New Wealth Account Fees Are Very Significant

SpontaneousOrderSpontaneousOrder Posts: 231 Bronze ✭✭✭
The current fee for buying gold in a Wealth account is 2.49% (if buying less than $10,000). And the 1st tier for buying silver is 3.99%. There is no fee for selling.

With the new rates coming next month (as explained in the recent email to Wealth account holders), it will be only 0.5% to buy and 0.5% to sell for both metals, (the same fee as gold in Personal and Business accounts) and apparently there is no minimum amount to enjoy these lower fees. The new fees will be nearly 60% less for gold and 75% less for silver. That is huge.

Now suppose you want to do a metal-to-metal exchange, from silver to gold - in effect selling silver and using the proceeds to buy gold. Currently there's no fee to sell the silver, and you pay 2.49% to buy the gold. If I am understanding the announcement correctly, with the new fee structure you would pay only 0.75%, which is 70% less. In the other direction, swapping gold for silver, it would be 81% less! This is also huge.

In addition, some portion of transaction fees will be credited against storage fees, which are already very low.

I believe this totally blows away all other precious metals dealers and storage companies, and I think that these significantly lower fees will be of tremendous benefit to Wealth account holders, will encourage a lot more activity in Wealth accounts, and will significantly increase barriers to competition. Well done Goldmoney!

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