GoldMoney Introduces Silver Bullion
We spoke with James Turk of www.goldmoney.com
and asked him some key questions about now having silver available.
James and this writer have spoken about this several times
and we did not report it because we wanted to have our facts
correct and not anticipate something that might not take place.
Below are our 11 questions, with answers from Mr. Turk in
1. First, is the silver allocated?
Yes, all silver in GoldMoney is in allocated
storage, just like all gold is in allocated storage. They
are stored in the name of the customers of GoldMoney.
The metals are stored in specialized bullion vaults near
London, England, that are owned and operated by Via Mat. In
addition, the same governance procedures applied to gold are
also applied to silver. These include the regular audits and
controls as well as the other measures explained on the GoldMoney
Thus, with silver you have the same assurances of integrity
as you do with your gold. Your metals are safe.
2. Is the silver insured?
Yes, all the gold and silver in GoldMoney is
insured by Lloyd’s of London. The total value of this
metal is approximately $80 million.
3. Can a client actually take delivery of the
Yes, provided the customer has at least 1,000
oz. of silver in his/her account. We can deliver silver to
the customer in the form of 1,000 oz. bar(s). When a customer
requests delivery, the weight of the bar is removed from his
account, and is then made available at the Via Mat vault.
We do not charge a fee for this service, but once the bar(s)
is removed from GoldMoney, the customer then becomes responsible
for any costs, which of course depends on what the customer
wants to do with his bar(s).
4. What is the minimum to open an account?
There is no minimum. Whether you buy $50 of
silver, $50,000 of silver, or for that matter, any amount
you purchase, the silver you buy is allocated and insured.
5. If a person or company already has a GoldMoney
account is it necessary to open a new account for silver?
No, both gold and silver are recorded in
the same account.
6. What is the spread on a silver purchase
versus a gold purchase
The spread for silver ranges between
2% and just under 5%. For gold it’s 0.97% up to just
The spread you pay depends on two
things – the size of the purchase and whether you are
a GoldMoney member. Larger purchases are completed at smaller
spreads, and you get preferred member rates for buying if
you have at least 2,000 goldgrams or 5,000 oz of silver in
7. What is the fee when you sell?
There is no fee when you sell. And all
customers get the same rate, which is the prevailing spot
8. Why is the spread higher on silver
Basically, the economics of silver are different than
gold. At current prices it’s approximately 60-times
the volume for the same amount of dollar value. That means
silver has extra costs you don’t incur with gold. We
have to therefore past these costs on to our customers. Nevertheless,
GoldMoney offers one of the most economical ways to buy physical
silver, and I’m not aware of a more convenient way to
buy allocated silver.
9. How do you pay for your silver purchase?
You can purchase silver in the same,
convenient way you now purchase gold. You can have the money
debited directly from your bank account. You can also pay
for your purchase with a bank wire. Purchases can be made
in US dollars, Canadian dollars, British pounds or euros.
GoldMoney customers can also use their goldgrams to purchase
silver. And you can receive any of these five currencies when
you sell your silver.
10. Can you spend your silver as an online currency like you
can do with gold?
No, not at this time, for a couple of
reasons. First, we’re not sure whether our customers
want this feature. Also, few online merchants are prepared
at this time to accept silver. However, as people become more
familiar with silver, those things could change. So if our
customers want to use silver as an online currency, we would
be prepared to give them the same ability they now have with
gold, namely, to use it as an online currency.
11. Are you bullish on silver?
Absolutely. I’m bullish on gold,
and I expect silver to do even better. In other words, the
gold/silver ratio falls in precious metal bull markets. The
ratio now is around 60, which is pretty much the level it’s
been stuck at for the past few years. In the years ahead the
ratio will I expect fall considerably. Remember, it took only
17½ ounces of silver to buy an ounce of gold at their
record highs in January 1980. We should expect a similar performance
by silver this time around as the metals move higher in the
Disclaimer Note: David Morgan is an independent newsletter writer
and may act on behalf of his clients on certain recommendations
in this newsletter. All information in this newsletter is
believed to be correct, but its accuracy can not be guaranteed.
The owner, publisher is not responsible for errors, omissions
or losses sustained by the reader. David Morgan is the editor
Investors are advised to obtain the advice of a qualified
financial & investment advisor before entering any financial
transaction. For information about his services please visit
Free-Market News Network does not represent, warrant, or endorse
the accuracy, reliability, completeness or timeliness of any
of the information, content, views, opinions, recommendations
or advertisements contained on, distributed through, or linked,
downloaded or accessed from any of the information contained
in this contributed commentary.