We ship precious metals to people who want to literally bury them in the backyard or store them in a hidden location in their garage. Certain accounts may have negotiated prices based on the total volume of ounces stored per type of metal. The fee structure for storing gold in a custodian is similar to buying other financial assets. When an investor buys gold, the investor usually has to pay a premium on the current gold price, which is provided by London Gold Fixing or quoted by other recognized authorities (e.g.
many depositaries only guarantee that the customer has the metals in their account and not that the customer’s metals are separated from other customers’ items. Compared to buying physical gold in the form of bullion or investment coins, which are handed over or delivered to investors, investments in safe gold are often more cost-effective for private investors. In addition to the premium on the price of gold when buying, the investor often has to pay a fee, depending on the gold provider, which is usually calculated as a percentage of the price of gold. While he began buying bullion shaped bars, Small says he’s bought American Eagles and Canadian Maple Leafs more recently because he believes “they’re more fungible.
It is often more expensive for investors to store their gold in a safe deposit box or in a private safe at home than to pay to store safe gold. When investors consider storing gold in a custody account, Clark says investors should always ask whether or not their investment is held on the holding company’s balance sheet. Investors in physical gold should be aware that they not only have to pay a premium or premium when buying the gold, but must also take into account a discount when selling their gold. The costs depend on the monthly closing price of each precious metal and the total weight of each precious metal in the customer’s account.
Companies charge the fee daily based on the price of gold multiplied by the number of ounces in an account, multiplied by the percentage fee and divided by 365 (days) to determine the annual interest rate. The overall spread consists of the premium on the price of gold when buying from the gold dealer (“buying spread”) and the discount when selling gold to the gold dealer (“selling spread”). The premium is part of the overall “spread,” i.e. the difference between the offer price quoted by gold dealers and the ask price for gold. As a rule, the larger the gold bar in which the investor invests his money, the cheaper the investment is.