GoldMoney was acquired by a mysterious Israeli Jew. GoldMoney customers should close their accounts
Background: GoldMoney was the longest running gold account firm, holding about $1.2 billion in gold & silver for customers, in private vaults around the world. GoldMoney was run by James Turk, who is an old guy that is well known, well respected in the gold industry. In the past, GoldMoney had been endorsed by Peter Schiff, Mike Maloney, Eric Sprott, Doug Casey, and many other well-known goldbugs. It was probably the safest of all gold account firms.
A few months ago some unknown 30 yr old Jewish kid from Israel – Roy Sebag (BitGold) – paid $42 million for GoldMoney. There is very little known about Roy Sebag. He worked at some no-name firms I’ve never heard of, and it doesn’t even look like he went to college. This Israeli Jewish kid came out of nowhere, and just bought one of the largest gold account firms in the world. Where did he come from? Where did he get this money? Is he an Israeli citizen, now living in Canada?
Is this mysterious Israeli Jew (Roy Sebag) going to pull off a huge heist, like Bernie Madoff or Mark Karpeles (Mt Gox, Bitcoin)? Pay $42 million, to steal $1.2 billion in gold & silver? I don’t know. But I consider the GoldMoney / BitGold situation to be way too risky now. If you have a GoldMoney account, I suggest that you close it out, and get your metal or money while you still can.
I should also mention that it was recently announced that the merged BitGold-GoldMoney entity will use the GoldMoney name. Thus, some existing GoldMoney customers might not even notice the change in management. And some new GoldMoney customers might think this is the GoldMoney company of the past.
People might surf the internet, and find old references saying..
– Peter Schiff recommends GoldMoney on page 228 of his bestselling book “CrashProof”
– Michael Maloney recommends GoldMoney on page 192 of “Guide to Investing in Gold and Silver”
– Doug Casey said “I do recommend GoldMoney.com”
And people might not realize that those are OLD quotes (pre-2015), refering to the OLD GoldMoney company. And people might go to GoldMoney.com, sign up, send in their money/metal, not realizing the complete company reorganization in 2015.
(Note: It appears that Eric Sprott still has an equity stake in the new BitGold-GoldMoney entity, but maybe he’ll quietly exit that investment in the future).
In any case, I see this as a high risk situation, with many red flags. I recommend that GoldMoney customers close out their accounts, and get their money/metal while they still can.