Bitgold — boom or bust?

LessThunk: Bitgold’s share price had a hell of a ride sofar.

We first mentioned it here on LessThunk.com in an interview with Nolan Watson, the CEO of Sandstorm Gold.

Eric Sprott, another famous mining investor, who has a stake in goldmoney and Bitgold, talks (kingworldnews interview) very positively about it and sees a ton of potential.

Dominic Frisby, who does not like Eric Sprott too much, as Sprott despite being a silver perma-bull sold some silver and put the money into mining shares, thinks Bitgold is in big bubble territory and one should stay away from buying the stock.


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Goldmoney,was bought by bitgold for nearly 52M CAD, with 135,000 users and 1.5Bn CA in assets.

At the moment, one gets the special discount of free gold storage. Hope they add silver soon.

It is probably too early to judge how this venture will go:


  • Very well polished, friction less site, combined with good marketing
  • Great backers to the site (Turk, Sprott, etc)
  • Timing might be right (too much debit in the system, currency wars going on, etc.)
  • They offer credit and debit cards, if you want an easy way to spend your gold savings
  • Probably aimed at the smaller, mainstream audience that needs to save to survive whatever is coming our way (read billions in the world)


  • Peter Schiff thinks the barriers to entry are low, this is highly overvalued. He offered it first, but not with the same level of marketing and ease of use.
  • Can one really run convert BTC fans into gold bugs?
  • Can one get the message out to the 3rd world?


Only spend money, buying the stock, you can afford to lose. For consumer usage, I think it is a great site.

Categorised as: banking | BTC | precious metals

Posted by: Kramer

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