Goldmoney is a mission-driven financial technology company that is publicly traded on the Toronto Stock Exchange (TSX:XAU). Goldmoney is the world’s largest regulated precious metals custodian, investment firm, and payment network.
Goldmoney is regulated as a Money Services Business by the Jersey Financial Services Commission (JFSC) and has subsidiary service registrations with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and the Financial Crimes Enforcement Network (FinCEN) in the U.S.
Counterparty Risk Protection
A Goldmoney Holding operates like other financial services accounts, with the convenience of online trading and management; however, once a customer owns settled metal, they are not exposed to the counterparty risk that can arise from bank or broker insolvency, or from the management of a securitized asset.
100% Metal Ownership (Fully-Reserved)
You are the absolute owner of your gold, silver, platinum, and palladium.
When you purchase precious metals through your Goldmoney Holding, you hold and own the physical metal in your name. From a risk perspective, this is the next best thing to owning gold in your hand, but with the benefit of online access, trading, and the security of fortified vaulting. Goldmoney is not a "paper metal" product, which means that your metal ownership is not dependent upon the ability of, for example, an exchange traded fund (ETF), contract for difference (CFD), or commodity future to obtain and redeem metal for you when you want to sell it.
Nearly all "paper metal" programs work on a fractional reserve basis, which means that if the majority of the program's customers wanted to redeem their metal for cash at once, the program operator would not be able to meet its obligations. In other words, "paper metal" products merely represent a promise to pay metal or cash equivalent. These products do not provide direct ownership of metal, and therefore expose you to counterparty risk as you are dependent upon the program issuer's ability to meet its obligations.
Contrary to the fractional reserve nature of "paper metal" programs, the quantity of allocated customer metal in a Goldmoney Holding 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. Your precious metals are not recorded on Goldmoney’s balance sheet, which means that Goldmoney does not have any direct claim on the metals. We simply safeguard them on your behalf.
Secure and Insured Storage
All precious metal held by Goldmoney clients is fully allocated. Clients also have the ability to register specific bars in their name for an additional layer of security. Neither Goldmoney nor the vault operation has any claim to clients’ bars.
Clients’ precious metals are stored in secure, fully insured vaults in Canada, Hong Kong, Singapore, Switzerland, the U.K., and the U.S. All vaults are operated by leading professional private vault operators, including: Loomis International (Nasdaq OMX: LOOM), Brink’s (NYSE: BCO), G4S (LSE: GFS), Malca-Amit, and Rhenus Logistics.
Goldmoney is responsible for ensuring that the insurance coverage maintained by our vault providers is at least equivalent to the value of all the metals they hold on behalf of Goldmoney clients, and we transparently disclose these insurance certificates to clients within the Governance section of their Holding Dashboard.
Regular and Independent Audits of Client Holdings
At Goldmoney, we take extra steps to ensure that client holdings and metal are independently audited and externally tested. Through a combination of independent third party audits and our patented daily settlement technology, we ensure your metals are safe.
- As a publicly listed company, we file quarterly and annual financial statements and disclosures that are reviewed and audited by KPMG, a Big Four accounting firm. These statements are available here.
- We provide a Real-Time Audit of all customer metal and cash holdings, which can be found here.
- We publish SAS 70 Type II reports annually to our users, which are reviewed by our auditor to confirm that the amount of vaulted metal is equal to the metal held by our clients, thereby ensuring the one-to-one ratio and our clients’ ownership of the metal. These reports are available to Goldmoney clients within the Governance section of their verified Holding Dashboard. Our auditor also reviews and reports on other important areas such as governance practices, order processing, operational procedures, and IT security. We are pleased to note that there have been no exceptions reported by the auditor since we began SAS 70 reviews in 2006.
Metal Quality and Testing
We only sell precious metals of the highest quality that adhere to a strict chain of integrity.
London Good Delivery gold, silver, platinum, and palladium bars
All precious metals held for customers by Goldmoney meet the London Good Delivery standard established by the London Bullion Market Association for gold and silver bars and the London Platinum and Palladium Market for platinum and palladium bars. By adhering to this rigorous and widely accepted standard, Goldmoney mitigates the risk that a bar of gold, silver, platinum or palladium does not contain the weight of metal it is said to contain.
Each bar is marked with the following stamps:
- Year of production
- Serial number
- Assay stamp of refiner
Gold and silver bar specifications
The precious metal Goldmoney purchases on your behalf when you buy gold and silver always meets the following criteria:
The gold, silver, platinum, and palladium that Goldmoney acquires for you is produced by some of the most respected refineries in the world, including:
Ultrasonic gold bar testing
In 2007, we pioneered the use of ultrasound bar testing to ensure our bars have the highest metal quality and are free of foreign materials and defects. The quality test is performed using an ultrasound scanning device, developed by General Electric Inspection Technologies (GE). The test is carried out directly within our vaults. It is the same technology used to assure personal safety in the medical and aviation industries.
Once we have tested gold bars using our ultrasound scanning devices and are certain the bars adhere to our rigorous quality standards, they are approved for storage.
When looking to store precious metals, you expect your storage partner to ensure that there are robust security measures in place. At Goldmoney, we have been setting industry standards for 16 years to ensure the safety of your metals by providing:
- High online security standards
- Independent third-party audits
- Secure and insured storage
High Online Security Standards
Online security is more important now than ever before. Goldmoney provides exceptional security when you buy gold, silver, platinum, and palladium, and manage your Holding. The protection of your assets is of the utmost importance to us, which is why we employ the most advanced technology available to keep your assets safe.
Military Grade Encryption
Goldmoney uses military grade encryption (RSA 4096 and AES 256) to secure your account and personal information.
SMS Transfer Confirmation
Goldmoney addresses the issue of protecting client assets by enabling clients to link their mobile phones to their Holdings. This step allows clients to validate payments, gold bar delivery requests, and fund transfers going out of their Holding on their mobile phone before completing the authorisation of the transaction online.
Each time you request to make a metal payment to another Goldmoney client, request delivery of a gold bar, or transfer funds from your Holding to your bank account, you can receive an SMS to your mobile phone with a unique PIN code and a description of the transfer. Once you have reviewed the details of the transfer, you enter the unique PIN code on the Goldmoney website and complete the transfer. If you do not wish to use this additional security feature, PIN codes will be sent to your email address. Transfers will not be processed without correct PIN codes.
Bank Account Locking
Your Holding will contain details of your bank account(s) so you can easily transfer proceeds from the sale of your precious metals. You can lock the bank accounts that are linked to your Holding so that no additional bank account details can be added. This adds another layer of protection, as even if someone manages to gain access to your Holding, they can only send funds to the bank accounts you previously assigned.
Disable Metal Payments
You can disable the payments feature in your Holding if you do not intend to transfer your metal to other Goldmoney clients.
To manage the above settings, select Security Settings from your Holding’s Dashboard menu. For more information about security, see our Security FAQ.
Clear Procedure in Case of Bankruptcy
Standard Jersey bankruptcy procedures would be implemented in the unlikely event that Goldmoney were to go out of business.
Should you hold an amount of metal that is equivalent to the standard gold, silver, platinum, and/or palladium bar weight in Goldmoney, you will be able to take delivery of those bars. Additionally, you can take physical delivery of your gold in 100 gram and 1 kilo bars. The remaining metal would be sold and the cash proceeds would be transferred to you. Please refer to clause 16 (Winding-up or bankruptcy of Goldmoney) of our Client Agreement for further information.