Currencies backed by gold have been historically stable and not as subject to inflation as currencies that can just be rolled off the printing press at will.

Wayne Skipper on Concentric Sky takes up this point, “GoldMoney has patented a process by which small units of gold and silver can be securely exchanged electronically.

By taking this system into the mobile space, we are able to offer individuals and businesses a chance to make real-time, face-to-face financial transactions in units that have intrinsic value.”
He adds that by using the GoldMoney system there’s a reduction in counter party risk.
In theory, you no longer have to rely on your bank to stay solvent or on your government’s ability to borrow money.

How does GoldMoney work?

GoldMoney holds physical metal in secure vaults located in London and Zurich. All of the metal is audited quarterly by a third party and is insured by Lloyds of London.

Note of caution: verify this before you sign up!

He does concede that there is are risks.

As with anything tradable, market forces come into play. The value of gold goes up and down. Prudent investors stay diverse. However, gold was one of the only assets to actually gain in value during 2008 and it has a 5000 year track record as a tradable commodity.

“We might be years from the point where you buy your coffee with a digital gold based transaction, but current economic indicators are not looking good – and gold’s historic role as a safe haven in troubled times makes it an appealing instrument of trade as well as a sound investment.”

The ability to use GoldMoney as an IRA is equally appealing.

Getting GoldMoney on for the iPhone

He then explains how to get GoldMoney for the iPhone.

1. Open an account and trade with other account holders.

2. Put money in and take it out as you need.

In this respect it’s similar to Paypal.

If you’re an iPhone user, you can check out the app here:

Let me know if you have tried this or had some experiece with digital currencies.

Ivan

Twitter: http://www.twitter.com/ivanwalsh