GoldMoney

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GoldMoney Review

What GoldMoney offers to gold investors

GoldMoney is a leading provider of precious metals investing. Private investors can buy and sell gold, silver, platinum and palladium bullion through GoldMoney. The precious metals are stored on behalf of the investors by independent vault operators. Investors acquire outright ownership of their precious metals and have a delivery option. The precious metals holdings are regularly inspected and audited, the respective reports are published.

About GoldMoney

Headquarters Jersey, British Channel Islands
Founded 2001
Employees ca. 50
Number of clients ca. 22,725
Assets About USD 1 billion in gold; total precious metals and cash/currencies of ca. USD 1.9 billion

GoldMoney was founded in 2001. GoldMoney offers private clients and companies the possibility to buy gold and other precious metals and to store them on behalf of their clients. In addition to buying and selling gold, GoldMoney’s customers can also transfer gold to other customers, i.e. pay with gold (since end of 2011 this option is only available in Jersey, British Channel Islands, due to regulatory issues in other countries).

Investors have outright ownership of the gold, which they bought through GoldMoney. They can choose between four different vault locations: Zurich (Switzerland) and Zurich Airport, London (United Kingdom), Hong Kong, Singapore and Toronto. Customers can also choose storage in multiple vaults in order to diversify gold holdings across several jurisdictions.

Clients of Gold Money can place their orders over the Internet or request a call back from an operator by telephone.

Investors, who buy gold through GoldMoney, normally acquire grams of 400 ounces good delivery standard gold bars as defined by the London Bullion Market Association (LBMA). The LBMA is the London-based trade association which represents the wholesale, over-the-counter market for gold and silver in London, the largest market of its kind in the world. It sets the specifications for ‘good delivery’ gold bars. Investors can also purchase and store 1kg or 100g gold bars with GoldMoney, this is also offered with storage by Via Mat in Zurich.

One of the investors backing Gold Money is Iamgold Corp., a leading, publicly listed mining company based in Canada.

Product details

Precious metals
  • Gold
  • Silver
  • Platinum
  • Palladium
Minimum investment 1 gram of gold
Delivery of gold Optional, separate fees apply (see below)
Vault locations
  • Hong Kong
  • London (United Kingdom)
  • Singapore
  • Toronto (Canada)
  • Zurich (Switzerland)
Currencies Clients of GoldMoney can trade gold in US Dollars, British Pounds, Canadian Dollars, Euros, Swiss Francs and four other currencies
Additional features Payment functionality, but only available in Jersey, British Channel Islands

 

Security rating of GoldMoney

GoldMoney has a range of policies and processes in place to provide a high level of safety and security. Gold Money uses Via Mat, G4S and Rhenus Freight Logistics as well as Brinks as vault operators. Via Mat, G4S and Brinks are providers of secure vaults and logistics services worldwide and an accredited members of the London Bullion Market Association. Since July 2012, GoldMoney offers also storage of gold at the Zurich airport in Switzerland by Rhenus Logistics. Clients who store full 400oz bars there and have them registered on their names, have the possibility to visit the vault and their holdings. Since August 2012, GoldMoney offers storage by Brinks in Toronto, Canada.

Each quarter, the total holdings of GoldMoney’s customers are published by the vault operators, Via Mat and G4S International, and inspected by Inspectorate International Ltd, an LBMA-accredited precious metals inspection company. A big four accounting firm then verifies and confirms that the amount of gold recorded every quarter by GoldMoney is equal to the amount of gold recorded in the vaults.

GoldMoney employs an ultrasound scanning technology to verify the quality of every gold bar it stores in one of the vaults.

GoldMoney does not loan its clients gold. Clients of GoldMoney can only trade gold if they have gold or funds available with GoldMoney, so there is no counterparty risk.

Trustable Gold Safety Criteria

Outright Ownership of 100% Gold Insured, independent storage Transparent, external audit Price transparency Liquidity Regulation Trusted Provider Seal
ok ok ok ok Liquidity Trusted Provider Seal
Clients of Gold Money own their gold, it is their legal property The gold is insured, the independent vault operators Via Mat, G4S and Brinks are members of the LBMA Quarterly audit by independent auditor and gold bar inspection company; audit reports are published Yes, see below Clients can place buy and sell orders from Monday to Friday, around the clock GoldMoney is independent of banks; GoldMoney has a ‘Money Service Business’ license in Jersey

 

Costs of GoldMoney

Premium/mark-up for buying and selling gold

  • No mark-up is charged for the purchase of gold. Also, the sale of gold is free from any mark-downs.

