Gold purchase fee of 2.85% - ouch !

Millbrook

Last night i purchased $300 of gold and received 7.276 gg. Thats $41.231/gg. The website, at the time of purchase said gold was at $40.09/gg. So I was charged 2.85% vs the 0.5% that GoldMoney says they charge for purchases. I've sent this question to GM Support.

Has anyone seen this kind of fee before? Why was I charged so much?
Thanks,
Millbrook

Cromius

Yes they drastically increased their purchasing fees. I noted this in another thread and I will probably create a thread to warn people from converting their Personal and Business accounts over to the new Holding account.

Here is the profile of the new fees:

It also looks like they increase their buy fees for gold.
Their fee table says: 2.49% for $1- $9,999(USD) worth of gold.
Plus this fee:
BUYING/SELLING FEES - GOLD, SILVER, PLATINUM, PALLADIUM
This fee is paid each time you buy or sell precious metals and is charged on top of the quoted buy and sell fees.
Transaction Type Fee Buy 0.5%


Note the wording says charged on top of the quoted buy and sell fees. I'm assuming the quoted buy and sell fees are those listed in the fees table based on purchase amount. Also note that the wording says "This fee is paid each time you buy or sell precious metals".
If i remember correctly, with my personal account I only paid fees when buying gold and not when selling it and the fee I paid was only 0.5 above the best bid price.

If I'm correctly reading this I think we can assume its going to become a lot more expensive to buy and sell gold here at Goldmoney.

TheRaveneer

Yes, a credit card purchase option did work out almost exactly to 3% on my dashboard. 2.9x% actually. I suspect you are trying to use a funding method that has extra costs. Use a bank transfer.

Millbrook

Last night i purchased $300 of gold and received 7.276 gg. Thats $41.231/gg. The website, at the time of purchase said gold was at $40.09/gg. So I was charged 2.85% vs the 0.5% that GoldMoney says they charge for purchases. I've sent this question to GM Support.

Has anyone seen this kind of fee before? Why was I charged so much?
Thanks,
Millbrook

mr1

Cromius said:

Yes they drastically increased their purchasing fees. I noted this in another thread and I will probably create a thread to warn people from converting their Personal and Business accounts over to the new Holding account.

Here is the profile of the new fees:

It also looks like they increase their buy fees for gold.
Their fee table says: 2.49% for $1- $9,999(USD) worth of gold.

To be clear for everyone, they have not drastically increased purchasing fees. The 2.49% buy fee was from a very old fee document that unfortunately had not been updated as it should have (it is now). The buy fee is still 0.5% as of 6/22/17.

Two things that trip people up on fee percentages:
-Watch out for the buy/sell spread. Goldmoney's 0.5% buy fee is on the best offer price. Be careful you don't focus on the spot price or the average of the buy/sell prices.
-There may be additional fees depending on the funding method. I know that Bank transfers in US and Canada do not have an extra fee, but credit card purchases and bank wires do.

Aimonu

From what I understand there are fees connected to some of the payment methods. For example credit card = 3% fee. Wire charge however is supposed to be free of charge.

mr1

@Aimonu
Yes, Goldmoney doesn't charge for the wire transfer. I was thinking of the fee that banks will charge you for the wire transfer. Thanks.