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Buying Gold & Silver with Bitcoin

Bitcoin - Gold vs The Federal Reserve

The United States Federal Reserve's Fiat Currency

Early investors in the Bitcoin (BTC) have made thousands, even millions of dollars.

If you’re not familiar with so-called cryptocurrency, it is essentially electronic money. Think of it as dollars that only exist in cyberspace. It is a purely digital asset designed primarily for transactions – just like money. You can buy stuff with BTC, and you can accept it as payment. But like more traditional currencies, you can also buy and sell it as an investment. It’s no different than buying euros, or yen, or yuan with dollars. If you buy Bitcoin, you are betting it will increase in value relative to other currencies.

    And it has...

Federal Reserve Notes (IE US Fiat Currency) on the other hand are controlled by a select few wealthy elites and are not even accountable to the US government or taxpayer.

Bitcoin Quick Search Table of Contents

How to Purchase Precious Metals with Bitcoin

BITCOIN RESOURCES


Note: If you already have a Bitcoin account and wallet, you can skip down to the section titled “4 Easy Steps to Buy Gold with Bitcoin”. If you don’t own Bitcoin, read this section for links to resources that will get you on your way.

Before you can buy gold or silver with BTC, you’ll need to acquire some of the cryptocurrency. As with most unfamiliar things, the process can seem a bit intimidating, but it really isn’t complex. It’s basically a 2-step process. Bitcoin.org has a Getting Started With Bitcoin page that walks you through the steps.

  • SeT UP A WALLET
  • GET BITCOIN
  • GOLD & SILVER

Set up a wallet – A Bitcoin wallet is pretty much what it sounds like – a place to securely store your cryptocurrency and facilitate transaction. It’s really no different than putting dollars in your billfold. You stick your money inside and keep it there until you need to spend it. Then you pull out your dollars, hand them over to somebody else, and they put them in their wallet. A BTC wallet operates on the same concept, except it all happens via computer. When you set up your wallet, you will get a unique digital address and a security key. Bitcoin.org has a page to help you chose the wallet that’s right for you.

4 Easy Steps to Buy Gold with Bitcoin

Purchasing gold and other precious metals with Bitcoin is even easier than using your bank account. You can very simply convert your BTC into gold and silver in four simple steps. Our precious metals specialists will walk you through the process and answer any questions that may come up.

Silver and Gold representative at SchiffGold

Step 1: Call

First call (888) 465-3160 to talk with one of our knowledgeable specialists, or you can chat discretely and directly at SchiffGold.com.

gold bitcoin invoice SchiffGold

Step 2: Invoice

Once you finalize your order, we will generate an invoice priced in Bitcoin through the payment network BitPay. You will receive the invoice via email.

gold bitcoin coin schiffgold

Step 3: Bitcoin Wallet

With invoice in hand, you can very quickly and simply pay it in Bitcoin using your wallet.

hand truck gold and silver shipping SchiffGold

Step 4: Shipping

After the transaction processes, we will ship the metals directly to you, or you can set up a storage account through us.

Top 5 Advantages to Owning BTC

There are a number of advantages to owning Bitcoin. Most of these revolve around anonymity and security. BTC is built on a decentralized platform known as the blockchain. Because of its nature and its inherent redundancy it is virtually impossible to hack the system or trace transactions, as long as you take steps to protect your personal information. Following are the top five advantages of owning BTC.

1
bitcoin transactions

BITCOIN BENEFIT #1

  1. Global Currency – BTC is a single international currency that you can use around the globe without any conversion.
2
bitcoin digital transaction

BITCOIN BENEFIT #2

  1. Lower Transaction Costs – Bitcoin transactions often incur lower lower fees and could save you money compared with using a credit card or PayPal.
3
gold silver bitcoin taxation IRS

BITCOIN BENEFIT #3

  1. Lower Taxes – Currently, there are no sales taxes levied on the acquisition of Bitcoin. While the IRS does require you to report capital gains on the sale of Bitcoin, you can buy BTC and use it in everyday transactions without incurring tax liability.
4
Bitcoin wallet anonymity

BITCOIN BENEFIT #4

  1. Anonymity – A series of random letters and numbers makes up your wallet address. Unless you choose to reveal it, nobody can connect it to you. This greatly increases privacy. You can transact business discretely using Bitcoin. This limits third party access to your personal financial data and decreases the risk of identity theft.
5
government search and seizure of wealth

BITCOIN BENEFIT #5

  1. No Third-Party Seizure – The Bitcoin system is built on redundancy. Because multiple copies of every transaction exist on the blockchain, nobody can get your bitcoins. There is currently no way for governments to seize or freeze your wealth.

