Quick Goldmoney Review
GoldMoney is our fund manager's preferred precious metals provider. It allows you to preserve your wealth by owning pure gold, silver, platinum and palladium bars that are fully insured, stored safely and economically in specialised bullion vaults. GoldMoney is independently audited on a quarterly basis by a Big Four accountancy firm and its governance procedures have set the industry standard. Their website is intuitive and very easy to use.
1. Precious Metals at Goldmoney
At Goldmoney you can purchase pure gold, silver, platinum and palladium. All precious metals are fully "allocated," meaning 100% customer ownership.... you are the absolute owner of your gold, silver, platinum and palladium. Your bullion is fully insured.
This is a big advantage over precious metals ETFs, pool accounts and gold certificates as nearly all of these types of investment operate on a fractional reserve basis, which means that these products merely represent a “promise” to pay metal. But promises can be broken. Since these programmes do not give you direct ownership of metal, you are exposed to counterparty risk...you are dependent on the programme issuer's ability to meet all of its obligations.
At Goldmoney, the quantity of allocated customer metal recorded in GoldMoney's database is always equal to the quantity of metal stored in the vaults. This one-to-one ratio is always maintained and forms a critical part of GoldMoney's governance model.
2. Goldmoney's Precious Metals Exchange Platform
GoldMoney allows you to switch your holdings between metals using their "metal exchange facility". Whether you want to switch between vaults or exchange some of your gold into silver, your platinum into palladium, or any other combination, this is all possible when you store your precious metals with GoldMoney. So if you think that silver has under-perfomed gold and that the trend will reverse, why not switch some of your gold holdings into silver.
3. Goldmoney Bullion Vaults
GoldMoney has implemented industry-leading procedures to safeguard your metals - from regular third-party audits, to comprehensive IT security, and secure and insured vaults.
When you purchase precious metals through GoldMoney, the allocated gold, silver, platinum and palladium bullion is stored securely in vaults in London, Zurich, Hong Kong, Canada and Singapore. Your precious metals are fully insured against theft from the vault. Goldmoney use VIA MAT, G4S, Brinks and Rhenus to store your precious metals. VIA MAT International is part of Mat Securitas Express AG, of Switzerland, one of Europe's largest and oldest armoured transport and storage companies. G4S is a leading international security group listed on the London Stock Exchange (LSE). Brink’s is one of America’s leading security companies. Rhenus is a well-respected German logistics business.
4. Low Cost
Goldmoney is much cheaper than purchasing bullion bars or coins through a dealer. Dealers charge a commission of around 7% on average.
Goldmoney customers own "Good Delivery" bars, a standard established by the members of the London Bullion Market Association (LBMA). These are the large bars by which LBMA members manage their gold and silver settlements when trading with each other. Since the refinery and assay costs required to smelt and verify smaller bars and coins is avoided, Goldmoney is able to charge low commissions.
Furthermore, there is no Sales Tax or Value Added Tax (VAT) when you buy gold, silver, platinum or palladium with GoldMoney. Tax is only charged when the metals leave the wholesale vault. Since the precious metals you buy remain in Goldmoney's vault, there is no tax to pay.
Commission is charged on precious metal purchases and metal exchanges on a sliding scale....the more you buy the less commission you pay. There is no commission when you sell. In addition, Goldmoney charge a nominal monthly fee which covers storage and insurance.
Goldmoney provides online access to the global precious metals markets from the comfort of your chair...trade gold, silver, platinum and palladium 24 hours a day, 7 days a week.
6. Registered/Reserved Bars
If you hold approximately 400 ounces (12,441 goldgrams) or more of gold, Goldmoney's "Registered 400 Ounce Gold Bar" facility enables you to register ownership of one or more of the gold bars stored in their vaults. When you log into your Holding and select "Bar Delivery & Registration > Registered Bars", you can choose the bars you would like registered in your name. These bars are then associated with a unique Registration ID created by you and displayed publicly on the GoldMoney gold bar list.
7. Physical Delivery
Once a bar is registered in your name, you may arrange to take delivery of it at any time. Whether you transfer it to another vault, choose to store it at your home or with a financial institution, GoldMoney can arrange delivery of the bar to a location of your choice.
Customers can also redeem and take physical delivery of their gold in convenient units of 100 gram or one kilo (1,000 gram) gold bars. Through partnership with Baird & Co, one of the leading bullion merchants and refiners in the UK, conversion of goldgrams into physical gold bars for insured mailing or collection may be completed at any time.
8. Goldmoney Legal Structure
GoldMoney is the registered business name of Net Transactions Limited, registered in Jersey, and which provides metal storage and metal payments services for its customers. GoldMoney's affiliate company is called Net-Gold Services Limited, which acts as the broker in the purchase and sale of precious metals. Net-Systems Software Limited is the entity that owns the technology property rights of the GoldMoney Group. Lastly, GoldMoney Network Limited is the holding company for the group and owns the patents covering digital currency and payments.
GoldMoney is regulated by the Jersey Financial Services Commission (JFSC). The JFSC is the main supervisory body that oversees and regulates Jersey's financial services industry. GoldMoney is also registered and regulated by the JFSC as a Money Service Business, and its regulated status can be confirmed by searching for "Net Transactions Limited" on the JFSC website's regulated entities search page.
9. External Reviews & Endorsements of GoldMoney
“It’s the very convenient re-monetization of gold and silver. It’s putting gold and silver back to work for ordinary people, in a very convenient way as a form of savings and as a form of payment...I’m a very satisfied GoldMoney customer of many years”. Chris Powell, Director and Treasurer of the Gold Anti-Trust Action Committee (GATA) at the 2009 Precious Metals Trade Fair in Munich.
“GoldMoney may be the best monetary system ever, and if governments don’t adopt it, I predict it will be widely used as a commercial service”. Peter Schiff in The Little Book of Bull Moves in Bear Markets, page 123.
“In general i would be very reluctant to trust most storage programs, but one exception is GoldMoney.com, founded by James Turk, a long-time gold advocate and widely respected figure”. Peter Schiff in Crash Proof 2.0, page 302.
“For the record, even though I know Jim Turk personally, I believe GoldMoney to be 100 percent safe, have an account there myself and believe that risks in the banking system far outweigh anything I can imagine inside GoldMoney”. Robert Prechter in Conquer the Crash, page 273.
Before we move on, here’s an interesting point...both the inflationists (Schiff) and deflationists (Prechter) are recommending gold and GoldMoney!
“GoldMoney is the safest “bank” that I have found, currently with over $800 million in assets. Moreover, in my opinion, it is safer than a normal bank because its not operating on a fractional reserve system. If everyone showed up at once to withdraw their funds, all of the funds would be on hand (unlike a fractional reserve bank which is only required to maintain 10 % of its capital in reserve)”. R. K. Tipton in Financial Meltdown Phase II, page 72.
Also...Precious Metals Investing for Dummies p134, Buy Gold Now p154, Endless Money p350 and 374, Rich Dad's Advisors: Guide to Investing In Gold and Silver, Acknowledgements and p157, 5 Steps to Freedom: How to Cut Your Dependence on Institutions and Escape Financial Slavery p249, Secrets of Swiss Banking: An Owner's Manual to Quietly Building a Fortune p100.