How To Invest in Gold Online AND Earn Interest AND Pay Zero Vault Fees

Originally published at on May 13, 2015.

If you have spent any time at all researching how to invest in Gold online you will probably already know that there are many different options out there. But which one is the best? Well, of course that depends to some extent on what kind of investor you are.

Traditionally there are various different options which suit different types of people. You can order gold coins and take physical delivery of them to your own home, but of course there will be a big difference between buy and sell prices and you will need to pay insurance and keep them securely yourself. There are various online services which allow you to buy and sell gold and store it in the company’s vaults, but that usually means paying vault fees which can add a significant annual cost, on top of paying the ‘spread’ between buy and sell prices. There are also Exchange Traded Funds, or ‘ETFs’ which track the price of Gold; these often have good liquidity and may offer leverage.

But what I would really like to present to you here is a radical new option which I think will come out best for many people.

Bitshares’ BitGOLD: The Best Way to Invest in Gold Online

Bitshares is an alternative digital currency system which is used to create market pegged assets for various major global currencies and commodities. One of these market pegged assets is BitGOLD. This is a digital asset which works a little bit like Bitcoin, secured by a peer-to-peer ledger called a blockchain, but whose value tracks the value of the world’s favourite precious metal.

BitGold is probably the cheapest way to invest in gold online in 2015. You pay a fee per transactions — every time you buy or sell or send some of your balance to another users — of less than a quarter of a United States cent at the time of writing. The market itself is 100% peer-to-peer, meaning there is no minimum spread imposed on you and therefore meaning that there is a possibility of buying and selling very close to, or exactly at, the true price of the commodity.

In addition to the fact that you can invest in gold anonymously with no demat account and minimal fees, you also earn a ‘yield’ on the BitGOLD that you hold in your account. This yield comes from fees paid by traders and other users, and will increase over time up to one year as you hold BitGOLD in your account. Effectively this means that you can earn interest from your investment as well as profiting from any appreciation in the underlying value.

Because Bitshares is a decentralized peer-to-peer technology you also do not have to trust your investment to anybody else to look after. Only you can access your funds using your secret key, and you can store your digital wallet on your home computer to take full control of your investment.

Your investment will also be accessible to you at any time you may want it, and because it is built on a digital currency you can easily send any amount you want to somebody else, or even use it to pay for things when doing your internet shopping!

How It Works

How To Buy Bitshares BitGold

The best way to buy BitGold is directly through the peer-to-peer marketplace within the Bitshares wallet. This market uses BTS, the internal digital currency of Bitshares and equivalent of Bitcoin, to trade against all market pegged assets. Because of this you will need to start off by getting yourself some BTS, which is always available for Bitcoin and through other methods depending on your country of residence.

If you would like to learn more about how BitAssets work please take a look at this article

Then when you are ready to make your online gold investment take a look at our own article about How To Use The Bitshares Decentralized Exchange

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