Goldmoney vs. ETF
The benefits of a Goldmoney Holding extend beyond the qualitative aspects, and are vastly superior to Exchange-Traded Fund (ETF) holdings such as SPDR Gold Shares (NYSE:GLD) or the iShares Gold Trust (NYSE: IAU).
GLD, the leading ETF, is designed so that its shares track the price of gold. For this service, GLD charges an annual management fee of approximately 0.4%, which is three times greater than the annual all-in storage fee paid by Goldmoney clients for the storage, bar testing, insurance, and audits of their gold as well as the full suite of features provided for free with a Goldmoney Holding.
But this is only one reason to not own an ETF. There have been many recent examples of ETFs abruptly suspending redemptions or restricting shareholders from accessing or buying more of the underlying security.
The pyramid diagram displays the varying risks of metal ownership. While there is nothing that comes closer to owning gold in hand, allocated gold bullion – what Goldmoney Holdings provide – is the next best thing, while ETFs and unallocated bullion carry significantly more counterparty risk.
For students of history and those who understand common law property rights, the decision to have physical metal owned under your name at a vault custodian rather than a complex web of securities with limited redemption rights should be obvious. That’s ultimately the difference between owning precious metals through Goldmoney vs. ETFs.