How to Buy Gold with BTC

Bitcoin has been called digital gold by many economists and investors, but what if you want to turn some of your digital gold into real gold? If you want to diversify your Bitcoin holdings, there are several ways you can buy gold with your Bitcoin without first changing it to a FIAT currency and paying the fees associated.

Why Buy Gold?

  1. To diversify out of crypto, but without incurring a possible taxable event (based on your location.)
  2. To balance your portfolio in preparation for inflation, deflation or any instability in the global economy and markets (and yes, it does seem crypto is connected to financial markets.)
  3. As a way to secure some of your savings outside of bitcoin wallets or banks and in storage vaults all across the world (many vendors have vaults in Switzerland, NZ, Singapore, Canada, the US and more locations.)
  4. It’s a way to cash out and secure crypto gains that you can then convert into FIAT as you need. For example, if you live in a jurisdiction where crypto gains are taxed like income, it makes sense to pay yourself out annually rather than in one go.
  5. Gold, unlike bitcoin, has a real-world use and demand is increasing; it’s used in dentistry, electronic production, jewellery and the aerospace industry.

Binance accepted payment

1.Buy Gold Using a Bitcoin Credit Card

Since Bitcoin’s popularity exploded in 2016, several companies have been trying to make Bitcoin more accessible as a payment method/currency. Many of these companies have found ways to connect a traditional debit card to Bitcoin. Companies like Uphold, BitPay, Binance and Crypto.com allow those with Bitcoin in their wallets to spend it using a traditional credit card. The upside is you can buy gold from any vendor, even those that don’t accept crypto. The downside is credit cards have fees, and if you have Bitcoin outside these wallets, then there’s also going to be a fee to transfer your Bitcoin to these wallets.

However, most of the top Gold vendors take crypto payments, so I’d only recommend this avenue if you find a significantly cheaper vendor, you want to buy from the Royal Mint or US Mint, or you’d like to buy gold from a pawn shop.

 

2. Buy Physical Gold/Silver Delivered to You.

Many gold and silver vendors that will sell you gold or silver bars directly using Bitcoin will not store the gold for you. They physically deliver the gold to your residence so you can store the gold yourself. There are many vendors (MoneyMetals, Apmex, silvergoldbull and more). We’ve chosen those with the lowest prices on their site. Bear in mind that gold prices constantly change, so these are only an indication of price.

Bitgild – This is a Dutch gold vendor, they send gold to your residence seven days after buying, and shipping is insured. Shipping is known to take some time though. They accept Bitcoin with BTCPay, so the amount of Bitcoin charged is very fair. Their minimum order is €160, and you sell your gold back to them for crypto at any time. Their prices are below:

1G- €58 / $68
5G- €261 / $308
10G- €512 / $605
1oz- €1,574 / $1862

Bullion Exchanges – This is a New York-based gold broker they have no minimum order for crypto payments and accept Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE) and 4 USD-pegged stable coins (GUSD, USDC, PAX, and BUSD).

1G- €58 / $68
5G- €274 / $322
10G- €545 / $645
1oz- €1,584 / $1882

3. Buy Physical Gold/Silver Stored in a Vault or Delivered.

Many gold vendors will sell you ownership of gold without ever transferring possession of set gold to you. The upside is the gold stays in a secure vault (think Fort Knox), and if you need to sell it again, the vendor only needs to change the ownership papers.

GoldSilver.com – Offers delivery or storage or delivery of gold bars starting from 1/100th of an oz. They offer a 3% discount for paying with Bitcoin and use BitPay as the payment method, which costs $4 for Bitcoin and is free for Bitcoin Cash. Their prices are below:

1G- €55 / $66.5
5G- €240 / $284
10G- €480 / $569
1oz- €1592 / $1,885

Vaultoro – Is a Swiss-based gold vault solution. The idea is you can buy gold through them (they let crypto and gold owners market make and take 0.05% fee for their trouble), and they store it in their vaults in Switzerland. The gold is legally yours, and you can have it sent to you at any time (although they advise against it.) You can sell your gold back to the market easily too. They charge 0.04% for storing gold and 0.1% for silver. Their prices are below:

1G- €50 / $59.5
5G- €240 / $284
10G- €480 / $569
1oz- €1417 / $1,675

SuisseGold.eu – Is a Swiss-based vendor of gold, silver, platinum, palladium and rhodium. They both store your precious metals or send them to you. They charge for gold/platinum/palladium: 0.5% (0.042% Per Month) of the total market value in storage with a minimum cost of €25 a month. You make a transfer to their Bitcoin wallet to purchase gold using Bitcoin. Their prices are below:

1G- €64 / $76
5G- €320 / $379
10G- €534 / $631
1oz- €1573 / $1,858

BullionStar – offers very competitive rates, especially for smaller amounts of gold. They’re Singapore based, which means you can secure gold outside of the US/EU. They have vaults in Singapore and even New Zealand. BullionStar accepts Bitcoin, Bitcoin Cash, Litecoin, Dogecoin and Ethereum. They do want users to settle quickly, so it pays to use crypto with lower transaction fees. Their prices are below:

1G- €51 / $76
5G- €275 / $325
10G- €534 / $631
1oz- €1620 / $1,915

4. Sell your Gold for Bitcoin

Many of the above vendors will also repurchase gold from you directly and pay it back in crypto. The vendors that hold your gold in vaults make it easier to sell as you don’t need to deliver the gold for sale to proceed physically. In this case, all that happens is the ownership documents change from your name to the new buyer so that settlement can happen much faster.

Author – Alex Beck is the founder of Clarafinds.com, a fintech comparison site to help people find and compare the best new finance products.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top