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 italics.
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
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 over
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 your account.
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 rate.
8. Why is the spread higher on silver than
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
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 years ahead.
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 of www.silver-investor.com.
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 www.freemarketnews.com
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