GoldMoney storage fees is a hot topic that comes up frequently. When investing, it’s great to know that you’ve got options, and GoldMoney is an increasingly popular one with individuals who think outside of the box. Many people choose to go with banks, since it’s what people have been doing for decades, and what worked in the past may continue to work now. However, just because something’s the most popular option doesn’t make it the best.
Banks have two major drawbacks: they use national currencies and they often employ fractional reserve banking. National currencies have a habit of fluctuating with the economy, meaning that your investments can lose significant value if the markets dive. In extreme situations, massive inflation can reduce your wealth to a fraction of what it was. In these cases, people may panic and try to withdraw their funds from the bank to get what little use they can from it. This may cause a run on the bank, which is a result of fractional reserve banking. The bank lends out much of the money you invest, meaning it only keeps some of your money available. If lots of people withdraw their funds, there may not be enough to reimburse every client.
An investment option that can survive in some of the worst economic conditions is gold and other precious metals. These metals may retain their values even when currencies are falling, and can actually increase in worth by a fair amount in these conditions. It makes sense to buy gold, silver, platinum and palladium if you want to protect your wealth against a recession or depression.
Four of these precious metals that people invest in are gold, silver, platinum and palladium. Gold and silver are self-explanatory, and have been used as investments since ancient times. Platinum and its sister element, palladium, are extremely rare, and are very useful in the construction of high technology. Due to the scarcity of these metals, their values are largely guaranteed, particularly when they have so many industrial uses as well.
The trouble with metals are that they’re physical investments. If you buy a bar of silver, it’s a physical chunk of silver that you now have to store somewhere, provide security for, and get insurance on. There’s always the chance that your metals could be stolen, or destroyed by a fire or other catastrophe. If you want to sell it, you’ve got to find some way to get it to your buyer. Basically, the best thing to invest in is also one of the most awkward things to have to have around, and one of the most important to protect.
What is GoldMoney?
GoldMoney will sell you those metals, and they’ll handle the storage, insurance, and security for you. You will still own the metals in a very real sense, and you can even have them delivered to you physically.
However, as discussed in our full GoldMoney review, it’s access to the Gold Money infrastructure that makes investing with them so convenient. If you want to sell some platinum, you can do so online, and GoldMoney will arrange the sale. Moving gold from one vault to another is a fairly simple process as well; again, just use the online application, and your metal will be on its way to another vault in no time at all.
There is even a system in place that allows clients to make online purchases with their precious metals. In this way, they can avoid handling national currencies altogether when making purchases, and they don’t need to withdraw funds from their GoldMoney account, called a Holding, to make use of their investment. This is the realization of the founder James Turk‘s dream, which was to provide a way for clients to secure their wealth in a stable form without losing the ability to use it.
GoldMoney Storage Fees
GoldMoney stores the metals it sells you in the four vaults it operates; which vault or vaults is up to you. These are protected by security companies that provide some of the best services in the world, whether it’s VIA MAT or Q4S. Neither of these companies are cheap, and as such, GoldMoney charges annual storage fees. These fees are based on what kind of metals you have stored, and in what quantity. They can range from 0.15% to 0.99% annually, charged in grams of gold. Storing these metals in a smaller vault on your own is much less likely to provide the level of security that VIA MAT or Q4S provides for GoldMoney.
GoldMoney also needs to provide the appropriate amount of insurance to protect your investments, but since they’re a large company with massive stocks of clients’ precious metals, they can arrange great rates that individual customers very likely couldn’t match. It’s still costly, however, and the storage fees go towards covering those premiums. Similarly, GoldMoney needs to regularly audit its stocks, to ensure that it is providing its customers with metals on a one-to-one basis, where every customer is allotted the amount that he or she has purchased. While it could be less expensive for the company to monitor its own stocks in this way, a higher level of accountability is managed through hiring third-party auditors. These auditing services can also be quite expensive, and contribute to the storage fees.
GoldMoney isn’t just about convenience and providing good prices on precious metals, it’s about protecting its clients’ investments, and the level of security necessary to ensure that their supplies of gold, silver, platinum and palladium are kept safe can be pricey. As a large international company, they can manage favorable GoldMoney storage fees while at the same time dealing with top-tier contractors, and as such have managed to get VIA MAT and Q4S to watch over their, and their clients’, precious metals.