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For millennia, gold has been valued as an asset that always retains or improves its value despite economic ups and downs. It has thus emerged as a well-liked investment choice for those who seek to diversify their portfolios and safeguard their cash. Yet, purchasing and storing precious metals may be a nuisance. For this reason, platforms like Goldmoney have become popular among investors. If you're wondering whether Goldmoney is the best option for you, our detailed review below covers its features, costs, security, and user experience.
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What is Goldmoney?
Goldmoney is a platform that allows investors to buy and sell gold, silver, platinum, and palladium. It was founded in 2001 and had its headquarters in Jersey, Channel Islands. The company’s unique selling point is that its clients can purchase and hold precious metals in a secure and insured vault without the need for physical ownership.
The company pride itself on its vaults which are located all around the world, including Canada, Switzerland, and Hong Kong. Not only that but users can also buy and sell precious metals in real-time, access their holdings 24/7, and receive monthly statements detailing their transactions and holdings.
Their Features
Goldmoney has a lot to offer to its clients. Here are some of their top features.
Buying and Selling Precious Metals
One of its main features is that it offers clients the ability to buy and sell gold, silver, platinum, and palladium in real-time. It also provides its customers the option to invest in various precious metal products, including 1oz US Eagle Gold or Silver, 1oz Canadian Maple Gold or Silver, Gold 1oz bar, Gold kilo bar (32.15oz), and Silver 100oz bar.
These products offer a diverse range of investment options to suit different needs and preferences. Investors can select the products that best align with their investment goals and risk tolerance. You can also choose to buy or sell at the prevailing market prices, and the platform charges a small fee for each transaction, which is usually around 0.5%, making it higher than some other online platforms.
Vault Locations
Goldmoney is also renowned for its global network of secure vaults, which allows clients to store their assets or investments in a variety of locations around the world. This feature provides users with the flexibility to choose where their metals are stored, as well as the ability to diversify their holdings geographically.
They currently operate secure vaults in several locations around the world, namely Canada, Switzerland, Hong Kong, Singapore, and the United Kingdom. Each vault is operated by its trusted partners, which are Royal Canadian Mint, Loomis, and Rhenus Logistics to name a few, and is fully insured, providing users with peace of mind that their assets are safe and secure. They can also move their metals between vaults at any time, allowing them to adapt to changing circumstances or preferences.
Redemption Options
Lastly, you can redeem your precious metals at any time when working with Goldmoney. Also, clients can choose to do so in a number of ways, including physical delivery or bank transfer. They can also decide to have their precious metals delivered to their doorstep in the form of coins or bars and expect to receive their packages in 2-3 weeks However, physical delivery is not available for all vault locations, and clients may have to pay additional fees for shipping and handling.
Goldmoney's Partnership with SchiffGold
They are able to offer physical delivery of assets either to the client's preferred vault or right to their doorstep through SchiffGold, a precious metals dealer founded by renowned investor Peter Schiff.
SchiffGold offers a wide range of products, including gold, silver, platinum, and palladium coins and bars. The prices for these products are updated in real-time and are competitive with other online dealers.
This partnership can be beneficial for those who want to diversify their precious metal holdings with physical ownership. However, you should keep in mind that additional shipping costs may apply, that depends on your location and the type of precious metals being delivered.
Educational Materials
For those who are not confident with their knowledge in the precious metals industry, the company’s website also offers various informative articles through their section, Goldmoney Research. It is a platform that provides news, analysis, and insights on market conditions. You will never get bored as they have varying content, such as articles, videos, and podcasts, as well as market data and charts. These are designed for novice and experienced investors and are cross-checked by industry experts.
Types of Accounts They Offer
Personal Account
This type of account is made and is best suited for individuals who want to buy, sell, and store precious metals for their own personal investment purposes and goals. It allows users to buy and sell assets, transfer funds, and withdraw funds, the usual features needed by personal investors.
Business Account
This is well-suited for companies that want to invest in precious metals. Business accounts have features such as multiple users, payment processing, and invoicing. Do note that they charge a small commission fee for their invoices.
Wealth Account
These accounts are designed for high-net-worth individuals and families who want to hold large amounts of precious metals. Wealth accounts come with additional features such as personalized investment advice, access to exclusive products, and enhanced security features.
Fees
The company charges fees for its services, including buying and selling precious metals, storing these in its vaults, and receiving the physical delivery of holdings. It is noteworthy that their fees are relatively high compared to some other online platforms.
Also, Goldmoney will charge fees based on the percentage of the total value of your holdings. This implies that the more you have, the higher the fees you will incur. However, other companies in the industry charge a fixed fee regardless of the amount held in the account. This is advantageous as it prevents you from paying more as your assets grow, thereby increasing your gains.