Reasons to Buy Precious Metals with Bitcoin

Bitcoin has significant upside. BTC and precious metals both offer alternatives to government monopolized fiat currency. They play a similar role as free market, sound money. But as with any financial instrument, there are potential pitfalls. Diversifying your cryptocurrency portfolio with precious metals can help mitigate some of the potential downside and put you on in an overall stronger financial position.

1
gold and silver historical value

PRECIOUS METALS BENEFIT #1

  1. Value Historically Consistent – Bitcoin has an amazing track record so far. The blockchain has proven to be a groundbreaking technology, and BTC has tremendous potential for continued growth. But it is still very young. As with any game-changing technology, the landscape is constantly shifting. How Bitcoin will evolve over time remains to be seen. Volatility can be both a blessing and a curse for investors. Gold and silver have a multi-millenia long history as a trusted store of value. People have used precious metals as money, for most of human history. Records of gold transactions exist dating back to 600 BC. The earliest coin minted from precious metals (an alloy of gold and silver) is more than 2,700 years old.

2
stock market bubble

PRECIOUS METALS BENEFIT #2

  1. Stock Market Bubble – Many economists believe a massive stock market correction is overdue and the country will likely to slip back into a recession. Gold and silver historically perform extremely well in tough economic times as people flock to precious metals as a financial safety net.

3
IRS taxes on bitcoin gold silver bullion

PRECIOUS METALS BENEFIT #3

  1. IRS Taxation – While the federal government hasn't found a way to effectively collect taxes on Bitcoin, politicians in D.C. will eventually figure it out. Precious metals dealers are not required to report purchases of gold and silver, and precious metals are one of the last private and discreet financial investment options remaining.

4
american eagle coin physical gold asset heads

PRECIOUS METALS BENEFIT #4

  1. Physical Asset – The online, crowd-sourced nature of Bitcoin has created some instability in the past. Power struggles between key figures in the Bitcoin world have disrupted the market from time to time. While things currently appear stable, there is still potential for problems. Because gold and silver are tangible, physical assets, diversifying your portfolio with precious metals can add an element of proven stability.
5
International Finance Center Portfolio Diversification

PRECIOUS METALS - BENEFIT #5

Portfolio Diversification - The meteoric rise in the price of Bitcoin might tempt you to invest everything you have into the cryptocurrency. But no competent financial adviser or brokerage firm would ever recommend putting all of your wealth into a single investment. You wouldn’t put all of your money into a single stock. You wouldn’t put all of your wealth into a single bond, and you shouldn’t put all of your wealth into a cryptocurrency.

Bitcoin may well continue to increase in value relative to the dollar, but it is still wise to diversify. As with any asset, there are uncertainties in the Bitcoin market, including potential "forks" and the proliferation of new cryptocurrencies competing for market share. Silver and gold bullion are the perfect physical commodities to compliment your Bitcoin portfolio.

Bitcoin & Gold (The Magic 8 Ball Say's)

Like precious metals, Bitcoin has its foes. In some cases they are the same people. Many of the foes are just naysayers who don’t see the investment value in cryptocurrencies or precious metals. But some – generally government agencies and central bankers – want to limit the use of precious metals and Bitcoin because they threaten their power.


IRS

IRS Internal Revenue Service

The IRS wants to crack the anonymity of digital currency in order to collect taxes on transactions.

In November 2016, the IRS filed a petition in the District Court for the Northern District of California asking for authorization to serve a summons to Coinbase in order to gain access to user information.

“The ‘John Doe’ summons relates to the investigation of an ascertainable group or class of persons, that is, United States taxpayers who, at any time during the years ended December 31, 2013, through December 31, 2015, conducted transactions in a convertible virtual currency as defined in IRS Notice 2014-21.”

In December, San Francisco attorney Jeffery Berns filed asked a court to quash a subpoena demanding the release of the information. He says he held Bitcoin at Coinbase but never sold it. A few months later, his firm had to drop the suit when the IRS said it wouldn’t target him, but he vowed to continue the fight. (Fortune: http://fortune.com/2017/03/19/irs-bitcoin-lawsuit/)

“We will, however, continue our efforts to protect the rights of Coinbase customers regarding this patently overbroad summons. Thus, we plan to file a motion to intervene in the enforcement proceeding on behalf of other Coinbase customers who have contacted us and expressed their interest in fighting the summons,” said the firm in a statement.

