What is Rebate Gold?
Rebate Gold, or RGOLD as it appears in your Voucher-Safe wallet, is a gold-backed voucher currency used for rebates. The gold is stored securely in an allocated account at a bonded storage facility.
These rebate vouchers are denominated in grams of gold (asset name RGOLD, for 'rebate gold'), and represent metal held on behalf of the user. While these vouchers are not national currency or money of general circulation, you will be able to hold them in a real wallet. To receive your rebate voucher, you will need to download a wallet client, create a wallet, and then tell us your wallet ID during the process of your purchase. (You can also register your wallet ID separately afterwards.) Once we have cleared your payment and you have provided your wallet ID, we will issue the rebate voucher to your wallet, and you will then have 7 days to pick it up. (We will send you an alert email when your rebate voucher has been issued.)
You can redeem your rebate voucher from us at any time, just as you can with any ordinary mail-in rebate from a store. We do not charge a fee for redeeming RGOLD, unless you attempt to redeem more of it than you were originally awarded on purchases, in which case there is a 10% fee for processing assessed on the overage. You may also hold onto it as long as you like, or even spend it to another wallet ID. Encouraging your friends to create wallets and sending them each some actual value in the form of RGOLD is a great way to spread the word!
One caveat: there is a 0.5% (half a percent) annual fee charged for holding RGOLD. (Basically, the fee charged by the bonded gold storage facility, passed on to Alliance customers.) This fee is automatically assessed based on the age of your voucher, on a per diem basis. Thus after you've held an RGOLD voucher for a full year, you'll find its value has shrunk by half a percentage point. There is no need to pay the storage fee directly. This illustrates a nice feature of voucher asset types: if the asset charges a fee, or pays interest or dividends, this is calculated automatically into the current NAV (net asset value) of every voucher, which is the value displayed in clients and recognized at the Voucher Publisher. (Unfortunately, RGOLD does not accrue any interest.)
Redemption Options for RGOLD
Using the 'Redeem' link in the RGOLD menu on our website, you can create a redemption order and spend us any or all of your RGOLD rebate vouchers for redemption at any time. We will send you your choice of:
- Check or money order in US funds, payable to whomever you please, for face value at RGOLD spot, mailed to the address you specify. Note individual money orders have a maximum amount of $1000 each.
- If you have a USA bank account, we can send you a p2p Transfer using ACH, via your phone number or email address. Our bank will notify you and give you the opportunity to register your bank account coordinates with them to claim your payment. You only need to register with the system the first time, and this mechanism prevents you from needing to disclose your bank account information to us directly. This option is free of charge, and the maximum amount per transaction is $1500.
- Bitcoin, less exchange fees, to the Bitcoin address you specify.
- Silent Bitcoin (SBC), less exchange fees, to the same wallet where you held your RGOLD.
- Litecoin, less exchange fees, to the Litecoin address you specify.
- Silent Litecoin (SLC), less exchange fees to your the same wallet where you held your RGOLD.
- One (1) ounce troy gold coins or rounds for each 31.1035 GAU of your voucher value, less shipping and insurance charges. (Note that this option is by voucher weight not price, and that you can only redeem whole ounces and not fractions.)
- If you have a US dollar bank account outside the USA, we can send you an international wire transfer via SWIFT. A $50 fee and $1000 minimum amount applies to this option.
Redeeming RGOLD in physical form or in check or money order form requires significant human processing, so please allow time for us to do the work involved. We expect to have all payments mailed and all shipments shipped within three to four weeks of your redemption order. Electronic payments (ACH, wires, Bitcoin etc.) can be expected to go out within a week.
Note on RGOLD:GAU Pricing
The pricing for a gram (1 GAU) of RGOLD is rather arbitrarily fixed at 25% over the current global spot price of gold. Since this price is used both for purchases and redemptions, it doesn't actually represent a markup as such. (This implies that the RGOLD Issuer actually buys or sells 25% more gold for the reserves, versus the weight in grams of vouchers issued.)
So why do it? Simply to illustrate what we feel is a very important point: gold which circulates as private digital money is logically worth significantly more than gold which is not backing digital money. Also, to suggest that voucher Issuers can (and probably should) price their digital metal currencies independent of the corrupt "paper" markets such as the Comex, where the ratio of cash-settled to gold-settled contracts has been as high as 252:1.
Consequently, on the wallet client's Show Prices screen, you will see a gram of spot gold quoted as 0.8 RGOLD:GAU (the reciprocal of 1.25). This higher value is used automatically whenever you spend an RGOLD voucher (including of course for redemptions).