Here is a breakdown of the fees charged by the company:
Buying and Selling Precious Metals
When using their platform to buy or sell, you are subject to a fee based on the spot price of the metal at the time of the transaction. To be more specific, this fee is calculated as a percentage of the transaction value and varies depending on the type of metal and the amount you are buying or selling. For example, the fee for buying or selling gold is typically between 0.5% and 1%, while the fee for buying or selling silver is typically between 1% and 2%.
Storage Fees
There are also monthly storage fees to consider when you have your assets stored in their vaults. These fees vary depending on the location, ranging from 0.01% to 0.018%. For example, the storage fee for gold stored in a Singapore vault is currently 0.15% per annum, while those stored in a Hong Kong vault is 0.12%
Redemption Fees
When you choose to redeem your precious metals, you may also be subject to additional fees. Those who prefer physical redemption of holdings can arrange delivery for bullion given that they own 1 kilogram of gold and 1000 ounces of silver. This is subject to shipping and handling fees.
Dormancy Fee for Holdings
If there have been no successful logins for three years, a Goldmoney holding is considered dormant. The holding is categorized as inactive after seven years of inactivity. In either case, a one-time fee based on its current value is imposed. The cost for an inactive holding is 1% of its value for those that have 2 grams to 50 grams of gold or equivalent. The charge for a dormant holding is 0.75% of its value, that have 5 grams to 50 grams of gold or equivalent. If it stays inactive or dormant, a monthly fee based on the holding value is also paid. The monthly charge for an inactive Holding is 1% per year, and the fee for a dormant one is 0.75% per year. These fees are in addition to any other fees that may apply, such as storage fees.
Security
Security is a crucial consideration when putting your money into this type of asset, and it is good to know that the company takes this very seriously. Their platform uses advanced security measures to protect its users' holdings. These include:
Multiple Vault Storage and Locations
All of the assets held by the company are stored in secure vaults around the world. These are equipped with state-of-the-art security measures to ensure that all investments are safe, as their vaults are one of the primary reasons their clients transact with them. It is because they can choose which vault their assets are stored in and can even split their holdings between multiple vaults for added security.
Insurance
They also provide insurance coverage for all of the precious metals held in their vaults. This insurance protects against theft, loss, and damage and is provided by some of the world's leading insurance companies.
Two-Factor Authentication
To ensure that accounts are secured with them, they require two-factor authentication when accessing accounts and for all logins. This means that you must provide both a password and a verification code sent to your mobile device or email address in order to access your account, which makes it more secure.
Advanced Encryption
All user data and communications with Goldmoney are encrypted using advanced encryption algorithms to prevent unauthorized access. They impose military-grade encryption, more specifically RSA 4096 and AES 256 to ensure your information is safe.
Real-Time Audit
To ensure that the assets are accounted for and properly stored, they regularly audit their vaults. This process involves keeping a detailed audit trail of all transactions and account activity, providing users with a clear record of their holdings, and helping to prevent fraudulent activity.
How to Get Started With Goldmoney
It can be overwhelming if you don’t know where to start, as they offer different products and have certain processes when it comes to buying precious metals. Here is a step-by-step guide on how you can start your financial journey in alternative assets through Goldmoney.
Accreditation
The company is currently not accredited by Better Business Bureau. This is a warning sign since it’s better to work with companies that are recognized by other organizations to ensure their legitimacy. Also, they currently have a 2.4-star rating on Trustpilot which is another possible red flag that you should consider.
Overall User Experience
Goldmoney's user experience is generally positive, with users praising the platform's ease of use and customer service. The website is well-designed and easy to navigate, with clear information on fees and services.
You can also find answers to common questions and issues on their FAQ page, which covers topics such as account setup, funding options, and precious metals storage. Additionally, their articles provide users with helpful information on investing in this type of asset, economic trends, and global events that may impact the markets.
However, some users have reported longer wait times when contacting the company's support team during peak hours. Also, phone support is only available in English, which may be a disadvantage for non-English speaking users.
Another downside is the lack of mobile app support. The platform does not currently offer a mobile app, which may be inconvenient for users who prefer to manage their investments on the go. While the platform can be accessed through a mobile browser, it may not provide the same level of convenience and functionality as a dedicated mobile app.
Pros & Cons
PROS
CONS
Is Goldmoney Worth Your Investment?
Although we do think that Goldmoney is a decent company, we believe that there are better companies out there to make your investment with. It is indeed a legitimate company that tries to offer a unique way to invest in precious metals without the need for physical ownership and attract customers with its secured vaults located in various locations around the world. However, the abundance of negative reviews raises concerns that make it difficult to recommend their services.
For those looking to safeguard their portfolio through precious metal investments, it is advisable to partner with a company that prioritizes your wealth and well-being. Choosing a company with a better reputation and commitment to quality service may offer more peace of mind and better returns on your investment.
If you're interested in investing in precious metals to protect your portfolio, it's better to work with a company that cares about doing the best thing for your wealth.
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Or, continue with Goldmoney.