With the advent of internet technology that has now firmly found a place in nearly every home across the western world, we have seen virtually every major bank providing an on line banking service to their customers in fiat currency.  Naturally this is a great way for the banking business to reduce costs, limit their staff as well as their local branches.  It also reduces the tedious need for vast amounts of paper money which in itself can be an expensive process, from printing to the logistics of storage and distribution, dealing in electronic credit is the way of the future, however educating the public may take some time.

Thanks to this new technology a new breed of bullion service has emerged – electronic bullion and currencies back by gold and/or silver.  It works on the same principle as many online banking services, but backed by precious metal as its foundation, as opposed to paper credit.  These companies actually have bullion that is stored on an allocated, pooled type of account that is divided amongst the account holders on a measure of grams.  This can become an extremely powerful medium where you can pay your bills for every day items by electronic transfer or debit card into a variety of paper currencies, whilst retaining your wealth in a real hard asset that is independent from any fiat currency fluctuations.  There are a variety of electronic currency exchange services that can allow you to wire funds to friends and family abroad as well as purchase good and services in another country with relative ease that is also cost effective.

The Bullion Vault uses the same principle as a trading vehicle that allows you to accumulate gold by trading between gold and paper currencies.

Mr Bernard Von NotHaus from the Liberty Dollar has managed to take this concept and create an actual legal gold and silver backed currency that is 100% backed by precious metal and is being circulated amongst an ever-growing number of retail outlets.

It is important to note that these types of accounts do not pay any interest, for which the answer is quite simple: Fiat currency suffers from a disease called inflation and inflation reduces the purchasing power of your paper money.  However, precious metal has the credibility of not only being a scarce commodity, but has some 5000 years of proven monetary history.  This compares to a mere 50 years of mutation that has resulted in paper (fiat) money (circulated credit notes) which has already successfully managed to lose almost 90% of its purchasing power since its creation (see chart below).  To add insult to injury, paper money (fiat) needs interest to be added just to keep its purchasing power constant, upon which, we are also duly taxed for the privilege!

Electronic gold services are still in their infancy.  As time will surely tell, this type of bullion service can only grow in popularity as they provide a safe, secure, and easy-to-use service that allows you the option to use it just like a regular bank account.
 

chart source:  Grandfather Economic Report




























 

Disclaimer: Listed to the right are just a small sample of the many electronic bullion/currency dealers in the marketplace.
You should perform your own careful research before deciding upon any particular dealer.

"The most cost-effective, safe and simple way of buying, selling, owning, storing and selling gold - from one gram upwards."

(Based in London, UK)

"Crowne Gold clients can instantly buy gold based on market prices, can digitally transfer all or part of their holdings to anyone anywhere in the world via a secure Internet exchange system, take physical delivery, or sell gold at the click of a button."
(Based in USA)

"DebitGold and its sister companies are breaking open the the mass market for electronic gold transactions...."

(Based in USA)

(Based in USA)

"Pecunix is a currency based on gold - not on paper value, not on dollars or yen or lira or pounds, but on pure, solid, real gold."

(Based in Panama)