Goldmoney vs. Coins & ETFs

Goldmoney vs. ETF

The benefits of a Goldmoney holding include the assurance of knowing that gold, silver and platinum group metals are held in secure and insured vaults, fully identified as owned by individual Goldmoney clients. This form of direct individual ownership is superior to owning a share (or shares) of a corporate entity or trust, such as listed ETFs or other collective vehicles, for several reasons. First, a holding in a metal ETF is a form of indirect rather than direct legal ownership, as it is the intermediary, rather than individual, that owns the metal.

Second, physical ETFs are designed so that their shares closely track the price of physical gold. For this service, they charge annual management fees of approximately 0.4-0.6% per annum. This is three to four times greater than the annual all-in fee paid by Goldmoney clients for the secure storage, bar testing, insurance, and audits of their gold as well as the full suite of additional features and services provided by Goldmoney. The higher fees associated with the ETFs are due in part to their requirements to comply with securities laws, including associated regulatory filings. These costs are higher than those incurred by Goldmoney in meeting its regulatory obligations.

Third, some ETF prospectuses point to possible risks, such as that redemptions may be suspended temporarily or indefinitely at the discretion of the management company, and that custodians may be free to appoint sub-custodians, whose performance cannot be guaranteed.

Finally, investors should also be aware that some ETFs do not own all physical metal directly, but gain their exposure to gold and silver prices in whole or part through futures, options, swaps, leases or other derivatives, which have some combination of exchange, issuer and counterparty risk.​ These risks can be difficult to quantify, in particular in the event of a financial crisis.​​

Goldmoney Holding vs. Gold ETFs

Goldmoney vs. Coins & Bars

Owning gold in smaller physical units such as coins and small bars generally results in paying 7-10% above the price paid at Goldmoney.

Dealers also tend to offer buybacks at a discount of about 2-3%. Prices can be reliably compared against the published spot price.

Although storing coins and small bars at home is free, it isn’t advisable and any sizeable amount would require insurance. Generally, insurance for homeowners on gold amounts to 1-2% a year of its value.

As a Goldmoney client, you benefit from our access to wholesale insurance prices (as little as 0.12% for gold), which we include in our storage fees.

For those who are not concerned with the higher fees, Goldmoney offers clients the ability to redeem their metal value into coins and bars through our subsidiary Schiff Gold, a joint venture between Goldmoney Inc. and legendary gold investor Peter Schiff.

When you are ready to convert your precious metals balance into coins or bars, simply follow the process from your Goldmoney Holding. Schiff Gold representatives can call or email you to help guide you through the selection and delivery of coins and bars.

If you have old bars or coins you wish to sell, Schiff Gold can also arrange to buy your existing coins and bars and fund your Goldmoney Holding with the proceeds of your sale(s).

Call a Schiff Gold representative today at 1.888.GOLD.160 (1.888.465.3160) or visit SchiffGold.com.

Goldmoney Gold Bar and Gold Cubes