Bullion Management Group Review
Last update: 21.09.2017
What Bullion Management Group offers to gold investors
Bullion Management Group (BMG) offers private investors with BMG BullionBars the option to buy and store physical gold, silver and platinum bullion. The precious metals are stored in vaults operated by the Bank of Nova Scotia or Brinks. The holdings are regularly audited by an independent auditor. Clients can request delivery of their bullion bars.
About Bullion Management Group
|Headquarters||Toronto, Canada (additional offices in Vancouver, London and Panama)|
|Founded||1998 (BMG BullionBars was launched in 2008)|
|Number of clients||Ca. 20,000|
|Assets||Assets under management (12/2016): Canadian dollars 358 million, whereof about 46 million in BMG BullionBars|
Toronto-based Bullion Management Group Inc. (BMG) is a precious metals bullion investment company that offers two distinct types of investments. Since 2002, BMG has managed BMG BullionFund, an open-end mutual fund trust with a fixed investment policy to purchase equal dollar amounts of gold, silver and platinum precious metals bullion. BMG BullionBars was launched in 2008 and gives investors the option to buy and store gold, silver and platinum bullion bars.
The BMG Group of Companies includes the parent company, Bullion Management Group Inc., and its wholly owned subsidiaries, Bullion Management Services Inc., Bullion Marketing Services Inc., and Bullion Custodial Services Inc. BMG BullionBars is offered by Bullion Custodial Services (BCS) Inc. Two of BMG’s subsidiaries are regulated by the Ontario Securities Commission.
For Canadian and international investors, BMG BullionBars offers a way to purchase and store certified investment-grade Good Delivery gold, silver and platinum bullion.
With BMG BullionBars the investors may choose to have gold delivered to them or have the bars stored on an allocated and insured basis in the vault at the Bank of Nova Scotia in Toronto, Canada, or in vaults in New York (USA) or Hong Kong. The Bank of Nova Scotia is a Canadian chartered bank and through its ScotiaMoccata Division a member of the London Bullion Market Association (LBMA).
Bullion Management Group offers gold bars in three sizes: one kilogram, 100 ounces, and 400 ounces. With each bullion bar purchase, title of the bar is passed to the investor who is issued a unique, registered Bullion Deed showing the owner’s name, bar weight, assayer, purity and serial number of the respective gold bar. Investors can also pruchase 1-ounce Maple Leaf gold coins in tubes of ten.
BMG works with so-called Registered Authorized Bullion Dealers to distribute its BMG BullionBars product.
Bullion Management Group was founded by Nick Barisheff, who is president and CEO since the inception of the company.
|Precious metals||Gold, silver, platinum|
|Minimum investment||10x 1-ounce gold Maple Leaf coins|
|Delivery of gold||Delivery services to most cities worldwide with Brinks|
|Vault locations||Toronto (Canada), New York (USA), Hong Kong|
|Currencies||U.S. Dollars, Canadian Dollars|
|Additional features||US clients can hold BMG BullionBars in their Self-Directed IRA account with Entrust New Direction IRA|
The client’s metals are stored in the LBMA certified vaults operated by the Bank of Nova Scotia or Brinks. The bank issues a monthly report to BMG (BCS – Bullion Custodial Services) that records bars added or removed from the vault and details a complete audit trail of the bar inventory. BMG’s auditor, BDO Canada LLP, reviews all bar lists and reconciles the vault holdings annually.
With each bullion bar purchase, title of the bar is passed to the purchaser who is issued a unique, registered Bullion Deed showing the owner’s name, bar weight, assayer, purity and bar serial number. In addition, the Custody Agreement provides for allocated and insured storage.
Within a week after the client’s purchase has been carried out, BCS will issue a Bullion Deed that will identify the investor’s specific BMG BullionBars by weight, purity, refiner and serial number. Each BMG BullionBar has its own, unique deed that proves the client’s ownership of the allocated bars.
Each month, ScotiaMocatta issues a report to BMG listing the bars added to or removed from the vault. This provides an audit trail of the bar inventory. BMG’s auditors perform an annual, physical count of all BMG BullionBars held in the vault and review the bar list changes against vault holdings and issued bullion deeds. The BMG BullionBars list from custodian ScotiaMocatta is published on BMG’s website.
Since November 9, 2011 Bullion Management Group is an associate member of the London Bullion Market Association (LBMA).
Trustable Gold’s Safety Criteria
|Outright Ownership of 100% Gold||Insured, independent storage||Transparent, external audit||Price transparency||Liquidity||Regulation|
|Clients of BMG own their gold, it is their legal property||The gold is insured; Gold is stored with Bank of NovaScotia or Brinks. BMG carries additional insurance.||BMG’s auditors (BDO) perform an annual physical count of all BMG BullionBars held in storage, and review the bar list changes against vault holdings and issued bullion deeds. The Bank of Nova Scotia and Brinks issue a report to BMG, listing the bars added to or removed from the vault; the BullionBars list from the Bank of Nova Scotia and Brinks ScotiaMocatta are published on BMG’s website.||No, see below||BMG is available on business days to execute buy or sell orders||BMG is independent of banks, the custodian Bank of Nova Scotia is a regulated Canadian bank|
Buy / sell fees
- 10 coins a 1 oz: 4.36%
- 1 kg gold bar: 2.39%
- 100oz gold bar: 2.33%
- 400oz gold bar: 2.21%
The charges for armoured car delivery vary depending upon the distance from the client’s BCS vault location to their desired delivery location and the value of the bars being delivered.
BMG’s BullionBars are available for purchase through BMG’s Bullion Custodian Service (BCS).
1. Open an account
BMG verifies the investor’s personal information and ensures the procedure complies with Financial Transactions Reports Analysis Center of Canada (FINTRAC) regulations. FINTRAC is Canada’s financial intelligence unit, specializing in the collection, analysis and disclosure of financial information and intelligence on suspected money laundering and terrorist financing activities.
2. Place buy order
Once the application is processed, orders can be placed by calling or sending an email to a BMG representative.