GMONEY1 Silver ✭✭✭✭

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GMONEY1
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  • Re: ACH redemption fee seems higher than expected

    Careful @GoldNRoll ...I don’t think they are trying to “fool” customers or “overestimating” Holding balances; for example, it is pretty standard for a brokerage account like etrade to show your account balance as the midpoint of bids/asks of your positions. And if you sold any of those positions, you’d lose a bit to the market (maker) in the spread down to the bid price. Same thing here (except GM is taking a fee for facilitating the transaction).

    An example that is easier to understand: buying a car. You buy a car for $X, then take delivery of the car and drive it off the lot; that’s now a used-car with a lower market value and you (likely) would have to take a small loss to sell it down to willing buyers who are waiting for a lower price. BUT, if you had to replace the vehicle, you’d have to buy at the sticker price, so what’s a logical way to value your car the moment you drive it off the lot? I think a midpoint is reasonable (even though if you did sell it, you’d get less than that midpoint).

    I admit, for a “retail” investor who is newer, this might seem confusing (or possibly deceptive) but from my 10 yrs trading this seems pretty standard. The Goldmoney Holding does a better job of showing what the current bid/ask prices are, so in that regard I’d say if transparency with spreads is really important, then you should consider the Holding (opposed to Personal).

    Other places like APMEX sometimes have their company’s bid (i.e. the buyback price) at the time of purchase. For example, if you buy a silver eagle for $21.00, they’d be willing to buy that back from you right away at like $17.00. So what’s the fiat value of your eagle after your purchase?? Well, that depends...
    -replacement cost (ask)
    -midpoint
    -liquidation return (bid)
  • Re: ACH redemption fee seems higher than expected

    @thanksbuddy This is tricky to explain... so I'll do my best to simplify.

    First off, I'll start by using 1GAU (gold gram) as the unit for my example, instead of the $ numeraire.

    On the redemption screen in PERSONAL accounts, the unit price in the header is actually the mid-price for all vaults.
    So when it says $41.39/g, conceptually, you need to think about "bids" (prices at which a seller can sell to willing buyers) and "asks/offers" (prices at which buyers can buy from willing sellers). This is important because you actually sell at a price that is lower than what is displayed.

    Some might says it is deceptive to display the midpoint, but if you think about it, what if you wanted to replace that gram of gold-- the sell and buy would average out to the midpoint.

    Here is an example with numbers:
    I sell 1 GAU when the displayed midpoint is 41.04. In my transaction confirmation it actually lists the selling price at 40.68.

    Now... your math seems to be: (41.04 - 40.68) = .36 ---- and so you're thinking the fee is ~.88%, which is higher than the advertised .5%; HOWEVER...

    That 41.04 number should not be used in the equation even though it was displayed before because when redeeming you are essentially selling down to the bid price. Again, this is tricky because we don't actually know (and we don't actually ever see) what the that bid price is/was.***

    So in this example, you'd receive 40.68 (which already factors in the Goldmoney fee); to calculate the actual price of the gold, solve for x:
    40.68 + .005x=x
    x= 40.8844221 = price you actually got for the gold
    fee= .2044221

    so... the fee is like 20 cents per gram in this case.
    Note that the spread to the midpoint was actually 41.04-40.8844221 = .1555
    so... the "missing" or "extra" .3% "fee" is actually the portion of the "trade" or transaction that you lost to the market/spread.

    In summary for the example:
    Your math would be the wrong calculation and yield a fee of .36 or .88%.
    But in reality, the fee was .20 or .5% (as advertised) and .16 was lost to the market spread.

    *** in the new Holding accounts you can see bid/ask and calculate the spread, but in Personal, you cannot.
  • Re: You Deserve Better - Sweeping Changes to CS Coming!

    @Powerlunchmoney I agree. I still logon often, but the complaints/support issues were getting to me honestly. I didn't want to take the extra time to sift through it all. And I've mentioned before that an open forum runs the risk of damaging the brand and trust in the company.

    That said...

    There will be a lot to discuss on the upcoming earnings call. I hope that Roy et al address some of the growing pains and prospects:
    -customer support availability
    -Holding account verification time and process... and the rate of new users and platform adoption.
    -the extent to which users are diversifying their portfolio of metals and currencies (i.e. are users using the metal to metal transfers etc)
    -Additional ways of getting money OUT of holding (ACH... and why are card load fee 1% on Holding)
    -Timing on ColdBlocks and crypto purchase/sales/holdings
    -Mene inventory update
    -Status on Toronto Branch traffic and Next branch.
    -Roadmap/timing for the "exchange" part of the company

    Their stock has done quite well this year, but there is still a lot of work to do.
    Looking forward to hearing about (and see them follow through with) these items.
  • Re: Goldmoney MasterCard

    Try running transactions as "credit" instead of "debit". That might work.
    Even if prompted to enter your pin... hitting "enter" should still process as credit.
    I haven't gotten my pin to work at POSs, and it's been a year now, but "credit" has worked.
  • Re: is it possible to buy silver

    @Optiman you can buy vaulted silver in the new Holding. Or if you wanted physical in-possession, then you can do that through SchiffGold/Goldmoney Physical.

    As for the bitcoin/litecoin/crypto question.... that is for @Roy Sebag and upper management to decide. It seems that many customers want this functionality (i.e. buying crypto, selling for metal, and also storage), so I'm sure they are having strategic discussions about this. I'm staying tuned.
    Cheers