Does it not cost money to convert bitgold money to BTC, and BTC back to bitgold? I think this is pretty much the same concept of using LTC, or any other altcoin for collateral (maybe Vod just wants to pretend that he is boss around here, and arbitrarily say that the OP cannot get a loan).

The more important question to be asking is if a lender is able to properly secure bitgold USD while the loan is outstanding.....