Goldmoney Fees

GadsillaGadsilla Posts: 131 Bronze ✭✭✭
Goldmoney very transparently disclose their fees, they can all be found at: https://www.goldmoney.com/images/media/Files/Docs/goldmoney-fees.pdf

However, my questions is regarding the 3% convenience fee when when a credit or debit card is used. What's the reasoning behind this fee being as high as it is ? Especially considering that there are purchase and sell fees as well as fund withdrawal fees. Is there something I'm missing ? I don't see the point when Goldmoney is making profits from the purchase and sales without the fees at all.

If you hold metal assets for 1 FY that would equate to a minimum of a 4.15% annual expense ratio at withdrawal.

Best Answer

  • GoldmattersGoldmatters Posts: 4,068 Admin
    Accepted Answer
    @Gadsilla this is not an official answer, but off the cuff I would assume its the same reason why any company would charge a fee for using a credit card which is that merchants themselves are charged when clients use a credit card.

    My assumption would be that GM is charging that fee so they are not losing money every time someone buys gold with a credit card.

    I just went to several online precious metals dealers to test and they all charge a credit card fee.


Answers

  • JayJayJayJay Posts: 26 Tin ✭
    I was asking the same. You can actually go buy a nice silver round for the all fees that you ended up paying. 3% from Goldmoney and then if you're bank is based in the US the bank will charge you another 3%. So there is no advantage of having Goldmoney account right? Really thinking now about closing the account.
  • GadsillaGadsilla Posts: 131 Bronze ✭✭✭
    edited January 14
    JayJay said:

    I was asking the same. You can actually go buy a nice silver round for the all fees that you ended up paying. 3% from Goldmoney and then if you're bank is based in the US the bank will charge you another 3%. So there is no advantage of having Goldmoney account right? Really thinking now about closing the account.

    There is the advantage of low storage fees which means that overtime if you're saving long-term you'll profit from it. However, I don't see why it would be so expensive to deposit money into their platform when you can't withdraw it until you've made a gold purchase first.
  • JayJayJayJay Posts: 26 Tin ✭
    Gadsilla said:

    JayJay said:

    I was asking the same. You can actually go buy a nice silver round for the all fees that you ended up paying. 3% from Goldmoney and then if you're bank is based in the US the bank will charge you another 3%. So there is no advantage of having Goldmoney account right? Really thinking now about closing the account.

    There is the advantage of low storage fees which means that overtime if you're saving long-term you'll profit from it. However, I don't see why it would be so expensive to deposit money into their platform when you can't withdraw it until you've made a gold purchase first.
    No advantage when you start to calculate the fees. Plus How will you get your physical metals if internet doesn't work. Your ownership only exist online. It's not like they issue you certificates of your metals for each vault. I hate to be negative but these are the things they need to continue to work on to earn trust from clients.
  • GadsillaGadsilla Posts: 131 Bronze ✭✭✭
    edited January 14
    JayJay said:

    Gadsilla said:

    JayJay said:

    I was asking the same. You can actually go buy a nice silver round for the all fees that you ended up paying. 3% from Goldmoney and then if you're bank is based in the US the bank will charge you another 3%. So there is no advantage of having Goldmoney account right? Really thinking now about closing the account.

    There is the advantage of low storage fees which means that overtime if you're saving long-term you'll profit from it. However, I don't see why it would be so expensive to deposit money into their platform when you can't withdraw it until you've made a gold purchase first.
    No advantage when you start to calculate the fees. Plus How will you get your physical metals if internet doesn't work. Your ownership only exist online. It's not like they issue you certificates of your metals for each vault. I hate to be negative but these are the things they need to continue to work on to earn trust from clients.
    You wouldn't be able to do anything without internet, that's silly. You wouldn't be able to do anything with your stock portfolio, pay bills or anything else for that matter. The ownership is insured meaning that you own it which is why you can have physical gold sent to you by Goldmoney. However, I somewhat agree on the fees. It for sure makes it harder to turn a profit when the fees are that high for just depositing your money.
  • GadsillaGadsilla Posts: 131 Bronze ✭✭✭
    @Goldmatters Do you know why there's a 3% deposit fee on credit/debit cards ?
  • GadsillaGadsilla Posts: 131 Bronze ✭✭✭

    @Gadsilla this is not an official answer, but off the cuff I would assume its the same reason why any company would charge a fee for using a credit card which is that merchants themselves are charged when clients use a credit card.

    My assumption would be that GM is charging that fee so they are not losing money every time someone buys gold with a credit card.

    I just went to several online precious metals dealers to test and they all charge a credit card fee.


    Thank you, I always appreciate your answers.
  • ReallylikecryptoReallylikecrypto Posts: 51 Copper ✭✭
    @Gadsilla, and the community, I spent sometime wondering about this also...

    Here is a solution....get a credit card that pays back more than, or at least 3 percent on purchases, there are a few if not many out there. Then fund your holding with it and voila... get your convenience fee ( or a good chunk of it,) back when you pay your statement balance.
  • Zach3000Zach3000 Posts: 12 Tin ✭
    Credit card fees make perfect sense. The fact they charge such fees with debit cards is what sucks. I know many others do too, but they didn’t used to. I have not purchased any since they did away with ACH. As an investor I hate to admit it but I have gotten small amounts of physical elsewhere because of this change. Their vision has changed a lot since the early days. Or at least the presentation of it. They don’t seem to be going after the small time savers anymore. Not in America anyway. I just hope what ever their strategy is that it’s working.
  • GadsillaGadsilla Posts: 131 Bronze ✭✭✭
    edited January 15
    There appears to be quite the dissatisfaction coming from the community regarding certain fees. I was quite surprised myself when Goldmoney wanted me to pay $300 to do a $10,000 deposit. However, I'd look to Goldmatters response. It appears to be a a part of the industry and not something unique to GM.
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