Sometimes you hear something you wish you’d said yourself. Ross Norman, a gold shop owner in London, came out with one yesterday in a Bloomberg interview. “Bitcoin is a bit of a lobster pot — it’s easy to get in, but hard to get out”. Wow! That’s a perfect description. How many people have funded an online cybercurrency trading account, bought some Bitcoin, sold for a profit, then – like the lobster that walked into the trap – found they had to jump through hoops to get their money back? Or, found that their newfound gains triggered alarm bells upon transfer back into their bank? It’s the sort of hassle and scrutiny that makes tangling with gold prices much more appealing by comparison.
Most people believe their bank has their back in electronic fund transfers, as consumer rights are protected by the Electronic Funds Transfer Act from the Carter era. But banks also have responsibilities to report large fund transfers to the Feds, which in almost all cases means at least amounts over $10,000 and sometimes less than that. So nouveau riche Bitcoin advocates can find themselves under the microscope. Most end up working with their banks to prove they’re not involved in some illicit activity.
Then – increasingly – there’s evidence they’re buying gold and stashing it in safe deposit boxes. Entrepreneurial gold dealers are helping them make sure it’s all legal and – you guessed it – good for the gold trade. You can read all about it in today’s featured article. And look for a piece from this Gold Enthusiast about what this may mean for the future of gold prices and cryptocurrency.