Commission for purchasing gold

Commission applies only for the purchase of gold:

Commission for US$:

  • $1 – 9,999: 2.49%
  • $10,000 – 99,999: 2.19%
  • $100,000 – 499,999: 1.39%
  • $500,000 – 999,999: 1.12%
  • $1,000,000+: ask for quote

 

Commission for British Pounds (GBP):

  • £1 – 6,099: 2.74%
  • £6,100 – 60,989: 2.69%
  • £60,990 – 304,949: 1.89%
  • £304,950 – 609,899: 1.62%
  • £609,900+: ask for quote

 

Commission for Euros:

  • €1 – 7,499: 2.74%
  • €7,500 – 74,989: 2.69%
  • €74,990 – 374,949: 1.89%
  • €374,950 – 749,899: 1.62%
  • €749,900+: ask for quote

 

Commission for CAD$:

  • CAD$1 – 9,899: 2.74%
  • CAD$9,900 – 98,989: 2.69%
  • CAD$98,990 – 494,949: 1.89%
  • CAD$494,950 – 989,899: 1.62%
  • CAD$989,900+: ask for quote

 

Commission for AUD$:

  • AUD$1 – 9,499: 2.74%
  • AUD$9,500 – 94,989: 2.69%
  • AUD$94,990 – 474,949: 1.89%
  • AUD$474,950 – 949,899: 1.62%
  • AUD$949,900+: ask for quote

 

Commission for Japanese Yen:

  • JPY1 – 847,499: 2.74%
  • JPY847,500 – 8,474,989: 2.69%
  • JPY8,474,990 – 42,374,949: 1.89%
  • JPY42,374,950 – 84,749,899: 1.62%
  • JPY84,749,900+: ask for quote

Commission for selling gold

GoldMoney does not charge fees or commissions for selling gold. However, GoldMoney reserves the right to do so under exceptional market conditions, but not without and only after informing the client before a transaction.

Storage and insurance

  • Storage with VIA MAT: 0.01% (monthly), 0.12% (annually)
  • Storage with other storage companies: 0.015% (monthly), 0.18% (annually)
  • Minimum fee of 0.001 grams per month for gold (ca. 5 cents (US))

Gold storage fees are applied per vault, i.e., if you hold gold in different vaults, you have to pay the storage fee several times.

Bank wire fee

For the transfer of funds from GoldMoney to the client’s bank account, a bank wire fee is charged. The fee varies by currency. The fee amounts to US$ 20 or a similar amount in other currencies.

Withdrawal fee for delivery of gold

  • 100 g: 4%
  • 1kg: 2.75%

Fees for shipping and insurance start at GBP 25 (UK)/GBP 100 (international) per kilo shipped or any part thereof.

Gold can also be delivered in 400oz standard bars. Fees vary by number of gold bars, delivery address, taxes and customs duties.

Last update: 17.04.2014

How to become a customer of GoldMoney

In order to buy gold or other precious metals with GoldMoney, investors have to perform the steps listed below.

There are different types of client accounts with GoldMoney: limited, basic or full holdings. A holding is the digital customer file where a client’s transactions and ownership of metals are recorded.

A Limited Holding has little functionality until the client completes the Client Acceptance Policy (CAP) verification process. A Basic Holding allows clients to transfer in funds and buy metals up to a total value of US$ 150,000. A Full Holding gives the client access to the full benefits of using GoldMoney, to buy and sell any amount of metals and to use metals to make payments. A standard holding can later be upgraded to a full holding.

There are “Fast-tracked” countries (USA, UK, Canada, Germany, etc.) whose residents can open a Basic Holding quickly through GoldMoney’s online sign up process.

1. Open a holding online
A client can open an account online by filling out the appropriate form.

2. Proof of identity
To obtain the CAP level status of a Full Holding, GoldMoney needs to verify the client’s identity and place of residence. The verification process can be completed entirely online for residents of Canada, the United States of America or the United Kingdom using the online identity verification service provided by Equifax. Customers in other countries will need to send a certified photo ID and proof of residence documents by mail to verify their identities.

3. Transfer funds
Clients can wire funds to GoldMoney from a bank account located in any of the fast tracked countries immediately after they have signed up.

4. Buy gold
After GoldMoney has received the funds, clients can place orders to buy gold, silver, platinum or palladium.

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