Euro Pacific Bank

Notice of Custodian Change for Precious Metals

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.

 
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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.

 
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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.

 
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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.

 
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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.

LAST UPDATED: NOVEMBER 21, 2023

August 29, 2022: Euro Pacific Bank liquidation has commenced. Please read our formal instructions here as it is time-sensitive.

September 2, 2022: Update on pending transactions, brokerage, and account migration.

September 8, 2022: Qenta has emailed a welcome letter to all EPB clients. You can read a copy of it here.

September 16, 2022: Update on pending transactions for clients opting out of Qenta Inc. migration.

September 28, 2022: Update on pending transactions for clients opting out of Qenta Inc. migration.

September 30, 2022: Update on bank liquidation, pending transactions, and migration of assets to Qenta Inc.

October 8, 2022: Update on opt-out deadline for EPB clients who do not wish to migrate their account to Qenta Inc..

October 14, 2022: Customer Update & Townhall.

October 21, 2022: Update on Opt-out deadline - Extended.

November 01, 2022: Mutual funds & outgoing wire requests update.

December 05, 2022: Migration & liquidation update.

December 16, 2022: Comprehensive FAQ is published.

January 27, 2023: Correspondent bank update.

March 8, 2023: Migration & liquidation update.

March 31, 2023: Migration & liquidation update.

April 20, 2023: Liquidation update- Action required.

May 05, 2023: Migration & Liquidation update.

May 31, 2023: Migration & Liquidation update.

June 17, 2023: Receiver's report.

June 23, 2023: Migration & Liquidation update.

July 20, 2023: Migration & Liquidation update.

September 01, 2023: Migration & Liquidation update.

September 22, 2023: Report & Communication Portal.

September 22, 2023: Report & Communication Portal.

November 20, 2023: Progress Report (Opt-out Only).

November 21, 2023: Migration Update (Opt-in Only).