Earnings on the gold

Hey

I just want to make sure I have understood this whole thing correctly.

If I buy 1000 $ worth of gold on BitGold and the price of gold goes up 10 % the next week. I would then have 1100 $ on my prepaid Mastercard, right?

Since I will actually own the physical gold, I must be the one taking the losses or making the earnings of a price swing?

It feels like a stupid question, but in the agreement, it says:

"You agree that you will not receive interest or other earnings on the Gold from BitGold."

So, I was a little bit confused by this. Of course, there is no interest, but aren't most people in BitGold to make earnings?

I am sorry if this question has been asked before. If it has, please disregard it and guide me to an answer. I just had to clarify this :)
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Comments

  • GoldmattersGoldmatters Posts: 3,926 Admin
    @Hawkish The prepaid card is separate from what you have in your account. The prepaid card must be loaded with a specific amount before it is used. Once loaded, the amount on your prepaid card will not fluctuate, unless you use it to buy something.

    Goldmoney (formerly known as Bitgold) works best as a savings and payments platform over the long term. Think of it like a savings account you can actually use and spend through the prepaid card.


    You can also have your gold physically redeemed .
  • UvasUvas Posts: 678 Silver ✭✭✭✭
    edited July 2016
    It works like this:

    You buy an amount of gold. The value of that gold goes up or down according to the current price of gold. So the value of your account goes up and down as it follows the price of gold. When you put money onto your prepaid card, you are actually selling some of your gold to get dollars on your card. So your account balance goes down and your card balance goes up. The money on your card is no longer gold so it stays the same amount until you decide to spend it.

    The earnings you make are when the price of gold goes up, your account balance goes up with it. So, BitGold is not paying you anything. They are just storing something for you that happened to go up in value.

    Hope that helps, and welcome :)
  • HawkishHawkish Posts: 2 Tin ✭
    Alright, got it!

    Thank you, guys!
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @Hawkish

    It is the cheapest, safest, easiest, and most useful way to own gold

    Say you buy gold coins at a dealer and take position of your gold. That dealer will up charge the price of the gold to make a profit. Even if the shiping is "free" you are still paying for it somewhere.

    When - not if - you want to sell that gold you need to find a buyer. That buyer needs to make a profit. You won't get anything close to the spot price of gold. Not to mention fear of getting mugged going to or from the gold buyer. Or having someone follow you home in case you have more gold.

    With BitGold (soon to be rebranded Goldmoney Personal) you can safely deposit online from your bank or a credit card. You decide which of seven vaults to deposit into. Goldmoney charges you 1% to deposit and no storage fees.

    To sell, Goldmoney charges 1%. Load a Prepaid card or transfer to your bank. If your bank accepts ACH (as opposed to just wire transfers) there are no additional fees.

    There are additional fees for bank wires and and physical gold delivery. Please review the following:

    http://support.bitgold.com/customer/en/portal/articles/2035827-deposit-fees-processing-times-policies
    http://support.bitgold.com/customer/en/portal/articles/1927344-redemption-fees-processing-times-policies
    http://support.bitgold.com/customer/en/portal/articles/2069452-goldmoney-prepaid-mastercard-limits-fees

    Gold is gold. Only currency changes price in relation to gold. Save in gold spend only as needed.

    If you want to invest, gold and silver miners have a better return + plus higher risk.
  • PinkdogPinkdog Posts: 511 Silver ✭✭✭✭
    @Hawkish

    If you have never invested in gold or have any doubt in your mind, start by buying $10 worth of gold. Watch the price movements and read some articles. When you have a little experience under your belt and your comfort increases, you will be compelled to save more money in gold. By starting off small you can try out all the Goldmoney features such as the Goldmoney Ma steer Card. Gold luck!
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