fine Gold content. The fine Gold content of each bar equals its weight multiplied by its purity. The resulting units of Gold applied to your BitGold Account are 100% pure Gold and denominated in kilograms and grams."

    Perhaps the Terms of Service should at some future date be amended to read "denominated in kilogram bars and 10 gram cubes"?

    Once again, thank you for responding so quickly. We all look forward to great things from the BitGold team. B)
  • zulu1520zulu1520 Posts: 294 Bronze ✭✭✭
    Thanks @Roy Sebag BitGold is awesome. The Aurum software is revolutionary.
  • GoldmattersGoldmatters Posts: 3,551 Admin
    @79Au197 awesome. I knew @Roy Sebag would come through. He is very accessible to his customers and shareholders. Much more than many other execs of other public companies.
  • PrairieSailor_2016PrairieSailor_2016 Posts: 83 Copper ✭✭
    Its discourse such as this that creates a great deal of trust in BitGold. Thanks to @79Au197 for asking such an informed question and to @Roy Sebag for the quick and clear response!
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    This also explains why GoldCubes are shipped in untamperable packaging with serial numbers. This provides a mechanism for matching specific GoldCubes with a user in the vault.
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    edited April 2016
    @ArtMatters, @79Au197, @1halfcockedRooster not only the explanation, I am so so happy, excited and proud of having appreciated as recognition by @Roy Sebag a billionaire(soon to come) by mentioning me in his explanation. None in the corporate figures or tycoons I knew openly mentioning me just because they don't know me but I used to give ideas too in some of their wedsite.. Hu...hu.... :)
  • GoldmattersGoldmatters Posts: 3,551 Admin
    @rohanibuang61 @79Au197 @1halfcockedRooster as well he should! We all help Bitgold as much as Bitgold helps us :)
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    Yes @ArtMatters this is recognition where very difficult to come out from the the mouth of the top B)
  • GoldmattersGoldmatters Posts: 3,551 Admin
    @rohanibuang61 those guys really are awesome. So down to earth!
  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    edited April 2016
    Yes @ArtMatters First time in my life seeing a young humble guy go down to the field with 1 dollar salary, energetic but so cool.
    Proverb says "what you give, you'll get back" and this clearly dedicated to the above :)
  • GoldmattersGoldmatters Posts: 3,551 Admin
    edited April 2016
    @rohanibuang61 They understand the value created by long term investment so they don't care so much about a large salary upfront. This is very wise :)
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
  • GGslv58GGslv58 Posts: 8 Tin ✭
    Ok WHY are the shipping Costs So HIGH for 1 gram cube to Australia Shipping* $293.99 AUD makes no sense
    especially as Brinks operate in Australia $29.39 , $50 but NOT $293.99
    please fix this as it looks highly suspect
  • ThejayThejay Posts: 3 Tin ✭
    Yes ... this is a must to correct...
    this needs to be looked into.. as a new customer access to the physical gold is the only reason I joined...
    this would ensure a strong customer base to follow after me in time to come also...
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