Question about fees

bgatesbgates Posts: 3 Tin ✭
edited March 9 in About Goldmoney Products
Hello,

So I am wondering about some of the fees. Say I want to use the Goldmoney Mastercard to pay for goods and services. The first step before using it would require converting some of that gold to load currency onto the card. Is this where the 'ACCOUNT WITHDRAWAL FEES' would come into effect or is that something else? For example, in Canada, it says it is $22 CAD per wire transfer. The other thing I thought the fee might be for, is completely taking your gold out of Goldmoney, but I wasn't sure which it was.

Answers

  • RocketDogRocketDog Posts: 557 Silver ✭✭✭✭
    edited March 9
    Hi @bgates would this article help you?
    https://support.goldmoney.com/customer/en/portal/articles/1927344-redemption-fees-processing-times-policies?b_id=7977

    That article lists the fees. According to that article, redemption to the Goldmoney Mastercard is 0.5% of your redemption. So it would not matter how often or large the redemption is. The fee is always the same.

    For bank wires and physical redemptions it says it is .5% + 1/2 a gram (plus shipping and insurance for physical). In this case, each additional redemption costs you another .5gAu. You may want to make larger redemptions to economize. As far as Wire Transfers go, your bank may have an additional fee. It may be a fixed amount or a percentage, or both.

    I don't think there is any additional fee for emptying your Goldmoney Account. It would be at least 0.5% and maybe .5gAu and maybe a bank fee, depending on how you do it.

    One thing that you should consider is whether gold is up or down in your currency, since you bought it. If gold is up, you can wipe out the cost of the fees entirely. If gold is down, the fees may not be your biggest loss.
  • Lone_StarrLone_Starr Posts: 91 Bronze ✭✭✭
    @bgates

    If you have a holding account here are the fees.

    https://www.goldmoney.com/dealing-rates-and-storage-fees

    There is no CAD debit card.

    If you loaded the debit card from your holding account, the fee runs 1%

    So if its a matter of principal (using gold and silver for daily purchases) the fees shouldn't matter too much but, if you are like most people, fees count.

    If you have a holding account the fees work like this. ( If you use an email address to log in, you're still on the old personal account system so these fees won't matter.)

    There is a fee to fund. (depends on the route you go)
    There is a fee to purchase 0.5%
    There is a fee to sell 0.5%
    There is a fee to load your debit card 1.0%
    and in between there is a small storage fee.

    So for example if you use a credit/debit card to fund your account 3% + .5% to buy the metal +.5% to sell the metal + 1% to fund your debit card. So you need to buy low and sell high to cover the 5% in fees in this example. The bulk of the fees come from funding. So if you don't have a high cash back card it doesn't make sense to use the card IMHO.
  • bgatesbgates Posts: 3 Tin ✭
    So you can't use the Goldmoney Mastercard in Canada, at least when it is stored in a Canadian vault?
  • bgatesbgates Posts: 3 Tin ✭
    edited March 10
    Thanks for the comprehensive response, Lone_Starr. Perhaps you could give me a little more information on the fee to fund. If I use the bank wire method to fund, it is free? Are there any disadvantages to that? I mean, if say you invest 100k in Goldmoney, why would anyone pay 3% (or $3000), just for the convenience of having it sent through debit/credit card? Also, I've been reading youtube comments saying that people have been getting 'pending' notifications that sometimes last weeks, which makes me a bit hesitant.

    Also, when you say there is no CAD debit card, are you saying that you can't use the Goldmoney Mastercard in Canada, which acts much like a debit card? That was kind of my whole reason for doing it. Is this only true if you have the money saved in a Canadian vault? I suppose if it's somewhere else, you are paying a conversion charge? But at that point, is it still worth it?

    There is one other question. Can you bring your own gold/silver to Goldmoney? I have some from somewhere else. In the event of hyperinflation, I was hoping I could have a little stored with Goldmoney, and use it as a currency to buy things like food, instead of selling the bar back to the bank I bought it from, and having inflation eat away at the amount I had sold it for half way through the month.
  • Lone_StarrLone_Starr Posts: 91 Bronze ✭✭✭
    @bgates I would recommend going slow and using small amounts to start until you get a good feel for how Goldmoney works.

    That's correct there is no CAD denominated debit card even though Goldmoney is a Canadian company. There is a USD, EUR, GBP and maybe a couple other currency debit cards you can get. I'm not sure why there isn't CAD debit card. I don't believe it has ever been explained why they don't offer one.

    It doesn't matter which vault you use. The cash goes into a cash holding and then you select which vaults you want to use. Sort of like a brokerage account.

    If I understand correctly you can't bring your own gold/silver to Goldmoney.
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