Many Bitcoiners decide to dip their toes into less volatile assets such as precious metals like gold and silver.
More and more bullion companies offer the ability to buy gold with bitcoin with close to no fees, or even discounts.
Exchanging Bitcoin for gold and silver is simple. Let’s look at some options.
Headquarters: New York City, NY, USA
Shipping: International (most countries)
GoldSilver is a company founded by Mike Maloney, a well-known precious metal advisor and a best-selling author. It offers precious metal bars, coins and jewelry and ships them directly to the investors all around the world. This company offers purchases via Bitcoin besides other forms of payment. While Bitcoin is set as the main form of cryptocurrency payments, altcoins can automatically be swapped for Bitcoin via ShapeShift or Changelly service providers. However, these payment processors typically have a higher swap fee than the traditional exchanges.
Goldsilver offers many time-limited deals on specific items as well as a price match guarantee in order to ensure the best possible pricing in the highly competitive market of precious metal bullion selling/buying.
GoldSilver currently accepts Bitcoin transactions of up to $1,000,000 per order online, while larger orders will have to be done by contacting their team directly. The company also offers highly secure allocated and segregated bullion storage, which is fully insured and independently audited.
Bitpanda Metals is a digital asset exchange based in Europe.
On their platform you can buy gold, silver, palladium & platinum in digitized form. The metals you buy are physically backed & stored in a facility in Switzerland.
Bitpanda charges 0% insurance and storage premium for the first 20 grams of gold, palladium, platinum and first 200 grams of silver.
Headquarters: Eagle, Idaho
Shipping: International (most countries)
Money Metals accepts Bitcoin payments and other cryptocurrencies.
Pricing of shipments revolves around the following criteria:
Headquarters: London, England / Berlin, Germany
Vaultoro is a gold bullion dealer founded by Joshua and Philip Scigala. It claims to be the first Bitcoin trading platform to trade between crypto and physiocal gold. The company wants to create a bridge between cryptocurrencies and other asset classes. They are currently offering only Gold, but are planning on becoming the “largest asset-based proven reserve in the world.” Vaultoro also offers direct trading between members, which enables desired price listings and trading without any brokerage fees.
The company offers, besides shipping, a professional vault operated by Brink’s service provider located in Zurich. The gold holdings are externally audited and are 100% insured. The vault storage records are kept by using Vaultoro’s Glass Books Protocol. Investors that hold their gold in Vaultoro vault will get a statement each month for tax and record keeping purposes.
Vaultoro supports Bitcoin payments both ways (buy and sell).
Headquarters: Toronto, Canada
Shipping: International (most of the world countries)
GoldMoney is a company founded by Roy Sebag, James Turk and Joshua Dale Crumb in 2001. The company started offering Bitcoin as a payment option as early as October 2010, but the first Bitcoin trade occurred in July 2011. GoldMoney currently offers gold, silver, platinum and palladium bullions. As one of the older and more-established precious metal dealers, GoldMoney might be a good option for the investors that have a difficulty trusting young companies with their funds.
GoldMoney offers a buy/sell fee of 0.5% and a storage fee of 0.12%-0.18%. The precious metals are stored in fully insured vaults that are located in Canada, Hong Kong, Singapore, Switzerland, the UK, and the USA. The vaults are operated by well-known private vault operators such as Loomis International, Brink’s, G4S, Malca-Amit and Rhenus Logistics. The metals are undergoing quality tests such as Ultrasonic Gold Bar Testing and KPMG audits. GoldMoney also issues SAS 70 Type II reports annually to its users.
For those that want their precious metals shipped to them, GoldMoney offers that feature. The company offers precious metal shipping via SchiffGold.
The company currently accepts Bitcoin and Ether.
Headquarters: originally Lancaster, PA, USA; moved to Dallas, TX, USA as of 2014
Shipping: USA excluding Hawaii and Alaska
JM Bullion is a precious metal dealer company founded by Michael Wittmeyer and Jonathan Wanchalk in 2011. The company buys and sells gold, silver, platinum, copper and palladium bullion. This is the right company for anyone that collects coins, as JM Bullion offers free shipping on any order above $99, while the orders smaller than $99 pay a shipping fee of $3.99. They have a wide variety of coins, but also offer gold bars, rounds, statues, bullets and other accessories.
JM Bullion only ships to the USA addresses. This includes P.O boxes and APO addresses. However, as they use USPS as their shipping carrier, they do not ship to Hawaii and Alaska.
JM Bullion uses BitPay as its cryptocurrency payment processor. The company has a minimum order value of $100 and a maximum order value of $250,000 for orders paid with cryptocurrencies.
Headquarters: originally Edmond, OK, USA; moved to Oklahoma City, OK, USA in 2010
Shipping: USA, Australia, Austria, Belgium, Canada, Cayman Islands, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Macau, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, United Arab Emirates and the United Kingdom.
APMEX is a company founded by Scott Thomas in 1999 that started out as a physical precious metal bullion dealer. The company shortened its name to APMEX and later launched its website in 2004. The company sells gold, silver, platinum and palladium bullion. They also buy precious metals from their customers. The company ships internationally, but does not cover the whole world.
The company currently allows Bitcoin and Bitcoin cash as forms of payment with cryptocurrency. Their cryptocurrency payment processor is BitPay. APMEX supports cryptocurrency payment of up to $250,000. Cryptocurrency payments qualify for a 3.0% cash discount.
As time passes, more and more companies are willing to accept Bitcoin and other cryptocurrencies after seeing its impact on the world. Cryptocurrency investors can now diversify their portfolios and reduce the volatility of their overall holdings by investing in precious metals. All of the dealers reviewed are extremely transparent and safe so the choice will come down to one’s needs and preferences.
If you want physical gold, Suisse Gold accepts bitcoin payments and delivers physical bullion.
Vaultoro, the exchange mentioned above, is based in Switzerland.
SilverGoldBull sells physical bullion in the UK and accepts Bitcoin payments. Bitcoin payments receive a 4% discount.
Using a virtual gold exchange like Vaultoro seems to be the best way to buy gold with bitcoin in India.
We do not see any options to order physical gold online in India using Bitcoin as payment.