Many investors are flocking towards Bitcoin, a digital-only currency that has an intentionally limited supply. For many, Bitcoins are slowly replacing gold bullion as a traditional store of value guarding against inflation.
There are other reasons why investors don’t buy gold too, like the cost of storing it and the inability for retail investors buying the metal in small quantities to get decent prices.
One Canadian company is implementing a very 21st-century solution to an asset class many say is stuck in the past.
Goldmoney Inc. (TSX:XAU) is a Canadian startup that offers Canadian investors the ability to not only buy gold via a digital platform, but also the ability to transfer the commodity from user to user via email or text message. It also lets users to redeem their balances onto a prepaid credit card or a bank account in local currency.
It offers users an easy way to own gold with the kind of flexibility most investors who hold the precious metal can only dream of.
The company got a big boost on Wednesday when it announced the Bank of Canada as a partner. Users will be able to purchase gold held in Ottawa’s vaults in as little as $0.35 increments for a fee of just 0.5% of the value of the investment. And the company won’t charge a storage fee for the first 1,000 grams of gold either.
Goldmoney users own the underlying gold, but there’s no indication that they can actually redeem their ownership interest for physical gold. Of course, most users don’t want the hassle of physically holding their investment. That’s a big appeal of the service.
Tech Insider
