What is a Gold Bailment?

In English law a "bailment" occurs when a person [the bailor] delivers physical property (gold bullion bars) into the possession of another person [the bailee] on condition that the goods (gold bullion bars) are either returned to the bailor at some later agreed date, or disposed of in accordance with the bailor's instructions. The essence of a bailment is that the bailee [a custodian] has physical custody of goods but they remain the outright property of the bailor [you].

 

The bailment is founded on old and well established trade laws.  Ancient courts decided that transferring goods to a custodian did not grant a property right to the custodian, or to its creditors in the event of the custodian's failure.

 


Instead the property remains that of the original owner until it is delivered according to the bailor's [your] instruction. Failing successful onward delivery the property would be returned in full to the bailor [you].


If you've not heard of a bailment it's because they are now uncommon - especially in the investment world.  In law a bailment is restricted to physical goods which can be owned outright through possession.  A bailment cannot apply to entitlements evidenced by stock certificates, trust deeds, unallocated accounts, futures or other bookkeeping entries.  With these the possession of a piece of paper does not grant the basic property right, because the actual value of what is owned is abstracted from the paper itself.

So bailments - and the outright property rights they confer - are not widely applicable to modern securities like stocks, shares and even gold certificates.  Instead modern securities law is based on contracts, trusts, deeds and increasingly complex case law.

All of these constructions are far more complicated than owning some physical material.  Indeed key clauses in contractual and trust agreements are frequently struck out by the courts, which insist on their right to interpret complex documentation and its wider legal meaning.

There is simply not the same potential for future argument with a bailment of physical goods.  It remains the legal property of the bailor [you] and this inalienable property right is soundly established and tested in law.  Over several centuries there is very much less case law on the subject of custody bailments than on the subject of trusts, because there is much, much less to argue about than with a trust or deed.

 

 

The text above was copied from BullionValult.com

 

Gold Bailment at iGolder

You are welcome to bring your gold bars for bailment, and we will issue the equivalent of fine gold in your iGolder account.  For instance, if you bring a 400 oz gold bar having 99.5% purity, then iGolder will add to your account 398 oz of gold.  Bar purity is measured, and only the purity multiplied by the gross bar weight is added to iGolder inventory records.  So your gram of 'fine gold' is guaranteed 100% pure gold held.  Since iGolder only works in milligrams, your account will receive exactly 12,379.183 grams of gold for your gold bailment.

 

There are no fees for gold bailments, unless we suspect the gold bar needs to be verified by a third party for authenticity.  If such the case, we will inform you and you will have to pay the fees associated with verification.  Please bear in mind that a gold redemption has a fee up to 5%.

 

 

Since August 1st, 2013 iGolder is no longer accepting new accounts and balances can only be redeemed. During the past years, we have been recommending Bitcoin more than our own payment system. We believe in physical gold ownership, and developed iGolder as a mechanism for people to acquire physical gold by trading with one another.

Since iGolder has a central point of failure (our server may be raided by thugs wearing some kind of uniform), we feet it is safer for us to cease operations. The iGolder experiment has been personally rewarding as we met many gold enthusiasts and also learned about Bitcoin in the process. For those who have no idea what Bitcoin is, we recommend doing your own research. Bitcoin is far superior to iGolder in every way, both in privacy and security as our server is always vulnerable to confiscation. Bitcoin is a communication protocol with a built-in "escrow service" capable of protecting both the buyer and the seller, rendering our Safetransit completely redundant. To learn more about the Bitcoin protocol and its feature, please watch "http://www.youtube.com/watch?v=mD4L7xDNCmA (Bitcoin 2012 London: Mike Hearn).

For those having gold in their iGolder account, we will ship the physical metal to anyone having more than 1 ounce of gold, assuming the owner is willing to assume the shipping costs. For smaller quantities, we offer to settle in Bitcoin, however we will also settle with any other reasonable payment system. We will give everyone at least two full years (until 2016) to contact us to claim their gold. After that period, any unclaimed gold will go to fund an economic development project in Honduras helping local people to become entrepreneurs.

We sincerely wish you the best in life and hope to keep in contact with you.

Yours in liberty,
The iGolder Team.


Update 2014: Since we announced we no longer accept gold transfers, we have received countless emails asking to keep the free gold charts and the PGP encryption tools. We plan to keep running the domain iGolder.com for both the gold charts and the encryption tools. Better, we are developing state of the art open-source software for a secure decentralized social network with a built-in wallet. We will announce when we have a product ready for use. Stay tuned!