NIA announced GoldMoney (TSX: XAU) a few days ago at $2.98 per share as its #1 way to capitalize on rising gold and bitcoin prices in 2017. XAU is NIA’s #2 overall favorite stock suggestion for 2017 after only Western Potash (TSX: WPX). Yesterday, XAU soared $0.31 or 10.44% to $3.28 per share!
XAU is a rapidly growing high-tech gold play that operates the world’s largest 100%-reserved gold-based savings and payments network. It has 1.35 million account holders with $1.28 billion in customer gold assets!
XAU offers the #1 best way for individuals and businesses from all over the world to own gold. Although the Gold ETF (GLD) is very liquid, it charges a 0.5% annual fee plus an average 0.4% premium to spot. GLD is a way of owning paper gold that generally offers NO ownership of the underlying metal. GLD offers no physical gold redemption capabilities and there is no way to transfer or spend your GLD shares.
GoldMoney provides the only safe way to digitally purchase, store, save, and spend gold. When an individual or business buys gold through GoldMoney, you own fully allocated gold with full property rights under bailment law. GoldMoney charges a very low fee of 0.5% the spot price of gold with no storage fees and you can buy any amount of gold as small as 0.001 grams.
GoldMoney allows you to protect your savings from inflation by owning gold instead of fiat currency, but you can spend your gold just like any fiat or digital currency using your GoldMoney debit card. You can also send any dollar amount of gold to anybody online as digital payment just like with Bitcoin. GoldMoney even allows you to request fast physical delivery of gold in any amount (including 10 gram GoldCubes) at any time. It is fast and easy to open a GoldMoney account using a credit/debit card, bitcoin, or wire transfer.
XAU has 69.26 million shares outstanding and a market cap at $3.28 of $227.17 million with a net cash position of $51.8 million – giving XAU an enterprise value of only $175.37 million! XAU’s 2Q 2017 revenues grew by a stunning 112.5% year-over-year to $141.1 million! XAU’s operating cash flow was negative by only ($560,000) for a year-over-year improvement of $4.14 million!
In February 2016, XAU raised $36.6 million in a private placement at $3.90 per share. XAU needs to rise 18.9% just to rebound to its latest private placement price – and XAU just announced a major share buyback! We consider XAU a steal at these levels and believe it will be trading north of $5 per share very soon.