Published: October 6, 2020
As you may be aware, The Perth Mint is the current custodian of all gold and silver backing the Precious Metals Account. Due to regulatory changes last month, they no longer offer this account type.
On October 29, 2020, we will be ending our relationship with The Perth Mint and moving all precious metals holdings to our new custodian, a global leader in high security bullion vault storage.
All bars will be stored in New York location initially, and we have plans to store at other international locations in the future, as described in the “new features & benefits” section below.
Action Required
Although there are numerous benefits from moving to a new custodian, unfortunately there are costs that we will incur, such as fabrication and transfer fees. To continue offering this product, we ask that you share some of these costs with us by accepting a Custodian Transfer Fee.
Your next steps
Option 1: Accept the Custodian Transfer Fee
If you would like to keep your holdings and migrate with us, we will deduct this one-time Custodian Transfer Fee from your bank account on October 29, 2020.
| Type | Cost | Example |
|---|---|---|
| Gold | $2.00/oz | If you own 10 oz, we will deduct $20.00. |
| Silver | $0.35/oz | If you own 100 oz, we will deduct $35.00. |
No further action is required of you at this time. Simply watch your account for the one-time fee on October 29, 2020 and use your account as normal. If the fee overdraws your bank account, cover the balance by converting funds or liquidating some precious metals to avoid interest charges.
Option 2: Liquidate your precious metals
If you do not want to migrate with us and incur a Custodian Transfer Fee, you must liquidate your precious metals by the deadline: October 28, 2020 at 5PM EST. If you do not sell your precious metals by this deadline, your holdings will be included in the migration; and you will therefore be charged a Custodian Transfer Fee.
| Date | Event |
|---|---|
| October 6 | Notice of Custodian Change for Precious Metals sent |
| October 26 | Notice of Custodian Change reminder |
| October 28 | Deadline to liquidate your precious metals at 5PM EST, if you want to opt out of Custodian Transfer Fee |
| October 29 | Precious metals holdings will be migrated; and Custodian Transfer Fee debited from your account |
If you are unsure about these options or have questions, please email Trading Support at [email protected] or schedule a call.
New Features & Benefits
If you choose option 1 and allow your precious metals holdings to migrate to our new custodian, you can expect these new features and benefits.
Industry Standard Bars
We are migrating from Perth Mint “unallocated gold” and “pool allocated silver” to investment-grade LBMA or Good Delivery 1kg gold and 1000oz silver bars. These widely recognized bars improve the liquidity and transferability of our holdings.
Physically Stored & Insured
We’ve reduced your counterparty risk by buying investment-grade, fully insured and allocated bars that we fully own and store ourselves at our new custodian.
More Transparency
An internationally-recognized auditor will enter our vault and inspect our holdings, accounting for each bar we own. After we receive our audit letter, we intend to publish it to our website.
Additional Diversification
We are taking this opportunity to diversify precious metals holdings further, with the goal of mitigating economic and geographical risks. That’s why we are currently in discussion with new non-bank vaults around the world, which we will announce in the near future.
Frequently Asked Questions
Will buy/sell commissions or storage fees change?
Commissions and storage fees as published on the Precious Metals Account page are staying the same. We do intend to update the storage fees starting January 1, 2021, however at the moment future storage fees are not finalized.
Why did you choose New York as your new vault location?
Although we are starting our new vault relationship in New York, we intend to make use of their extensive international locations, which is consistent with our philosophy of diversifying assets internationally.
Update October 28, 2020: After reviewing customer feedback, we have decided to hold our metals at a high security vault in Singapore, instead of New York.
Can I take delivery of my precious metals?
We do not offer delivery because the Precious Metals Account is not an “allocated” program.
The purpose of the Precious Metals Account is to provide clients a convenient way to invest in gold and silver and convert those holdings for currency quickly and conveniently.
Is the Precious Metals Account an allocated program?
No. Clients have holdings in the Precious Metals Account, and our responsibility is to back the product 1:1 with physical precious metals in our network of reputable, non-bank vaults.
In return, clients receive true 1:1 price exposure to gold and silver, the convenience of buying and selling online, and 24 hour liquidity.