Aurum - who buys and sells?

79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
edited February 2016 in About Goldmoney Products
Something that has been bouncing around in my head for a while. Who buys our gold? Who sells us there gold?


Since all BitGold users see the same BBO average, who establishes the Best Bids and Best Offers?

Since all of the gold is 100% allocated and segregated in the vaults, where does the deposited gold come from? Where does the gold redeemed for fiat go?

Who buys our gold? Who sells us there gold?

Best Answers


  • rohanibuang61rohanibuang61 Posts: 2,379 Gold ✭✭✭✭✭
    Dear @79Au197 I think BitGold is the Buyer and BitGold is the seller. BitGold guarantee our Gold and BitGold guarantee the pricing as per the support/1871471 quotes -

    "Every gold transaction in your BitGold account is executed at the BBO plus an additional one percent (1%) fee. BitGold provides a price guarantee for any transactions executed from Sunday from 6:30 PM EST to Friday at 5:00 PM EST. This price guarantee maintains that the fee added to the BBO will be one percent (1%) or less. Given that gold trades on a 24/5 schedule, BitGold can only provide a price guarantee during those days. For transactions occurring from Friday at 5:01 PM EST to Sunday at 6:29 PM, the Aurum prices will reflect the internal liquidity provided by the BitGold market making operations".

    The other thing we receive gold with BitGold cubes, a trademark of BitGold assets transacting as Gold's Buyer and Seller.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭

    I read that prior to posting. I do not interpret that to indicate that BitGold is the buyer or seller, or at least that BitGold is not establishing the Best Bid or Best Offer.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭

    Yes an excellent visual
  • GoldIsCurrencyGoldIsCurrency Posts: 1,818 Gold ✭✭✭✭✭
    @79Au197 The platform works on a closed loop ledger. Somewhere along the line I read which producers were supplying the gold but for the life of me I can't remember. I thought I saw it on BitGold's twitter account in tweets & replies when someone asked the question. Also when bitgold users sell gold it could also be presumably matched up to other bitgold users that at the same time are buying gold, vice versa.
  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭

    Buy / sell between BitGold accounts should be then based exclusively on the posted BBO Average then not the Best Bid / Best Offer spread. I do not know if this is the case. @Melanie ?
  • MelanieMelanie Posts: 1,045 Gold ✭✭✭✭✭
    "Instead of quoting the Bid or Ask price we display the Average BBO (Best Bid or Offer). This is not the price you will purchase or sell gold at, instead it is the equilibrium price of gold at that moment."

    Click here for a quick explanation!
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