Department of Justice - DOJ

Seal of the United States Department of Justice DOJ

Government law enforcement agencies want to pierce the veil of Bitcoin anonymity for a different reason – to keep you safe.

Governments around the world have been waging a war on cash in the name of keeping it out of the hands of criminals. While this is superficially plausible, it’s really about control over the financial system.

By controlling access to your own money, banks and governments increase their control over you. They can collect maximum taxes and fees, they can track purchases, and they can even manipulate your spending habits by imposing negative interest rates that effectively charge you for saving.

From WSJ: “Eliminating high-value currency would increase the cost and difficulty of hoarding cash.

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Now we’re beginning to see the same arguments against Bitcoin as we’ve seen against cash. Bloomberg asked the question: Are Bitcoins the Criminal’s Best Friend?

“But when federal law enforcement closed the ‘Silk Road,’ the wildly popular online illegal-drug emporium that used Bitcoin as a medium of exchange, politicians and policy makers took notice. Criminals, it turns out, really like bitcoins, which can be exchanged for nefarious purposes on the ‘Dark Web,’ with complete anonymity and, it seems, impunity.”

Government has already waged a very real war on gold. On April 5, 1933, Franklin D. Roosevelt’s Executive Order 6102 which “[forbade] the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States.” Americans who owned gold were told to deliver their gold to the bank and in exchange receive paper dollars of equivalent value, $20.67 per ounce at the time.

Bitcoin & Precious Metal Warriors

​“There will be alternatives to the dollar, and this might be one of them,” said former U.S. congressman Ron Paul. If people start using bitcoins en masse, “it’ll go down in history as the destroyer of the dollar,” Paul added.

http://money.cnn.com/2013/12/04/technology/bitcoin-libertarian/index.html
Ron Paul Former US House Representative (TX), author and physician
Marc Faber Marc Faber is a Swiss investor, publisher of the Gloom Boom & Doom Report newsletter and is the director of Marc Faber Ltd, which acts as an investment advisor and fund manager

“Dr. Doom” said in an interview on Squakonomics that given the choice between gold and Bitcoin, he would chose gold. But he said he recognizes the value of Bitcoin as an exchange currency.

“I think bitcoins, or something similar, have a lot of merits because in theory, you could purchase a Bitcoin here in Thailand, and then you travel to the US, or to Britain, and with that Bitcoin, you can buy goods. I am not sure in the future whether it will be possible to carry gold from A to B, or even transfer money from A to B. I’m not sure.

But gold and Bitcoin are two very different kinds of currencies, in the sense that gold will always have some value. Bitcoin will have value as long as there are exchanges.”

Jim Rickards, author of “A New Case for Gold,” said Bitcoin is a valid form of money.

“At various times in history, feathers have been money, shells have been money, dollars and euros are money, Bitcoin is money, gold is money, and silver is money. There are many different kinds of money.”

But he still prefers precious metals because they are tangible and not dependent on any network or system.

“Bitcoin is digital. If the power grid goes down, your bitcoins are worthless. I’m not anti-Bitcoin … but physical gold does not have the disabilities of Bitcoin and digital currencies like the [U.S.] dollar.”


Source:
Jim Rickards American lawyer, regular commentator on finance, and a New York Times bestseller
Peter Schiff Chairman of SchiffGold, CEO & Chief Global Strategist of Euro Pacific Capital

“If you thought QE 1,2, and 3 were bad, wait until you get a load of QE 4. We’re going to have to print a lot more money under President Trump than we printed under President Obama. And we’re still heading for a currency crisis. We’re still heading for a sovereign debt crisis. All of the problems that you believed existed and that caused you to buy gold while Obama was president – all of those problems are bigger now that Donald Trump is president … Look, you can hope for the best. Maybe I’m wrong. But you better plan for the worst, and you better buy some gold.”

Physical Gold an Epic Journey

Gandolf Bilbo eagles gold

Physical Gold an Epic Journey

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“At the end of the day, there is no substitute to having something physical in one’s possession.” “With physical gold, there is no 3rd party between yourself and your investment.” “Some say if you don’t hold it, you don’t own it”.

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